Conceptual Framework

CONCEPTUAL FRAMEWORK OF AN INFORMATION UTILITY

IBC sets the objectives for this key economic reform of addressing insolvency and to improve the ease of doing business. The highlights are:

  • Low time to resolution
  • Low loss in recovery
  • Higher levels of debt financing across more debt instruments
  • To promote entrepreneurship
  • Consolidate and amend the laws relating to Restructuring and insolvency resolution of Corporates, partnership firms and individuals

Information utility is designed as an institution for enforcement of contracts and is a pioneering effort:

To provide undisputed information for initiation of insolvency process

  • IU to act like a Credit Repository
  • Accept financial information from financial creditors and operational creditors
  • Financial information will get authenticated by all the parties of the debt and store to be used as evidence in the legal process
  • Provides a platform for the creditors and debtors-submission and authentication
  • IU is a Cost effective tool for
    • Proof of Borrower;
    • Proof of borrowing;
    • Proof of Security interest; and
    • Proof of Default.