valid as on 15/08/2019

IBC Section 210-Registration of information utility.
Effective from 01.04.2017

(1) Every application for registration shall be made to the Board in such form and manner, containing such particulars, and accompanied by such fee,

Provided that every application received by the Board shall be acknowledged within seven days of its receipt.

(2) On receipt of the application under sub-section (1), the Board may, on being satisfied that the application conforms to all requirements specified under sub-section (1), grant a certificate of registration to the applicant or else, reject, by order, such application.

(3) The Board may issue a certificate of registration to the applicant in such form and manner and subject to such terms and conditions as may be specified.

(4) The Board may renew the certificate of registration from time to time in such manner and on payment of such fee as may be specified by regulations.

(5) The Board may, by order, suspend or cancel the certificate of registration granted to an information utility on any of the following grounds, namely:—

(a) that it has obtained registration by making a false statement or misrepresentation or any other unlawful means;

(b) that it has failed to comply with the requirements of the regulations made by the Board;

(c) that it has contravened any of the provisions of the Act or the rules or the regulations made thereunder;

(d) on any other ground

Provided that no order shall be made under this sub-section unless the information utility concerned has been given a reasonable opportunity of being heard:

Provided further that no such order shall be passed by any member except whole-time members of the Board.

Refer regulation 3 to 7 of Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 . To view the regulation,Click Here
Refer regulation 39, 40, 41 of Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 . To view the regulation,Click Here

2.10.3:Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.

3. Eligibility for registration.

No person shall be eligible to be registered as an information utility unless it is a public company and –

(a) its sole object is to provide core services and other services under these Regulations, and discharge such functions as may be necessary for providing these services;

(b) its shareholding and governance is in accordance with Chapter III;

(c) its bye-laws are in accordance with Chapter IV;

(d) it has a minimum net worth of fifty crore rupees;

(g) the person itself, its promoters, its directors, its key managerial personnel, and persons holding more than 5%, directly or indirectly, of its paid-up equity share capital or its total voting power, are fit and proper persons:

Explanation: For determining whether a person is fit and proper under these Regulations, the Board may take account of relevant considerations, including-

(i) integrity, reputation and character,

(ii) absence of conviction by a court for an offence:

Provided that a person may be considered ‘fit and proper’ if he has been sentenced to imprisonment for a period of less than six months;

Provided that a person shall not be considered ‘fit and proper’ if he has been sentenced to imprisonment for a period (a) of not less than six months, but less than seven years and a period of five years has not elapsed from the date of expiry of the sentence, or (b) of seven years or more.

(iii) absence of restraint order, in force, issued by a financial sector regulator or the Adjudicating Authority, and

(iv) financial solvency.

Omitted vide  the Insolvency and Bankruptcy Board of India (Information Utilities) (Amendment) Regulations, 2017 dated 29.09.2017.To view the notification,Click Here
Omitted vide  the Insolvency and Bankruptcy Board of India (Information Utilities) (Amendment) Regulations, 2017 dated 29.09.2017.To view the notification,Click Here

2.10.39:Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.

39. Exit management plan.

(1) An information utility shall, at all times, have an exit management plan which shall include-

(a) mechanisms to enable users to transfer information to other information utilities expeditiously;

(b) mechanisms for preservation and transfer of information; and

(c) timelines and cost estimates of implementing the exit management plan.

(2) An information utility shall not amend its exit management plan without the prior approval of the Board.


2.10.4:Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.

4. Application for registration or renewal thereof.

(1) A person eligible for registration as an information utility may make an application to the Board in , along with a non-refundable application fee of five lakh rupees.

(2) An information utility seeking renewal of registration shall, at least six months before the expiry of its registration, make an application for renewal in , along with a non-refundable application fee of five lakh rupees.

(3) The Board shall acknowledge an application made under this Regulation within seven days of its receipt.

Form A given in the Schedule of  Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.To view the schedule,Click Here
Form A given in the Schedule of  Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.To view the schedule,Click Here

2.10.40:Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.

40. Surrender of registration.

(1) An information utility may submit an application for surrender of its certificate of registration to the Board, providing –

(a) the reasons for such surrender;

(b) details of its pending and on-going activities; and

(c) details of how the exit management plan shall be implemented.

(2) The Board shall within seven days of receipt of the application, publish a notice of receipt of such application on its website and invite objections to the surrender of registration to be submitted within fourteen days of the publication of the notice.

