Question

Q. Which of the following is/are the functions of “Information Utility” as per the Insolvency and Bankruptcy code, 2016?

Which of the above given statements is/are correct?

• A. 1 only
• B. 1 and 3 only
• C. 3 only
• D. 1, 2 and 3

Answer 1

The correct option is A 1 only

Explanation:

Statement 1 is correct: Information utilities have to create and store financial information in a universally accessible format.

Statement 2 and 3 are incorrect: It is the “Insolvency and Bankruptcy Board of India'' to register and specify by regulations standards for the functioning of insolvency professional agencies, insolvency professionals and information utilities in the country.

Extra information:
Following are the other functions of “Information Utilities”:

• Accept electronic submissions of financial information from persons who are under obligations to submit financial information under sub-section (1) of section 215, in such form and manner as may be specified by regulations;
• Accept, in specified form and manner, electronic submissions of financial information from persons who intend to submit such information;
• Meet such minimum service quality standards as may be specified by regulations;
• Get the information received from various persons authenticated by all concerned parties before storing such information;
• Provide access to the financial information stored by it to any person who intends to access such information in such manner as may be specified by regulations;
• Publish such statistical information as may be specified by regulations;
• Have interoperability with other information utilities.