Reglation 3. Eligibility for registration
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No person shall be eligible to be registered as an information utility unless it is a public company and – (a) its sole object is to provide core services and other services under these Regulations, and discharge such functions as may be necessary for providing these services; (b) its shareholding and governance is in accordance with Chapter III; (c) its bye-laws are in accordance with Chapter IV; (d) it has a minimum net worth of fifty crore rupees; (e)*** (f)*** (g) the person itself, its promoters, its directors, its key managerial personnel, and persons holding more than 5%, directly or indirectly, of its paid-up equity share capital or its total voting power, are fit and proper persons: Explanation: For determining whether a person is fit and proper under these Regulations, the Board may take account of relevant considerations, including- (i) integrity, reputation and character, (ii) absence of conviction by a court for an offence: Provided that a person may be considered ‘fit and proper’ if he has been sentenced to imprisonment for a period of less than six months; Provided that a person shall not be considered ‘fit and proper’ if he has been sentenced to imprisonment for a period (a) of not less than six months, but less than seven years and a period of five years has not elapsed from the date of expiry of the sentence, or (b) of seven years or more. (iii) absence of restraint order, in force, issued by a financial sector regulator or the Adjudicating Authority, and (iv) financial solvency. VL Note : – |
Reglation 4. Application for registration or renewal thereof
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(1) A person eligible for registration as an information utility may make an application to the Board in Form A of the Schedule, along with a non-refundable application fee of five lakh rupees. (2) An information utility seeking renewal of registration shall, at least six months before the expiry of its registration, make an application for renewal in Form A of the Schedule, along with a non-refundable application fee of five lakh rupees. (3) The Board shall acknowledge an application made under this Regulation within seven days of its receipt. VL Note : – |
Reglation 5. Disposal of application
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(1) The Board shall examine the application, and give an opportunity to the applicant to remove the deficiencies, if any, in the application. (2) The Board may require the applicant to submit, within reasonable time, additional documents or clarification that it deems fit. (3) The Board may require the applicant to appear, within reasonable time, before the Board in person, or through its authorised representative for clarifications required for processing the application. (4) If the Board is satisfied, after such inspection or inquiry as it deems necessary, that the applicant- (a) is eligible under Regulation 3; (b) has the technical competence and financial capacity required to function as an information utility; (c) has adequate infrastructure to provide services in accordance with the Code; (d) has in its employment, persons having adequate professional and other relevant experience, to provide services in accordance with the Code; and (e) has complied with the conditions of the certificate of registration, if he has submitted an application for renewal under Regulation 4(2) it may grant or renew a certificate of registration to the applicant as an information utility in Form B of the Schedule, within sixty days of receipt of the application, excluding the time given by the Board for removing the deficiencies, or presenting additional documents or clarifications, or appearing in person, as the case may be. within thirty days of receipt of explanation. (5) If, after considering an application made under Regulation 4, the Board is of the prima facie opinion that the registration ought not to be granted or ought not to be renewed, or be granted or renewed with additional conditions, it shall communicate the reasons for forming such an opinion within forty-five days of receipt of the application, excluding the time given by the Board for removing the deficiencies, presenting additional documents or clarifications, or appearing in person, as the case may be. (6) The applicant shall submit an explanation as to why its application should be accepted within fifteen days of the receipt of the communication under sub-regulation (5), to enable the Board to form a final opinion. (7) After considering the explanation, if any, given by the applicant under sub-regulation (6), the Board shall communicate its decision to- (a) accept the application, along with the certificate of registration; or (8) The order rejecting an application for renewal of registration shall require the information utility to- (a) discharge any pending obligations; VL Note : – |
Reglation 6. Conditions of registration
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(1) The certificate of registration shall be valid for a period of five years from the date of issue. (2) The certificate of registration shall be subject to the conditions that the information utility shall– (a) abide by the Code; (b) abide by its bye-laws; (c) at all times after the grant of the certificate continue to satisfy the requirements under Regulation 5(4); (d) pay a fee of fifty lakh rupees to the Board, within fifteen days of receipt of intimation of registration or renewal from the Board, as applicable; (e) pay an annual fee of fifty lakh rupees to the Board, within fifteen days from the date of commencement of the financial year: Provided that no annual fee shall be payable in the financial year in which an information utility is granted registration or renewal, as the case may be: Provided further that without prejudice to any other action which the Board may take as it deems fit, any delay in payment of fee by an information utility shall attract simple interest at the rate of twelve percent per annum until paid. Illustration (a) Where an information utility is registered on 1st December, 2016, it shall pay a fee of fifty lakh rupees within fifteen days of receipt of intimation of registration. No further payment is required to be made for the financial year 2016-17. The annual fee of fifty lakh rupees for the financial year 2017-18 becomes due on 1st April, 2017 and the same shall be paid on or before 15th April, 2017 and so on. (b) Where the annual fee is paid on 20th April, 2017, interest at the rate of twelve percent per annum shall be paid for the delay of five days. (a) seek prior approval of the Board for- (i) the acquisition of shares or voting power by a person, which taken together with paid-up equity shares or voting power, if any, held by such person, entitles him to hold more than five per cent, directly or indirectly, of the paid-up equity share capital or total voting power; (ii) a change of control; (iii) a merger, amalgamation or restructuring; (iv) sale, disposal, or acquisition of the whole, or substantially the whole, of its undertaking; (v) voluntary liquidation, dissolution, or any similar action involving the discontinuation of its business. (b) intimate the Board if a person holding more than five per cent, directly or indirectly, of its paid-up equity share capital or total voting power ceases to hold at least five per cent, directly or indirectly, of its paid-up equity share capital or total voting power, within fifteen days from such cessation; (c) take adequate steps for redressal of grievances; (d) take over information stored with other information utilities on the directions of and in the manner directed by the Board, and provide core services to their users; and (e) abide by such other conditions as may be stipulated by the Board. VL Note : – |
Reglation 7. In-principle approval
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(1) Any person who seeks to establish an information utility may make an application for an in-principle approval, demonstrating that the conditions in sub-regulation (2) are satisfied, along with a non-refundable application fee of five lakh rupees. (2) If the Board is satisfied, after such inspection or inquiry as it deems necessary, that- (a) the applicant is a fit and proper person; and (b) the proposed or existing company which may receive registration would be able to meet the eligibility criteria under Regulation 3, it may grant in-principle approval which shall be valid for a period not exceeding one year and be subject to such conditions as it deems fit. (3) During the validity of in-principle approval, the company referred to in sub-regulation 2(b) may make an application for a certificate of registration as an information utility to the Board in accordance with Regulation 4, but shall not be required to pay the application fee for registration. VL Note : – |