Executive Summary:
This notification from the Insolvency and Bankruptcy Board of India (IBBI) introduces the Insolvency and Bankruptcy Board of India Information Utilities Second Amendment Regulations, 2018. It amends the 2017 regulations concerning information utilities, focusing on the composition of the Governing Board and the appointment of the Managing Director. Existing information utilities must comply with the amended regulations 9 and 9A within one year from the commencement of these regulations.
Key Points / Main Content:
Governing Board Composition:
* The Governing Board shall consist of a managing director, independent directors, and shareholder directors.
* More than half of the directors shall be Indian citizens and residents in India.
* The managing director cannot be considered an independent or shareholder director.
* Employees of an information utility can be appointed as shareholder directors in addition to the managing director.
* The number of independent directors must be equal to or greater than the number of shareholder directors, and at least one independent director must be present at each board meeting.
* Independent directors must meet specific criteria regarding ability, integrity, expertise, and absence of conflicts of interest.
* Independent directors are nominated by the Board from a list proposed by the information utility.
* Independent directors may serve a maximum of two terms of three years each, or until the age of seventy, whichever is earlier, subject to performance review for the second term.
* A three-year cooling-off period applies before an independent director can become a shareholder director.
* An independent director shall be elected as the Chairperson of the Governing Board.
* Directors with a conflict of interest in any matter must disclose it and abstain from deliberation or decision-making on that matter.
Managing Director:
* The information utility will determine the Managing Director's qualifications, experience, appointment process, terms, and conditions, following the guidelines issued by the Board.
* The selection of the managing director must be through an open advertisement in a national newspaper.
* The maximum age for joining as Managing Director is fifty-five years, which may be relaxed up to sixty years with justification.
* An individual cannot serve as managing director after sixty-five years of age.
* The Managing Director's appointment tenure should be between three and five years, with a maximum of two terms.
* The appointment of the second term of Managing Director shall be conducted afresh.
* The appointment and remuneration require approval by a compensation committee formed by the Governing Board.
* Appointment, renewal, and termination of the Managing Director's service are subject to the Board's prior approval.
* The Managing Director can be removed or terminated by the Governing Board, with the Board's prior approval, for failing to comply with regulations or for misconduct.
* The Board may suo motu remove or terminate the Managing Director's services in the interest of stakeholders or the public interest, after providing a reasonable opportunity to be heard.
Compliance:
* Information utilities registered as of October 11, 2018, must comply with regulations 9 and 9A within one year.
Impact Analysis:
Information Utilities:
* Impact: Must restructure their Governing Boards and manage the appointment/reappointment of the Managing Director according to the new regulations.
* Action Required: Review and revise the composition of the Governing Board and appointment procedures for the Managing Director to ensure compliance within one year.
Governing Board Members (Existing and Prospective):
* Impact: Need to ensure they meet the eligibility criteria for their respective roles (independent, shareholder, or managing director).
* Action Required: Review eligibility criteria and disclose any conflicts of interest.
Insolvency and Bankruptcy Board of India (IBBI):
* Impact: Responsible for overseeing the implementation and compliance of the amended regulations.
* Action Required: Monitor compliance by information utilities and enforce the regulations as necessary.
Key Entities Referenced
Insolvency and Bankruptcy Board of India: A regulatory body established under the Insolvency and Bankruptcy Code, responsible for overseeing insolvency proceedings and regulating insolvency professionals and information utilities in India.
Insolvency and Bankruptcy Code, 2016: An Indian law that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner.
Insolvency and Bankruptcy Board of India Information Utilities Regulations, 2017: Regulations established by the Insolvency and Bankruptcy Board of India pertaining to Information Utilities.
Insolvency and Bankruptcy Board of India Information Utilities Second Amendment Regulations, 2018: Amendment regulations to the Insolvency and Bankruptcy Board of India Information Utilities Regulations, 2017.
New Delhi: The location where the notification was issued.
Official Gazette: The official government publication in which the regulations are published.
Governing Board: The board that governs the information utility.
Dr. M. S. Sahoo: Chairperson of the Insolvency and Bankruptcy Board of India.
