Section 209 of The Insolvency and Bankruptcy Code, 2016.
Save as otherwise provided in this Code, no person shall carry on its business as information utility under this Code without a certificate of registration issued in that behalf by the Board.
Summary
- This provision bans any person or entity from running the business of an information utility without registering first.
- The registration certificate must be issued specifically by the Insolvency and Bankruptcy Board of India, which is the regulatory Board.
- This rule establishes registration as a mandatory requirement to ensure proper oversight of financial data collection.
- It protects the integrity of the insolvency process by allowing only authorized entities to act as information utilities.
Practical examples
FAQ
1. Can a private company act as an information utility under the Insolvency and Bankruptcy Code, 2016?
No, a private company or any person cannot carry on the business of an information utility under the Insolvency and Bankruptcy Code, 2016 unless they possess a valid certificate of registration issued by the Insolvency and Bankruptcy Board of India under Section 209.
2. Who has the authority to issue the registration certificate required under Section 209 of the Insolvency and Bankruptcy Code, 2016?
The Insolvency and Bankruptcy Board of India has the sole authority to issue the registration certificate required to function as an information utility under Section 209 of the Insolvency and Bankruptcy Code, 2016.
3. What happens if an unregistered entity provides financial information services in India under the Insolvency and Bankruptcy Code, 2016?
Any entity providing financial database and verification services as an information utility without a certificate of registration violates Section 209 of the Insolvency and Bankruptcy Code, 2016, and is subject to regulatory action and penalties by the Board.
Test yourself
Q1.Under Section 209 of the Insolvency and Bankruptcy Code, 2016, who is authorized to issue the certificate of registration to an information utility?
Q2.What is the main restriction imposed by Section 209 of the Insolvency and Bankruptcy Code, 2016 on entities intending to store and verify financial data?
Q3.Under the corporate insolvency framework of the Insolvency and Bankruptcy Code, 2016, are there any exceptions to the registration rule for information utilities under Section 209?
Q4.Which authority regulates and monitors the registration of information utilities under Section 209 of the Insolvency and Bankruptcy Code, 2016?