IBBI issues amendments to the Information Utilities Regulations

IBBI issues amendments to the Information Utilities Regulations.

The amendment was issued in exercise of the powers conferred by section 196, 213, 214, 215 read with section 240 of the Insolvency and Bankruptcy Code, 2016.

The Insolvency and Bankruptcy Board of India recently issued amendments to the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 intending to improve the availability of information.

The Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 were published vide notification No. IBBI/2016-17/GN/REG009 dated 31st March 2017 and were last amended by the Insolvency and Bankruptcy Board of India (Information Utilities) (Amendment) Regulations, 2021 published vide notification No. IBBI/2021-22/GN/REG072, dated the 13th of April, 2021.

The noteworthy amendments are as follows:

1. Before filing an application to initiate the corporate insolvency resolution process under section 7 or 9, as the case may be, the creditor shall file the information of default, with the information utility and the information utility shall process the information to issue a record of default in accordance with regulation 21

2. The disciplinary proceedings shall be conducted in accordance with the provisions of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017

3. In the earlier Regulations, only the creditor was required to submit its claims to the Resolution Professional, however in the new amendment, the corporate debtor or promoter or any associate thereof is bound to submit its claims to the Resolution Professional in the formate prescribed.

4. The Financial and Operational Creditors will have to furnish their PAN number and email ID while filing an application under Section 7 or 9 of IBC.

The amendment has come into force on 14 June 2022.