The Insolvency and Bankruptcy Code, 2016 (Code) provides for a class of regulated professionals, namely, Insolvency Professionals (IP), who constitute one of the four key pillars of the insolvency regime, other three being the Adjudicating Authority, the Insolvency and Bankruptcy Board of India (Board), and the Information Utilities. The IPs play an important role in resolution, liquidation and bankruptcy processes of companies, LLPs, partnership firms and individuals. For example, when a company undergoes corporate insolvency resolution process (CIRP), an IP is vested with the management of its affairs and he manages the operations of the company as a going concern. He conducts the entire CIRP. Such responsibilities of an IP require the highest level of professional excellence and integrity.
Section 196(1)(d) and (e) of the Code vest the Insolvency and Bankruptcy Board of India (Board) with powers to specify by regulations standards for the functioning of IPs and lay down by regulations the minimum curriculum for the examination of the IPs for their enrolment as members of the insolvency professional agencies. Section 207(2) empowers the Board to specify the categories of professionals or persons possessing such qualifications and experience in the field of finance, law, management, insolvency or such other field, as it deems fit. In exercise of its powers, the Board has notified the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (IP Regulations). These regulations provide that an individual with ten years of experience as a member of the Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Cost Accountants of India or a Bar Council or with 15 years of experience in management is eligible for registration as an IP on passing the Limited Insolvency Examination.
Thus, an individual is eligible for registration as an IP if he has passed the Limited Insolvency Examination(Examination) subject to meeting other requirements. This examination is conducted daily from 100+ locations, online (computer-based in a proctored environment) with objective multiple-choice questions. The syllabus and the questions for the examination are finalized by an Examination Committee constituted by the Board. The Board commenced the examination on 31st December 2016. The second phase of examination with revised syllabus and question bank commenced on 1st July 2017. The third phase with further revised syllabus and question bank commenced on 1st January 2018. The revisions accommodate the new knowledge that is being generated from ongoing processes under the Code and the emerging practices and evolving jurisprudence.
The Board believes that public consultation enables collective choice and imparts relevance and legitimacy to decisions. Accordingly, the Board invites comments and feedback on the draft syllabus of the Fourth Phase of Limited Insolvency Examination, which is placed at Annexure to this note.
The Comments and Feedback may please be mailed at firstname.lastname@example.org latest by 15th April, 2018.Tags : Corporate Law