What is an Information Utility
NeSL constitutes a key pillar of the insolvency and bankruptcy ecosystem of India, the other three being the Adjudicating Authority (National Company Law Tribunal and Debt Recovery Tribunal), the Insolvency and Bankruptcy Board of India (IBBI) and Insolvency Professionals (IPs).
Information Utility is an institution with multiple objectives
- To provide undisputed information for initiation of insolvency process
- IU serves as a credit and contract Repository
- Accept financial information from financial or operational creditors or debtors
- Financial information will be authenticated by all the parties of the debt and stored for use as evidence in any legal process
- IU is designed as a two-way communication tool between creditors and debtors for submission and authentication with recording of disputes
- IU is a Cost-effective tool for proof of borrower, borrowing, security interest and default.