What is Information Utility? 

In order to authenticate the various financial data provided by the parties in resolution, the IBC code has set up a professional organization called as Information Utility. An Information Utility is set up to do the following:

• Collect financial data from the parties,
• Get the financial data authenticated by other parties connected to the debt &
• Store the financial data and provide access to the Resolution Professionals, Creditors and other stake holders in the Insolvency Resolution Process, which shall help all stake holders in making decisions based on the same information.

Information Utility will help in storing authenticated financial information of registered users which shall be readily available for verification.

Why Information Utility was set up?

The main objective behind the Information Utility was to provide high quality authentic and verified data to the creditors, Insolvency Professionals, Adjudicating Authority etc. The availability of readily available information shall help to speed up the resolution procedure. Also, the Certificate & data provided by Information Utilities can be presented before National Company Law Tribunal (NCLT)/ Debts Recovery Tribunal (DRT) as a legal evidence for any proceedings. 

What are the obligations to be followed by Information Utility?

The main functions of an Information Utility to:

1. Store information in a universally acceptable format
2. Accept the electronic submissions of financial information from the parties as be specified by Regulations.
3. Maintain the minimum service quality standards as specified by the Regulations.
4. Authenticate the information from concerned parties before storing such information.
5. Provide access to the financial information stored by it to any concerned parties.
6. Publish statistical information as specified by Regulations
7. Have inter-operability with other information utilities

How to register yourself as a user in the Information Utility?

1. To register as User, a form has to be filled up and submitted electronically. The user has to keep the following documents ready for the registration:

•  PAN number of the Entity
• Aadhaar Number of the person authorized to represent the entity for submission of information to NeSL etc.,
• Pre-signed copy of the Authority Letter from the Entity / Board Resolution authorizing the person to represent the entity for submission of info etc.,
• Digital Signature Certificate of the Entity (For authenticating the data & documents) / e-Signature of the Authorized Representative.

2. After the submission of the form, the user has to deposit the Service fee through electronic remittance (NEFT) to the designated account.

3. Once the Registration process is completed and the prescribed fee is collected, the NeSL would register the user and give a User ID by way of e mail & Pass word by way of SMS to the registered mobile number for accessing the NeSL Link. 

Who can submit the information to the Information Utility?

The following shall be required to submit the information:

a)    A financial creditor shall submit financial information and particulars of assets against which any security interest has been created.

b)    An operational creditor may submit financial information as may be specified.

c)    An insolvency professional may submit reports, registers and minutes of any insolvency resolution, liquidation or bankruptcy proceedings for storage.

d)    Any other party connected to the debt such as Co-Applicant, Co-borrower, and Guarantor etc.

How to Authenticate/Submit Information to Information Utility (IU)?

 The financial information submitted by one of the parties in a debt needs to be verified & authenticated by all other parties connected to the debt by affixing their digital signature or Aadhar based e-signature.  This information shall be then stored and can be accessed by during the Insolvency Resolution Process. 

The procedure for submitting the information is as follows:

• Initially, the Creditor shall be required to submit the information in Form C as prescribed in the regulation.
• Once the information is submitted, the IU shall assign a Unique Identifier to the information and acknowledge the receipt.
• The IU shall then authenticate and verify the information by delivering the information to the debtor for seeking confirmation/disagreement.

The confirmation/disagreement has to be made by reminding the debtor 3 times by allowing 3 days each time for the debtor to respond.

• Once the information is authenticated, the status of authentication of information shall be recorded.
• Next, the information utility shall send the status of authentication to the person who submitted the information.
• The person who authorizes the information is required to affix his digital signatures certificate or use the Aadhar based e-sign for verifying his identity.

How to Register as Information Utility?

To register as an Information Utility, the person must be first eligible to apply for the registration. Only Public Companies meeting the following conditions shall be eligible for registration:

1. The only object of the company is to provide core services and other services and discharge such functions as mentioned in the regulation.
2. It’s shareholding and governance is in accordance with Chapter III;
3. t’s bye-laws are in accordance with Chapter IV;
4. It has a minimum net worth of 50 crore rupees;
5. 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:

The eligible person as mentioned above must make an application in Form A of the regulation along with a non-refundable application fee of 5 lakh rupees.

Once the application is examined, the authority may ask for any clarification if required within a time period. Once the clarification is given, the application shall be further processed and a certificate of registration shall be given or may be rejected depending on the application.