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EXTRAORDINARY
Hkkx III—[k.M 4
PART III—Section 4
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PUBLISHED BY AUTHORITY
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No. 382] NEW DELHI, THURSDAY, OCTOBER 11, 2018/ASVINA 19, 1940
भभभभााााररररततततीीीीयययय (cid:8)(cid:8)(cid:8)(cid:8)ददददववववााााललललाााा औऔऔऔरररर शशशशोोोोधधधधनननन अअअअ(cid:18)(cid:18)(cid:18)(cid:18)ममममतततताााा बबबबोोोोडडडड (cid:22)(cid:22)(cid:22)(cid:22)
अअअअििििधधधधससससचचूूचचूू ननननाााा
नई (cid:1)द(cid:3)ली, 11 अ(cid:6) तूबर, 2018
भभभभााााररररततततीीीीयययय (cid:8)(cid:8)(cid:8)(cid:8)ददददववववााााललललाााा औऔऔऔरररर शशशशोोोोधधधधनननन अअअअ(cid:18)(cid:18)(cid:18)(cid:18)ममममतततताााा बबबबोोोोडडडड (cid:22)(cid:22) (cid:22)(cid:22)((((इइइइननननफफफफॉॉॉॉररररममममशशेेशशेे नननन यययय(cid:24)(cid:24)(cid:24)(cid:24)ूूूूटटटटििििललललटटटटीीीी)))) ((((िििि(cid:27)(cid:27)(cid:27)(cid:27)ततततीीीीयययय ससससशशशशंंंं ोोोोधधधधनननन)))) ििििववववििििननननययययमममम,,,, 2222000011118888
सससस..ंं..ंं आआआआईईईई....बबबबीीीी....बबबबीीीी....आआआआईईईई..../2222000011118888----11119999/जजजजीीीी....एएएएनननन..../आआआआरररर....ईईईई....जजजजीीीी.000033334444....—भारतीय (cid:1)दवाला और शोधन अ(cid:13)मता बोड,(cid:18) (cid:1)दवाला और
शोधन अ(cid:13)मता सिं हता, 2016 (2016 का 31) क(cid:20) धारा 240 के साथ प(cid:22)ठत धारा 196, (cid:24)ारा (cid:26)द(cid:27) शि(cid:30)य का (cid:26)योग करत े
"ए, भारतीय (cid:1)दवाला और शोधन अ(cid:13)मता बोड (cid:18) (इनफॉरमशे न य(cid:22)ू टिलटी) िविनयम, 2017 का और संशोधन करन े के िलए
िन&िलिखत िविनयम बनाता ह,ै अथा(cid:18)त:्—
1. (1) इन िविनयम का सिं (cid:13), नाम भारतीय (cid:1)दवाला और शोधन अ(cid:13)मता बोड (cid:18) (इनफॉरमशे न यू(cid:22)टिलटी) ( ि(cid:24)तीय
संशोधन) िविनयम, 2018 ह ै।
(2) य ेराजप. म/ उनके (cid:26)काशन क(cid:20) तारीख को (cid:26)वृ(cid:27) ह गे ।
2. भारतीय (cid:1)दवाला और शोधन अ(cid:13)मता बोड (cid:18) (इनफॉरमशे न य(cid:22)ू टिलटी) िविनयम, 2017 (िज5ह / इसम / इसके प7ात ्
मूल िविनयम कहा गया ह)ै के िविनयम 2 के उप-िविनयम (1) के खंड (क) के प7ात् िन&िलिखत खंड अतं ः;थािपत (cid:1)कया
जाएगा, अथा(cid:18)त्:—
‘(कक) “बोड”(cid:18) स े (cid:1)दवाला और शोधन अ(cid:13)मता संिहता, 2016 क(cid:20) धारा 188 के अधीन ;थािपत भारतीय (cid:1)दवाला
और शोधन अ(cid:13)मता बोड (cid:18)अिभ(cid:26)ेत ह;ै’ ।
3. मूल िविनयम के िविनयम 9 के ;थान पर िन&िलिखत उप-िविनयम रख ेजाएगं ,े अथात(cid:18) :्—
“9999.... शशशशााााससससीीीी बबबबोोोोडडडड (cid:22)(cid:22)(cid:22)(cid:22)कककक ससससररररंंंं चचचचननननाााा....—(1) शासी बोड (cid:18)िन&िलिखत से िमलकर बनेगा—
(क) (cid:26)बंध िनदशे क;
(ख) ;वतं. िनदशे क; और
5978 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(ग) शेयरधारक िनदशे क
पर5त ु आधे स ेHयादा िनदशे क भारत के नाग(cid:22)रक ह गे और भारत म /िनवासी ह गे ।
