Section 7(2) in Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017
(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.
