National e-Governance Services Ltd. (NeSL), a government entity, has received the in-principle approval for establishing an Information Utility (IU) in India – the first under the Insolvency & Bankruptcy Code (IBC).
Under the IBC, the regulator Insolvency and Bankruptcy Board of India (IBBI) registers and regulates Information Utilities that receive and store financial information in a universally accessible format duly authenticated by borrowers or creditors.
An Information Utility will have authenticated, and verified financial information and the obligation will be on all financial creditors, operational creditors and corporate debtors to provide information to the entity.
NeSL is owned and promoted by leading public institutions like State Bank of India, Life Insurance Corporation, Canara Bank, Bank of Baroda, ICICI Bank, CDSL, HDFC, Axis Bank, Union Bank of India and NABARD among others.
Such IUs, once set up, will help the National Company Law Tribunal (NCLT) in taking decisions and implementation of IBC.
“We are pleased to receive a go-ahead from the regulator recently. Within strict timelines, we are also endeavoring to put in place infrastructure and commitments under IBC and in that respect exploring various synergies with banks, financial institutions and Indian Bank Association (IBA),” said S Ramann, MD & CEO, NeSL.
Within a year, we hope to be fully functional benefiting borrowers and creditors, added the senior civil servant who earlier served as an executive director with the Securities and Exchange Board of India (SEBI).
Suvan Law Advisors along with SNG & Partners are the law firms assisting and advising NeSL.