(2) (cid:26)बंध िनदशे क को ;वतं. िनदशे क या शेयरधारक िनदशे क नहI समझा जाएगा ।
(3) (cid:1)कसी इनफॉरमेशन य(cid:22)ू टिलटी के (cid:1)कसी कम(cid:18)चारी को उसके शासी बोड (cid:18)म / (cid:26)बंध िनदशे क के अित(cid:22)र(cid:30) िनदशे क के
Pप म /िनयु(cid:30) (cid:1)कया जा सकेगा (cid:1)क5त ुऐस ेिनदशे क को एक शेयरधारक िनदशे क समझा जाएगा ।
(4) ;वतं. िनदशे क क(cid:20) संSया शेयरधारक िनदशे क क(cid:20) संSया स ेकम नहI होगी:
पर5त ु शासी बोड (cid:18) क(cid:20) कोई भी बैठक कम से कम एक ;वतं. िनदशे क क(cid:20) उपि;थित के िबना आयोिजत नहI क(cid:20)
जाएगी ।
(5) कोई ;वतं. िनदशे क ऐसा Uि(cid:30) होगा—
(क) जो (cid:1)क योVय और ईमानदार Uि(cid:30) ह;ै
(ख) िजसके पास िव(cid:27), िविध, (cid:26)बंधन या (cid:1)दवाला के (cid:13)े. म/ िवशेषXता ह;ै
(ग) जो शासी बोड (cid:18)के िनदशे क का नातदे ार नहI ह;ै
(घ) िजसका इनफॉरमेशन य(cid:22)ू टिलटी या उसके (cid:1)कसी िनदशे क या उसक(cid:20) दस (cid:26)ितशत स े अिधक शेयर पूंजी
धा(cid:22)रत करने वाले (cid:1)कसी शेयरधारक के साथ ठीक पूव(cid:18)वतY दो िव(cid:27)ीय वषZ के दौरान या चालू िव(cid:27)ीय वष(cid:18)
के दौरान कोई धनीय संबंध नहI था या रहा ह;ै
(ङ) जो इनफॉरमेशन य(cid:22)ू टिलटी का शेयरधारक नहI ह;ै
(च) जो इनफॉरमशे न य(cid:22)ू टिलटी क(cid:20) दस (cid:26)ितशत से अिधक शेयर पजूं ी धा(cid:22)रत करने वाल ेशेयरधारक के (cid:1)कसी
िनदशे क बोड (cid:18)का सद;य नहI ह ै।
(6) ;वतं. िनदशे क, इनफॉरमशे न य(cid:22)ू टिलटी (cid:24)ारा (cid:26);तािवत नाम क(cid:20) सचू ी म / से बोड (cid:18) (cid:24)ारा नामिनदि\ शत (cid:1)कया
जाएगा ।
(7) कोई Uि(cid:30) (cid:26)^यके तीन वष(cid:18) या उसके भाग क(cid:20) अिधकतम दो काया(cid:18)विधय के िलए या स(cid:27)र वष(cid:18) क(cid:20) आयु तक,
इनम /से जो भी पूव(cid:18)तर हो, ;वतं. िनदशे क के Pप म/ काय(cid:18) कर सकेगा ।
(8) उप-िविनयम (7) म/ िन_द‘(cid:18) दसू री काया(cid:18)विध शासी िनकाय (cid:24)ारा (cid:26)थम काया(cid:18)विध के सतं ोष(cid:26)द काय(cid:18)-िनaपादन के
पुनbवल(cid:18) ोकन के अcयधीन हो सकेगा ।
(9) (cid:1)कसी ;वतं. िनदेशक के िलए उसी या एक अ5य इनफॉरमशे न य(cid:22)ू टिलटी म/ एक शेयरधारक िनदशे क बनने के
िलए तीन वष (cid:18)क(cid:20) उपशमन अविध लागू होगी ।
(10) िनदशे क, (cid:1)कसी ;वतं. िनदशे क का शासी बोड (cid:18)के अcय(cid:13) के Pप म/ चयन कर/गे ।
(11) ऐसा िनदशे क, िजसका शासी बोड (cid:18)या उसक(cid:20) (cid:1)कसी सिमित क(cid:20) (cid:1)कसी बैठक म /िवचाराथ (cid:18)(cid:26);तुत (cid:1)कए जाने वाल े
(cid:1)कसी िवषय म/ (cid:26)^य(cid:13)तः या अ(cid:26)^य(cid:13)तः कोई धनीय या अ5यथा िहत ह,ै सुसंगत प(cid:22)रि;थितय के उसक(cid:20) जानकारी म / आन े के
यथासभं व शीd ऐसी बैठक म / अपने िहत क(cid:20) (cid:26)कृित को (cid:26)कट करेगा और ऐसा (cid:26)कटन, यथाि;थित, शासी बोड (cid:18) या सिमित क(cid:20)
काय(cid:18)वािहय म/ अिभिलिखत (cid:1)कया जाएगा और वह िनदशे क उस िवषय क(cid:20) बाबत शासी बोड (cid:18) या सिमित के (cid:1)कसी िवचार-
िवमश(cid:18) या िविन7य म/ भाग नहI लेगा ।
