REGULATORY UPDATE: INSOLVENCY AND BANKRUPTCY BOARD – NOTIFICATION OF IBBI (INFORMATION UTILITIES) (AMENDMENT) REGULATIONS, 2017

The IBBI has notified IBBI (Information Utilities) (Amendment) Regulations, 2017 amending the shareholding limit of the Information Utility which is registered with the IBBI to carry on the business of information utility. Prior to this notification, a person should not hold more than 10% of paid up equity share capital or voting power of an information utility, while allowing certain specified persons to hold up to 25%. Effective from this notification,

(a) a person may, directly or indirectly, either by itself or together with persons acting in concert, hold up to fifty-one percent 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 ten percent of the paid-up equity share capital, may hold up to hundred percent 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.

Further, with this notification, more than half of the board of directors of the information utility shall be comprised Indian nationals and resident Indians.

Source:http://pib.nic.in/newsite/mbErel.aspx?relid=171414

 

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