The IBC ecosystem includes Information Utilities (IUs) regulated by IBBI. What is the primary function of an Information Utility in the IBC framework?

Information Utilities (IUs) are infrastructure entities established under the IBC to solve a fundamental challenge in insolvency proceedings — the asymmetry and incompleteness of financial information about corporate debtors and their debts. An IU collects, authenticates, and stores financial information such as: financial contracts between parties, details of secured and unsecured creditors, information on defaults, and other debt-related data. This information can be accessed by Insolvency Professionals, NCLT, IBBI, and other authorised parties during the CIRP. By having authenticated, pre-verified information available in a central repository, IUs reduce the time and cost spent on information gathering during insolvency proceedings, which is critical given the 270-day (extendable) CIRP timeline. National e-Governance Services Limited (NeSL) is currently the only operational IU in India.