(3) After considering the application and the objections received, if any, the Board may, within thirty days from the last date for submission of objections, approve the application for surrender of registration subject to such conditions as it deems fit.

(4) The approval under sub-regulation (3) may require the information utility to-

(a) discharge any pending obligations; or

(b) continue such functions till such time as may be directed.

(5) The Board, after being satisfied that the requirements of sub-regulation (4) have been complied with, shall publish a notice on its website stating that the surrender of registration by the information utility has taken effect.


2.10.41:Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.

41. Disciplinary proceedings.

(1) Based on the findings of an inspection or investigation, or on material otherwise available on record, if the Board is of the prima facie opinion that sufficient cause exists to take actions permissible under section 220, it shall issue a show-cause notice to the information utility.

(2) The show-cause notice shall be in writing and shall state-

(a) the provisions of the Code under which it has been issued;

(b) the details of the alleged facts;

(c) the details of the evidence in support of the alleged facts;

(d) the provisions of the Code allegedly violated, or the manner in which the public interest has allegedly been affected;

(e) the actions or directions that the Board proposes to take or issue if the allegations are established;

(f) the manner in which the information utility is required to respond to the show-cause notice;

(g) consequences of failure to respond to the show-cause notice within the given time; and

(h) procedure to be followed for disposal of the show-cause notice.

(3) The show-cause notice shall enclose copies of relevant documents and extracts of relevant portions from the report of investigation or inspection, or other records.

(4) A show-cause notice issued shall be served on the information utility in the following manner-

(a) by sending it to the information utility at its registered office, by registered post with acknowledgement due; and

(b) by an appropriate electronic means to the email address provided by the information utility to the Board.

(5) The Disciplinary Committee shall dispose of the show-cause notice by a reasoned order in adherence to principles of natural justice.

(6) The Disciplinary Committee shall endeavor to dispose of the show-cause notice within a period of six months of the issue of the show-cause notice.

(7) The order in disposal of a show-cause notice may provide for-

(a) no action;

(b) warning;

(c) any of the actions under section 220(2) to (4); or

(d) a reference to the Board to take any action under section 220(5).

(8) The order passed under sub-regulation (7) shall not become effective until thirty days have elapsed from the date of issue of the order, unless the Disciplinary Committee states otherwise in the order along with the reasons for the same.

(9) The order passed under sub-regulation (7) shall be issued to the information utility immediately, and be published on the website of the Board. If the order passed under sub-regulation (7) suspends or cancels the registration of the information utility, the Disciplinary Committee may require the information utility to-

(a) discharge pending obligations;

(b) continue its functions till such time as may be directed, only to enable users to transfer information stored with it to another information utility; and

(c) comply with any other directions.


2.10.5:Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.

5. Disposal of application.

(1) The Board shall examine the application, and give an opportunity to the applicant to remove the deficiencies, if any, in the application.

(2) The Board may require the applicant to submit, within reasonable time, additional documents or clarification that it deems fit.

(3) The Board may require the applicant to appear, within reasonable time, before the Board in person, or through its authorised representative for clarifications required for processing the application.

(4) If the Board is satisfied, after such inspection or inquiry as it deems necessary, that the applicant-

(a) is eligible under Regulation 3;

(b) has the technical competence and financial capacity required to function as an information utility;

(c) has adequate infrastructure to provide services in accordance with the Code;

(d) has in its employment, persons having adequate professional and other relevant experience, to provide services in accordance with the Code; and

(e) has complied with the conditions of the certificate of registration, if he has submitted an application for renewal under Regulation 4(2) it may grant or renew a certificate of registration to the applicant as an information utility in , within sixty days of receipt of the application, excluding the time given by the Board for removing the deficiencies, or presenting additional documents or clarifications, or appearing in person, as the case may be.

(5) If, after considering an application made under Regulation 4, the Board is of the prima facie opinion that the registration ought not to be granted or ought not to be renewed, or be granted or renewed with additional conditions, it shall communicate the reasons for forming such an opinion within forty-five days of receipt of the application, excluding the time given by the Board for removing the deficiencies, presenting additional documents or clarifications, or appearing in person, as the case may be.

(6) The applicant shall submit an explanation as to why its application should be accepted within fifteen days of the receipt of the communication under sub-regulation (5), to enable the Board to form a final opinion.

