How to become an Insolvency Professional

Eligibility Criteria for Insolvency Professional

 An individual is eligible to become an Insolvency Professional provided, he/she :

•      Is an Indian resident and has attained 18 years of age (Majority).

•      Is of sound mind and a fit person.

•      Is solvent and has not been declared as an insolvent.

•      Possess the required qualification and experience as specified by the IBBI.

   •  Has not been convicted by any competent court/law, for an offence punishable with imprisonment for a term exceeding six months, or for an offence involving moral turpitude, and a period of five years has not gone from the date of expiry of the sentence.

Qualification and Experience

Below are the required qualifications and experience for an applicant to be registered as an Insolvency Professional:

•      They are either required to clear the National Insolvency Examination (or)

•    Clear the Limited Insolvency Examination in which case the applicant should have 15 years of experience in management, after receiving a Bachelor’s degree from a university established or recognised by law (or)

•      Has passed the Limited Insolvency Examination and has 10 years of experience as –

•      A chartered accountant and is a member of the Institute of Chartered Accountants of India (or)

•      A company secretary and is a member of the Institute of Company Secretaries of India (or)

•      A cost accountant and is a member of the Institute of Cost Accountants of India (or)

•      An advocate enrolled with a Bar Council

 About the Limited Insolvency Examination

•       If you wish to register as an insolvency professional under the Insolvency and Bankruptcy Code, 2016, you must pass the Limited Insolvency Examination.

•       The law at present does not provide for any specific eligibility criteria for appearing in the examination

•       A candidate needs to enrol and register at IBBI website i.e. www.ibbi.gov.in for Examination by choosing the time, the day and the Examination centre for his Examination.

•       A candidate needs to pay Examination fee of Rs.1500/- (One thousand five hundred rupees only) online on every enrolment.

•       The Examination centres are available at various locations across the country.

•       You must submit application for enrolment with the Insolvency Professional Agency within 12 months of passing the Limited Insolvency Examination.

Format of Examination w.e.f. 01-07-2019

The Examination will be conducted online (computer-based in a proctored environment) with objective multiple-choice questions.

•       A candidate will be required to answer 89 questions in two hours for a total of 100 marks.

•    The question paper carries 89 objective multiple-choice questions including 78 questions of one mark each (including one case study of 4 questions) and 11 questions of 2 marks each (including one case study of 6 questions)

•       There will be a negative marking of 25% of the marks assigned for the question.

•       Passing mark for the Examination is 60%.

•       Passing candidates will be awarded a certificate by the Board.

•       A candidate will be issued a temporary mark sheet on submission of Examination paper.

•       A candidate can appear for examination for any number of times, subject to fresh enrollment.

•       No workbook or study material will be provided.

Compiled by :

CA IP Mukesh Mittal

B.Com., FCA

Insolvency Professional

Independent Director

Certified Concurrent Auditor

9215536951, 9813340495

ca.mukeshmittal@gmail.com

https://camukeshmittal.blogspot.com

DISCLAIMER: The Author have taken utmost care while drafting the article but it may occur that certain error creeps in. This article is for academic purpose and should not be treated as a professional advice. The readers are advised to refer the Bare Acts and Rules before making any judgment.