9999कककक.... ####बबबबधधंंधधंं ििििननननददददेशेशेशेशकककक....—(1) (cid:26)^यके इनफॉरमेशन यू(cid:22)टिलटी, बोड (cid:18) (cid:24)ारा समय-समय पर जारी (cid:1)कए गए (cid:1)दशािनदश\ के
अधीन रहत े "ए, (cid:26)बंध िनदशे क क(cid:20) अहत(cid:18) ा और अनभु व, िनयुि(cid:30) क(cid:20) रीित, िनयुि(cid:30) के िनबंधन और शतZ और उसके चयन और
िनयिु (cid:30) स ेसहबe अ5य (cid:26)(cid:1)fया^मक औपचा(cid:22)रकताg का इस शत(cid:18) के अधीन रहते "ए अवधारण करेगी (cid:1)क—
(क) (cid:1)कसी Uि(cid:30) का (cid:26)बंध िनदशे क के Pप म/ चयन, कम स ेकम एक राiीय दिै नक समाचारप. के सभी सं;करण म/
खुले िवXापन के माcयम से (cid:1)कया जाएगा;¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
(ख) (cid:26)बंध िनदशे क के Pप म/ पदभार jहण करत े समय (cid:1)कसी Uि(cid:30) क(cid:20) आयु पचपन वष (cid:18) स े अिधक नहI होगी, जो
(cid:1)क शासी बोड (cid:18)(cid:24)ारा उसके िलए कारण अिभिलिखत करने के प7ात् साठ वष (cid:18)तक िशिथल क(cid:20) जा सकेगी; और
(ग) कोई Uि(cid:30) पसk ठ वष(cid:18) क(cid:20) आयु (cid:26)ा, करने के प7ात,् (cid:26)बंध िनदेशक के Pप म /काय (cid:18)नहI करेगा ।
(2) (cid:26)बंध िनदशे क के Pप म / (cid:1)कसी Uि(cid:30) क(cid:20) िनयिु (cid:30) कम से कम तीन वष (cid:18) और अिधकतम पांच वष(cid:18) के कायक(cid:18) ाल के
िलए होगी ।
(3) कोई Uि(cid:30) अिधकतम दो काया(cid:18)विधय के िलए (cid:26)बंध िनदशे क के Pप म /काय (cid:18)कर सकेगा ।
(4) (cid:1)कसी Uि(cid:30) क(cid:20) (cid:26)बंध िनदशे क के Pप म /दसू री काया(cid:18)विध के िलए िनयिु (cid:30) (cid:26)(cid:1)fया नए िसरे से क(cid:20) जाएगी ।
(5) (cid:26)बंध िनदशे क क(cid:20) िनयिु (cid:30) और उस े सदं ेय पा(cid:22)रmिमक का अनमु ोदन शासी बोड (cid:18) (cid:24)ारा ग(cid:22)ठत एक (cid:26)ितकर सिमित
(cid:24)ारा (cid:1)कया जाएगा ।
(6) (cid:26)बंध िनदशे क क(cid:20) िनयिु (cid:30), िनयुि(cid:30) का नवीकरण और उसक(cid:20) सेवाg का पयव(cid:18) सान बोड (cid:18) के पूव(cid:18) अनुमोदन के
अcयधीन होगा ।
(7) (cid:26)बंध िनदशे क, शासी बोड (cid:18)या बोड (cid:18)(cid:24)ारा जारी (cid:1)कए गए िनदेश , (cid:1)दशािनदश\ और अ5य आदशे या िनयम , संगम
अनुnछेद , इनफॉरमशे न य(cid:22)ू टिलटी क(cid:20) उप-िविधय को (cid:26)भावी करने म/ असफल होने पर या अवचार अथवा पद पर बन े रहने
क(cid:20) अ(cid:13)मता के आधार पर शासी बोड (cid:18)(cid:24)ारा बोड (cid:18)के पूव(cid:18) अनमु ोदन स ेसेवा से हटाए जाने या सेवा-समाि, के िलए दायी होगा ।
(8) बोड,(cid:18) ;व(cid:26)ेरणा, स े(cid:26)बंध िनदशे क को, इनफॉरमशे न य(cid:22)ू टिलटी के िहतधारक के िहत म/ या लोक िहत म/, सनु े जान े
का यिु (cid:30)य(cid:30)ु अवसर (cid:1)दए जाने के प7ात्, य(cid:1)द उपयु(cid:30) समझ,े हटा सकेगा या उसक(cid:20) िनयुि(cid:30) का पय(cid:18)वसान कर सकेगा ।
9999खखखख.... अअअअननननपपुुपपुु ााााललललनननन – भारतीय (cid:1)दवाला और शोधन अ(cid:13)मता बोड (cid:18) (इनफॉरमशे न यू(cid:22)टिलटी)(दसू रा संशोधन) िविनयम,
