Regulations 3. Eligibility for registration.—

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;
• ⁴[(e)]
• ⁵[(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.

⁴Clause (e) omitted by Notification No. IBBI/2017-18/ GN/REG016 dated 29th September, 2017 (w.e.f. 29-09-2017). Clause (e), prior to omission, stood as “(e ) it is not under control of person(s) resident outside India;”.
_⁵Clause (f) omitted by Notification No. IBBI/2017-18/ GN/REG016 dated 29th September, 2017 (w.e.f. 29-09-2017). Clause (f), prior to omission, stood as “(f) not more than 49% of its total voting power or its paid -up equity share capital is held, directly or indirectly, by persons resident outside India;”.