Section 7 in Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017
7. In-principle approval.
(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.
