The Insolvency and Bankruptcy Code, 2016 came to be enacted only a few years back but with clear and vital objectives. The need for the Code was felt because:
- It binds the law for re-organization and insolvency resolution for corporate persons, partnership firms and individuals all together, or what one may call unifies the rules.
- It’s different from a debt-recovery mechanism but it rather tries to help the conglomerate or the individuals to bring the partnership or company or venture as the case maybe on the right track. Thus, helping to construct a better economy.
- To establish the Insolvency and Bankruptcy Board of India (IBBI).
Who is an Insolvency Professional?
An Insolvency Professional (IP) is a term defined under Section 3(19) of the Insolvency and Bankruptcy Code, 2016 and states that “insolvency professional means a person enrolled under Section 206 with an insolvency professional agency as its member and registered with the Board as an insolvency professional under Section 207”
Further, Section 3(20) states that “insolvency professional agency means any person registered with the Board under section 201 as an insolvency professional agency”
Criteria to be an Insolvency Professional
Part IV Chapter IV of the Insolvency and Bankruptcy Code, 2016 deals with Insolvency Professional in depth and certain eligibility criteria are provided under-
- Section 206 requires an IP to be enrolled as a member of an Insolvency Professional agency and registered with the Board.
- The official website of IBBI presents a platform to enroll for Limited Insolvency Examination (“LIE”) or the National Insolvency Examination (“NIE”).
- The Limited Insolvency Examination requires 15 years of experience after graduation if one has been working at management posts, otherwise an experience of 10 years is required if one is a CA, CS, CMA or even an advocate.
The board categorizes the professionals on the basis of qualifications and experience in the varying fields like finance, law, management, insolvency or such other field.
The Graduate Insolvency Programme
The better option for people who do not have the requisite experience is to opt for the Graduate Insolvency Programme (GIP). A person completing the GIP is eligible to be registered as an IP under the Insolvency and Bankruptcy Code 2016, without having to wait for 10-15 years to acquire the experience as required by the Code at present.
Not just that, the program is specifically beneficial for people who elect to become academics or researchers or work in media houses.
Further details and notifications could any time be tracked at the official website of IICA i.e., The Indian Institute of Corporate Affairs established by the Ministry of Corporate Affairs (MCA), Government of India.
Website Link – https://iica.nic.in/gip/programme.aspx