2018 के (cid:26)ारंभ क(cid:20) तारीख को रिज;pीकृत (cid:26)^येक इनफॉरमेशन यू(cid:22)टिलटी ऐसे (cid:26)ारंभ क(cid:20) तारीख स ेएक वष(cid:18) के भीतर िविनयम
9 और िविनयम 9क का अनपु ालन करेगी ।” ।
डॉ. एम. एस. साr, अcय(cid:13)
[िवXापन-III/4/असा./306/18]
(cid:24)(cid:24)(cid:24)(cid:24)टटटट%%%%पपपपणणणण:::: भारतीय (cid:1)दवाला और शोधन अ(cid:13)मता बोड (cid:18)(इनफॉरमशे न य(cid:22)ू टिलटी) िविनयम, 2017 भारत के राजप., असाधारण,
भाग III, खंड 4 म/ तारीख 31 माच(cid:18), 2017 क(cid:20) अिधसूचना स.ं आई.बी.बी.आई./2016-17/जी.एन./आर.ई.जी.009
(cid:24)ारा (cid:26)कािशत (cid:1)कए गए थ े और त^प7ात् तारीख 29 िसतsबर, 2017 क(cid:20) अिधसचू ना स.ं आई.बी.बी.आई./2017-
18/जी.एन./ आर.ई.जी. 016 और तारीख 27 माच(cid:18), 2018 क(cid:20) अिधसूचना स.ं आई.बी.बी.आई./2017-
18/जी.एन./आर.ई.जी.029 (cid:24)ारा उनम/ संशोधन (cid:1)कए गए थ े।
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 11th October, 2018
IIIINNNNSSSSOOOOLLLLVVVVEEEENNNNCCCCYYYY AAAANNNNDDDD BBBBAAAANNNNKKKKRRRRUUUUPPPPTTTTCCCCYYYY BBBBOOOOAAAARRRRDDDD OOOOFFFF IIIINNNNDDDDIIIIAAAA ((((IIIINNNNFFFFOOOORRRRMMMMAAAATTTTIIIIOOOONNNN UUUUTTTTIIIILLLLIIIITTTTIIIIEEEESSSS)))) ((((SSSSEEEECCCCOOOONNNNDDDD
AAAAMMMMEEEENNNNDDDDMMMMEEEENNNNTTTT)))) RRRREEEEGGGGUUUULLLLAAAATTTTIIIIOOOONNNNSSSS,,,, 2222000011118888
NNNNoooo.... IIIIBBBBBBBBIIII////2222000011118888----11119999////GGGGNNNN////RRRREEEEGGGG33334444....————In exercise of the powers conferred by section 196 read with
section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and
Bankruptcy Board of India hereby makes the following regulations further to amend the Insolvency
and Bankruptcy Board of India (Information Utilities) Regulations, 2017, namely:—4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
1111.... (1) These regulations may be called the Insolvency and Bankruptcy Board of India (Information
Utilities) (Second Amendment) Regulations, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.
2222.... In the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017
(hereinafter referred to as the principal regulations), in regulation 2, in sub-regulation (1), after
clause (a), the following clause shall be inserted, namely:-
‘(aa) “Board” means the Insolvency and Bankruptcy Board of India established under section 188 of
the Code;’.
3333.... In the principal regulations, for regulation 9, the following regulations shall be substituted,
namely:—
“9. CCCCoooommmmppppoooossssiiiittttiiiioooonnnn ooooffff tttthhhheeee GGGGoooovvvveeeerrrrnnnniiiinnnngggg BBBBooooaaaarrrrdddd————
(1) The Governing Board shall consist of—
(a) managing director;
(b) independent directors; and
(c) shareholder directors:
Provided that more than half of the directors shall be citizens of India and shall be residents
in India.
