Companies LawLegal Updates

IBBI amends Reg. 8(2) pertaining to shareholding along with other Reg. under IBBI (Information Utilities) (Amendment) Reg., 2017

IBBI Update

Insolvency and Bankruptcy Board of India amends IBBI (Information Utilities) (Amendment) Regulations, 2017 (‘ Principal Regulations’) wherein the Board has omitted Regulation 3 (e ) and (f). Reg. 3 mentions about the eligibility criteria for the registration of as an information utility.

IBBI further amends about the shareholding by substituting Reg. 8 (2) with :

“(2) Notwithstanding anything to the contrary contained in sub-regulation (1) –

(a) a person may, directly or indirectly, either by itself or together with persons acting in concert, hold up to 50 % of the paid-up equity share capital or total voting power of an information utility up to three years from the date of its registration; or

(b) an Indian company, (i) which is listed on a recognised Stock Exchange in India, or (ii) where no individual, directly or indirectly, either by himself or together with persons acting in concert, holds more than 10 % of the paid-up equity share capital, may hold up to 100 % of the paid-up equity share capital or total voting power of an information utility up to three years from the date of its registration.

Provided that the information utility is registered before 30th September, 2018.”

Thereafter, inserts Reg. 9 (1A) which specifies that more than half of the directors of an information utility should be Indian nationals and residents in India.

On March 31, 2017 IBBI (Information Utilities) (Amendment) Regulations, 2017 were issued under vide notification No. IBBI/2016- 17/GN/REG009 with the aim to provide the framework for registration and regulation of information utilities.

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