Insolvency Board notifies IU and voluntary liquidation guidelines
By Team Legistify / 2017-04-07

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The Insolvency and Bankruptcy Board of India ( IBBI ) last week notified two extremely crucial pieces of the (insolvency) puzzle.

On 31st March, 2017, the regulations relating to Information Utilities ( IU ) and Voluntary Liquidation were notified by the government. The simultaneous notification of both, however, is not because one is dependent on the other. Both regulations have come into effect from 1st April, 2017.

Information Utilities

This is the third leg of the stool envisaged in the Code, after insolvency professionals and insolvency professional agencies. Provisions relating to IUs are contained in Chapter 5 of the Insolvency and Bankruptcy Code, 2016 ( Code ).

IUs essentially act as a data storage entity that collects information from various sources and stores it in an electronic format in a safe and secure manner. The IU will ensure that when a financial firm uploads information about its (pending) financial liabilities, such information is verified by all necessary parties to ensure its authenticity.

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