Insolvency Code: NeSL Becomes India’s First Information Utility
National E-Governance Services becomes India’s first information utility.
National E-Governance Services registered with the Insolvency and Bankruptcy Board of India as country’s first information utility. Under the Insolvency and Bankruptcy Code, an information utility is tasked with storing, authenticating and verifying financial information received from companies and their creditors.
The financial information includes:
- debt of a person
- liabilities when the person is solvent
- assets of a person over which security is created
- instances of default by a person against any debt
- records of the balance sheet and cash flow statements of a person
This information has to be accepted by an information utility in a specified electronic format, accurately recorded, authenticated and verified and then made available to specified persons.
The “legal evidence repository” body will ensure that the 180 and 270-day timeline under the Insolvency and Bankruptcy Code is adhered to, S Ramann, managing director and CEO of National E-Governance Services (NeSL) told BloombergQuint.
As next steps, we will get information from banks and hand it over to the counter parties, settle disputes as to amounts, authenticate the history of financial contracts and any payments along the way.S Ramann, MD & CEO, National E-Governance Services
The financial information stored by an information utility will be used to establish defaults and verify claims, he added.
NeSL’s board of directors include:
- N Rangachary, Independent Director and Chairman
- Nivedita Haran, Independent Director
- S Sadagopan, Independent Director
- Ajay Shah, Independent Director
- TS Vishwanath, Independent Director
- Sekar Karnam, Director
- Gurpreet Singh Chawla, Director
- P Sanker, Director
- S Ramann, Managing Director