E-Auction Under IBC
Online auctions, also known as e-Auctions, aid in price determination and assist sellers in obtaining the best possible price for their goods or services.
Offline auctions are expensive and take a lot of time and money. It's also bothersome for bidders to be physically present for the bidding at the designated time and location, especially when they know there can only be one winner and everyone else will have to leave.
Online auctions are very economically efficient and save both bidders and sellers money and time. The entire eAuction procedure is transparent and competent, guaranteeing accurate price discovery and maximum participation because bidders can take part from any location in the world.
Features of E-Auction
❖ Reserve/Base Price: Reverse or Base price is the minimum price of any good/service that a seller demands. IP Support’s Platform provides the seller the right to set a base price than the market and eauction bank price. Only the bids higher than the base price are accepted
❖ Incremental Value: IIncremental Value is some amount of increase in the price of the bid that the second bidder has to make in order to make their bid higher than the previous bidder. The seller gets to set a minimum incremental value.
❖ Automatic Time Extension: Our platform provides an Automatic Time Extension feature in our system which helps in keeping the bidding process fair for everyone. Bidders try to bid at the last minute with the highest bid in order to buy the asset. With this feature, if any bidder places a bid in the last 5-10 mins of the E-Auction process, the time period extends with the equivalent time.
❖ Reverse Auction: In reverse auction the bidder bids lower than the previous bids.
❖ Currency: The seller has the liberty of choosing which currency the bidding will be done in like, Indian Rupee; USD; ASD; Euro, etc.
❖ Unit: Here, the seller gets to decide the unit of money like, Millions; Billions; Crore; Thousand, etc. for the item or any property for sale.
❖ Other Features: Some of the other features of E-Auction are similar to E-Voting service
A. Listing: To promote interest, the foremost step is to list the specifics of the items/ Property for sale in the auction and then advertise/inform as many people as you can about them. The information about the eAuction is first provided in this first section on the IP support website under the eAuction section Which is contained from the official sites or E- Auction banks. Here, the following information is mentioned:
❖Title of the item up for auction
❖Time of the Auction
❖Name, email address, and mobile number of the contact
❖Description and other information about the items are provided as an attachment.
The listing's goals are to notify potential bidders about the auction, spark interest, and give them time to learn more and conduct their due diligence. The prospective bidders submit their interest in the process's last phase.
B.Bidding: The platform's E-auction, where bidders place their bids for the Assets and Products like Vehicles , Property for auction by bank, commercial property for sale, etc. the second and last step. With the assistance of our team, the seller sets up the eAuction platform before the commencement of the bidding. The following details are required for setting up:
- Name and information about the item up for auction
- Lowest incremental value
- Date, time, and duration of the event
- Time Period of the Auction
- List of potential bidders, including names and individual email addresses or phone numbers
The entire bidding procedure is automated and real-time. Neither the platform managers nor the seller needs to step in. The seller can monitor the development of the auction in real time. The highest bid received up until that point can be tracked in real-time by the bidders, who can then determine whether to raise their offer accordingly. When a bid is accepted or superseded, the system will send an email to the bidder. The bidder cannot see who the other bids are or what they are offering. Only the highest bid is visible to them. Once the E-Auction is done, the reports and summary of the event is recorded and kept for future references
The complete data about the bidder, his bid amount, IP address, and the time of the bid is delivered to the seller in real-time.
Benefits of E-Auction
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