(7) After considering the explanation, if any, given by the applicant under sub-regulation (6), the Board shall communicate its decision to-

(a) accept the application, along with the certificate of registration; or

(b) reject the application by an order, giving reasons thereof within thirty days of receipt of explanation.

(8) The order rejecting an application for renewal of registration shall require the information utility to-

(a) discharge any pending obligations;

(b) continue its functions till such time as may be directed, to enable its users to transfer information stored with it to another information utility; and

(c) comply with any other directions as considered appropriate.

Form B given in the Schedule of  Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.To view the schedule,Click Here

2.10.6:Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.

6. Conditions of registration.

(1) The certificate of registration shall be valid for a period of five years from the date of issue.

(2) The certificate of registration shall be subject to the conditions that the information utility shall–

(a) abide by the Code;

(b) abide by its bye-laws;

(c) at all times after the grant of the certificate continue to satisfy the requirements under Regulation 5(4);

(d) pay a fee of fifty lakh rupees to the Board, within fifteen days of receipt of intimation of registration or renewal from the Board, as applicable;

(e) pay an annual fee of fifty lakh rupees to the Board, within fifteen days from the end of every year from the date of grant or renewal of the certificate of registration, as applicable;

pay an annual fee of fifty lakh rupees to the Board, within fifteen days from the date of commencement of the financial year:

Provided that no annual fee shall be payable in the financial year in which an information utility is granted registration or renewal, as the case may be:

Provided further that without prejudice to any other action which the Board may take as it deems fit, any delay in payment of fee by an information utility shall attract simple interest at the rate of twelve percent per annum until paid.

Illustration:

(a) Where an information utility is registered on 1st December, 2016, it shall pay a fee of fifty lakh rupees within fifteen days of receipt of intimation of registration. No further payment is required to be made for the financial year 2016-17. The annual fee of fifty lakh rupees for the financial year 2017-18 becomes due on 1st April, 2017 and the same shall be paid on or before 15th April, 2017 and so on.

(b) Where the annual fee is paid on 20th April, 2017, interest at the rate of twelve percent per annum shall be paid for the delay of five days.

(f) seek prior approval of the Board for-

(i) the acquisition of shares or voting power by a person, which taken together with paid-up equity shares or voting power, if any, held by such person, entitles him to hold more than five per cent, directly or indirectly, of the paid-up equity share capital or total voting power;

(ii) a change of control;

(iii) a merger, amalgamation or restructuring;

(iv) sale, disposal, or acquisition of the whole, or substantially the whole, of its undertaking;

(v) voluntary liquidation, dissolution, or any similar action involving the discontinuation of its business.

(g) intimate the Board if a person holding more than five per cent, directly or indirectly, of its paid-up equity share capital or total voting power ceases to hold at least five per cent, directly or indirectly, of its paid-up equity share capital or total voting power, within fifteen days from such cessation;

(h) take adequate steps for redressal of grievances;

(i) take over information stored with other information utilities on the directions of and in the manner directed by the Board, and provide core services to their users; and

(j) abide by such other conditions as may be stipulated by the Board.

substituted vide the Insolvency and Bankruptcy Board of India (Information Utilities) (Amendment) Regulations, 2019 dated 25th July, 2019. To view this notification Click Here 

2.10.7:Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017.

7. In-principle approval.

(1) Any person who seeks to establish an information utility may make an application for an in-principle approval, demonstrating that the conditions in sub-regulation (2) are satisfied, along with a non-refundable application fee of five lakh rupees.

(2) If the Board is satisfied, after such inspection or inquiry as it deems necessary, that-

(a) the applicant is a fit and proper person; and

(b) the proposed or existing company which may receive registration would be able to meet the eligibility criteria under Regulation 3, it may grant in-principle approval which shall be valid for a period not exceeding one year and be subject to such conditions as it deems fit.

(3) During the validity of in-principle approval, the company referred to in sub-regulation 2(b) may make an application for a certificate of registration as an information utility to the Board in accordance with Regulation 4, but shall not be required to pay the application fee for registration.


IBC-Enforcement Notification [S.O.1005(E)] dated 30/03/2017


The Insolvency and Bankruptcy Board of India (Information Utilities) (Amendment) Regulations, 2017 dated 29/09/2017


Schedule- Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017


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