The New Insolvency and Bankruptcy Code, 2016 stipulates the maximum time to be taken to liquidate a company to 180 days with an one time extension of 90 days, while earlier it used to take at least four years for the same. With the new law, arises the new opportunities for youth in the form of insolvency professionals. To cater to the huge insolvency and liquidation market and produce insolvency professionals, the Institute of Company Secretaries of India (ICSI) has set up a Insolvency Professionals Agency and also allotted about H14 crore to train graduates to become insolvency professionals.
What is the role of an insolvency professional?
He/She takes up matters relating to insolvency of individuals, partnerships and liquidation of companies.
He advises and monitors his clients in matters related to insolvency, bankruptcy and liquidation.
What qualifications do you need to practice as an insolvency professional?
The Institute of Company Secretaries of India (ICSI) has set up an Insolvency Professionals Agency (IPA). Insolvency professional has to get registered with ICSI’s IPA to practice.
How does one become an insolvency professional?
Graduates interested can approach any of ICSI’s centres across India. Besides getting information about the examination, they will also be provided with study material. ICSI is already preparing study material for an examination, which will launched within one month.
Eligibility for getting registered as insolvency professionals
As of now members of Institute of Chartered Accountants of India (ICAI), Institute of Cost and Work Accountants of India (ICWAI), ICSI and legal professionals with 15 years of experience in matters relating insolvency and liquidation can directly get registered IPA.
Though they can start practising immediately, they have to pass an examination to be conducted by ICSI-IPA.
The ICSI will soon open up enrollment to all graduates interested in insolvency practice. Graduates can become insolvency professionals by passing the exam.
When will the examination to get registered as insolvency professionals be held?
ICSI’s IPA has already got permission from the Union Government to conduct examination to register as insolvency professional from December 31, 2016 on wards.
While the ICSI can start conducting exams from this date onwards, the exact dates will be announced soon.
One can get information about insolvency professional examination from ICSI’s official website: www.icsi.edu.
The number of Insolvency professionals enrolled till now:
Less than 100 insolvency professionals have been enrolled till now. Enrollment of insolvency professionals has been started from December 1.
How many insolvency professionals does India need?
Though there isn’t any clear number, ICSI estimates that more than a lakh cases relating to insolvency, bankruptcy and liquidation are pending and from now only insolvency professionals can handle these cases.