IBBI (Information Utilities) Regulations, 2017 (Amended upto 25.07.2019)

1 INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (INFORMATION UTILITIES) REGULATIONS, 20171 [AMENDED UPTO 25.07.2019] IBBI/2016-17/GN/REG009.- In exercise of the powers conferred by sections 196, 209, 210, 211, 212, 213, 214, 215, 216 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Board hereby makes the following Regulations to provide a framework for registration and regulation of information utilities in terms hereof, namely- CHAPTER I PRELIMINARY 1. Short title and commencement. (1) These Regulations may be called the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017. (2) These Regulations shall come into force on 1st April, 2017. 2. Definitions. (1) In these Regulations, unless the context otherwise requires- (a) “Application Programming Interface” means a mechanism that allows a system or service to access data or functionality provided by another system or service; 2[(aa) “Board” means the Insolvency and Bankruptcy Board of India established under section 188 of the Code;] (b) “certificate of registration” means a certificate of registration granted or renewed by the Board under section 210 read with these Regulations and the terms “registration” and “renewal” shall be construed accordingly; (c) “Code” means the Insolvency and Bankruptcy Code, 2016 (31 of 2016) and includes the rules, regulations, guidelines and directions issued thereunder; (d) “control” shall have the meaning assigned to it under section 2(27) of the Companies Act, 2013 (18 of 2013); 1Vide Notification No. IBBI/2016-17/GN/REG009, dated 31st March, 2017, published in the Gazette of India, Extraordinary, Part III, Sec.4, vide No. 452, dated 31st March, 2017 (w.e.f. 01.04.2017). 2 Inserted by Notification No. IBBI/2018-18/GN/REG034, dated 11th October, 2018 (w.e.f. 11-10-2018). 2 (e) “Governing Board” means the Board of Directors, as defined under section 2(10) of the Companies Act, 2013 (18 of 2013), of the company registered as an information utility; (f) “host bank” means the financial institution hosting the repayment account; (g) “independent director” shall have the meaning assigned to it under section 149(6) of the Companies Act, 2013 (18 of 2013); (h) “information” means financial information as defined in section 3(13); (i) “key managerial personnel” shall have the meaning assigned to it under section 2(51) of the Companies Act, 2013 (18 of 2013); (j) “net worth” shall have the meaning assigned to it under section 2(57) of the Companies Act, 2013 (18 of 2013); (k) “outsourcing” means contracting out services to a third party; (l) “public company” shall have the meaning assigned to it under section 2(71) of the Companies Act, 2013 (18 of 2013); (m) “repayment account” means the bank account to which a debtor is obliged to repay its debt, as recorded in an information utility; (n) “section” means a section of the Code; (o) “secure systems” shall have the meaning assigned to it in section 2(1)(ze) of the Information Technology Act, 2000 (21 of 2000); (p) “Schedule” means schedule attached to these Regulations; (q) “submission of information” includes updating of information, as the context may require; (r) “Technical Standards” means the standards laid down by the Board through guidelines issued under Regulation 13, from time to time; and (s) “user” means a person who avails of the services of an information utility. (2) Unless the context otherwise requires, words and expressions used and not defined in these Regulations, shall have the meanings assigned to them in the Code. 3 CHAPTER II REGISTRATION 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; 3[(e)***] 4[(f)***] (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 3Clause (e) omitted by Notification No. IBBI/2017-18/ GN/REG016 dated 29th September, 2017 (w.e.f. 29-09-2017). Clause (e), prior to omission, stood as “(e ) it is not under control of person(s) resident outside India;”. 4Clause (f) omitted by Notification No. IBBI/2017-18/ GN/REG016 dated 29th September, 2017 (w.e.f. 29-09-2017). Clause (f), prior to omission, stood as “(f) not more than 49% of its total voting power or its paid -up equity share capital is held, directly or indirectly, by persons resident outside India;”. 4 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. 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 Form A of the Schedule, 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 Form A of the Schedule, 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. 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; 5 (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 Form B of the Schedule, 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.