(2) The managing director shall not be considered either an independent director or a
shareholder director.
(3) Any employee of an information utility may be appointed as a director on its Governing
Board in addition to the managing director, but such director shall be deemed to be a
shareholder director.
(4) The number of independent directors shall not be less than the number of shareholder
directors:
Provided that no meeting of the Governing Board shall be held without the presence
of at least one independent director.
(5) An independent director shall be an individual—
(a) who is a person of ability and integrity;
(b) who has expertise in the field of finance, law, management or insolvency;
(c) who is not a relative of the directors of the Governing Board;
(d) who has or had no pecuniary relationship with the information utility, or any of its
directors, or any of its shareholders holding more than ten per cent. of its share capital,
during the immediately preceding two financial years or during the current financial year;
(e) who is not a shareholder of the information utility; and
(f) who is not a member of the Board of Directors of any of the shareholders holding more
than ten per cent. of the share capital of the information utility.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 5
(6) An independent director shall be nominated by the Board from amongst the list of names
proposed by the information utility.
(7) An individual may serve as an independent director for a maximum of two terms of three
years each or part thereof, or up to the age of seventy years, whichever is earlier.
(8) The second term referred to in sub-regulation (7) may be subject to a satisfactory
performance review of the first term by the Governing Board.
(9) A cooling off period of three years shall be applicable for an independent director to
become a shareholder director in the same or another information utility.
(10) The directors shall elect an independent director as the Chairperson of the Governing
Board.
(11) A director, who has any interest, direct or indirect, pecuniary or otherwise, in any matter
coming up for consideration at a meeting of the Governing Board or any of its
Committees, shall as soon as possible after relevant circumstances have come to his
knowledge, disclose the nature of his interest at such meeting and such disclosure shall
be recorded in the proceedings of the Governing Board or the Committee, as the case
may be, and the director shall not take part in any deliberation or decision of the
Governing Board or the Committee with respect to that matter.
9999AAAA.... MMMMaaaannnnaaaaggggiiiinnnngggg ddddiiiirrrreeeeccccttttoooorrrr....
(1) An information utility shall, subject to the guidelines issued by the Board from time to time,
determine the qualification and experience, manner of appointment, terms and conditions of
appointment and other procedural formalities associated with the selection and appointment of the
managing director, subject to the condition that—
(a) an individual shall be selected as managing director through an open advertisement in all
editions of at least one national daily newspaper;
(b) an individual at the time joining as managing director shall not be above the age of fifty-five
years, which may be relaxed by the Governing Board up to sixty years, after recording
reasons therefor; and
(c) an individual shall not serve as managing director after he has attained the age of sixty-five
years.
(2) The appointment of an individual as the managing director shall be for a tenure of not less than
three years but not exceeding five years.
(3) An individual may serve as managing director for a maximum of two terms.
(4) The process of appointment for the second term as managing director shall be conducted
afresh.
(5) The appointment and remuneration payable to the managing director shall be approved by a
compensation committee constituted by the Governing Board.6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(6) The appointment, renewal of appointment and termination of service of the managing director
shall be subject to prior approval of the Board.
(7) The managing director shall be liable for removal or termination of services by the Governing
Board, with the prior approval of the Board, for failure to give effect to the directions, guidelines and
other orders issued by the Governing Board or the Board, or the rules, the articles of association or
bye-laws of the information utility or on the ground of misconduct or incapacity to continue in office.
(8) The Board may suo motu remove or terminate the services of the managing director, if it deems
fit, in the interest of stakeholders of the insolvency resolution process or in the public interest, after
giving a reasonable opportunity of being heard.
9999BBBB.... CCCCoooommmmpppplllliiiiaaaannnncccceeee....————Every information utility registered as on the date of commencement of the
Insolvency and Bankruptcy Board of India (Information Utilities) (Second Amendment) Regulations,
2018, shall comply with regulations 9 and 9A, within one year from the date of such
commencement.”.
Dr. M. S. SAHOO, Chairperson
[ADVT.-III/4/Exty./306/18]
NNNNooootttteeee:::: The Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017 were
published vide notification No. IBBI/2016-17/GN/REG009 on 31st March, 2017 in the Gazette
of India, Extraordinary, Part III, Section 4, and were subsequently amended vide No.
IBBI/2017-18/GN/REG016, dated 29th September, 2017 and vide No. IBBI/2017-18/GN/REG
029, dated 27th March, 2018.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.