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Bankruptcy Board notifies norms for information utilities, voluntary liquidation process

LiveMint logoLiveMint 31-03-2017 Shreeja Sen

New Delhi: The Insolvency and Bankruptcy Board of India (IBBI) on Friday notified the regulations for a credit rating agency like body for debtors, called information utility.

The IBBI also notified regulations governing the voluntary liquidation process for solvent firms.

With this, all rules with respect to the corporate insolvency resolution processes have been notified.

These utilities will collect data about debt which will be considered under law as preliminary evidence of existing debt.

In its press statement, the government said that information utilities will store “financial information that helps to establish defaults as well as verify claims expeditiously and thereby facilitate completion of transactions under the code in a time bound manner.”

The regulations laid down the eligibility criteria for registration of these bodies. Only public companies with a minimum of Rs 50 crore net worth will be eligible. More than half of the board of the information utility shall be independent directors.

The IBBI, under the regulations, will also lay down technical standards for the information utilities. These standards will cover matters of authentication and verification of information to be stored with the information utility, registration of users, data integrity and security, porting of information, interoperability among information utilities.

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