What is NESL: Government body National e-Governance Services Limited (NeSL) has received in-principle approval to establish Information Utility (IU) in India – first under the Insolvency and Bankruptcy Code (IBC).
Under the IBC, the Regulatory Insolvency and Bankruptcy Board of India (IBBI) registers and regulates information utilities that receive and store financial information in a universally accessible format certified by registrar creditors.
What is NESL?
National e-Governance Services Limited (NeSL) has received final registration to become the first Information Utility (IU). State Bank of India, Life Insurance Corporation of India, Canara Bank, Bank of Baroda, HDFC, ICICI Bank, Axis Bank have set up NeSL. Former SEBI Executive Director S Raman has been appointed as the MD of NeSL.
The information utility, under the Insolvency and Bankruptcy Code, is expected to provide a level playing field in a financial contract, with security measures such as certifying the terms of the contract as digital storage, lending, default, and security interests by the IU in a central server By storing facts.
Information security policies are wrapped around, providing adequate recovery facilities for Insolvency professionals, DRTs, and NCLTs to move forward with their roles promptly.
Suwon Law Advisors and SNG & Partners are law firms advising NC in this historical phase of IBC.
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What is the Purpose of NeSL?
what is the purpose? NeSL is a legal evidence repository for information about all financial contracts; Land and lending of financial institutions. It stores financial information, allowing defaults to be easily established, verified, and processed quickly under the invalidation mechanism.
An information utility will have certified and verified financial information, and it will be up to all financial creditors, operating creditors, and corporate debtors to provide information to the entity.
Nesl is owned and promoted by other public institutions such as State Bank of India, Life Insurance Corporation of India, Canara Bank, Bank of Baroda, ICICI Bank, CDSL, HDFC, Axis Bank, Union Bank of India, and NABARD.
Once established, such IUs will help the National Company Law Tribunal (NCLT) in the decision and implementation of the IBC.
“We are pleased to move ahead of the regulator recently. Within strict timelines, we are also striving to implement the infrastructure and commitments under the IBC and are exploring various synergies with banks, financial institutions, and Indian Banks’Banks’ Association (IBA) in this regard, “S. Ramanan, MD & CEO, said NeSL.
Within a year, we expect borrowers and creditors to be fully functional, added the senior civil servant, who previously served as the executive director of the Securities and Exchange Board of India (SEBI).
Suwon Law Advisors, along with SNG & Partners, is a law firm assisting and advising NSL.
How do you Certify NeSL?
Login to the NeSL IU portal using the credentials provided to you or register yourself with Aadhaar and OTP. Suppose you are already registered as a user. If not registered, please register as a one-time process to get your login credentials first. Provide all the details in case of new registration.