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India’s first information utility goes live

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India’s first information utility (IU), a one-stop shop for details on all financial transactions of lenders, information utilities under the insolvency and bankruptcy, has got a go-ahead. On Tuesday, the Insolvency and Bankruptcy Board of India (IBBI) granted it a renewal registration from September 25, 2017 to September 24, 2022.

S Ramann, IAAS in the rank of Additional Secretary and Former Executive Director of SEBI, is Managing Director and Chief Executive Officer of NeSL. IBBI Chairman M S Sahoo, a former SEBI official, had announced recently that setting up of an IU will be a game changer in the market. Finance Minister Arun Jaitley has also been asking the industry and IBBI to implement bankruptcy law in a time- bound manner.

Suvan Law Advisors along with SNG & Partners are the law firms which are advising NeSL on this landmark phase of IBC while Indira Gandhi Institute of Development Research (IGIDR) is the knowledge partner to IU.

NeSL was set up by leading banks and financial institutions such as SBI, LIC, Canara Bank, BOB, HDFC, ICICI Bank and Axis Bank. Currently, NeSL operates from Mumbai and Bengaluru.

Information Utility under the Insolvency and Bankruptcy Code is expected to provide level playing field in the financial contracts by storing facts of borrowing, default and security interest with safeguards like authenticating the terms of contract, digital storage of details by IU in a central server with information security policies wrapped around, and providing effective retrieval facilities for Insolvency Professionals/DRT/NCLT to proceed with their roles in time bound manner.

As per IBC, currently, the corporate Insolvency resolution process is notified and the processes covering bankruptcy for Individuals and Partnership firms are expected to be notified in due course. NESL will cater to service needs of Individuals, partnership, companies etc. in line with the provisions of IBC and offer core services and value-added services as per the IBBI (IU) regulations.