The Insolvency and Bankruptcy Board of India was founded on October 1, 2016, in compliance with The Insolvency and Bankruptcy Code, 2016, to enhance the insolvency resolution process.
For businesses, LLPs, partnership firms, and individuals, the Insolvency and Bankruptcy Board of India is responsible for delivering an efficient and timely insolvency resolution process. In this article, we will examine the complete procedure for becoming an insolvency professional according to the guidelines established by the Insolvency and Bankruptcy Board of India.
Insolvency Resolution
Insolvency resolution is an essential component of the credit market required to keep it thriving. Thus, maximising an insolvent person’s assets’ worth, ensuring credit availability, and balancing all stakeholders’ interests are necessary for insolvency resolution. An expert appointed or recognised as an Insolvency Professional by the Insolvency and Bankruptcy Board of India oversees the whole insolvency resolution process.
Anyone who meets the eligibility criteria listed below is qualified to work as an insolvency professional.
Eligibility to Become an Insolvency Professional
Some of the fundamental requirements for becoming an insolvency professional include the ones listed below:
- Must be a major and at least 18 years old.
- The insolvency specialist should be a resident of India.
- An offence involving moral turpitude or a crime punishable by a term of imprisonment of more than six months should not have been committed by the insolvency professional, and five years must have passed since the completion of the sentence.
- Anyone who has been found guilty of a crime and given a sentence of seven years or more in jail cannot register as an insolvency professional.
- The insolvency professional must not have been an undischarged insolvent or applied to be declared bankrupt.
- The insolvency professional must be a fit and proper person as well as being of sound mind. The following factors are taken into account when determining whether a person is fit and proper:
- Reputation, character, and integrity
- No convictions and restraining orders
- Competence, economic stability, and net worth.
Experience and Qualification Required
The four courses for becoming an insolvency professional are as follows:
Passing the National Insolvency Exam
To become an insolvency professional, the qualified individual must have completed the National Insolvency Exam. The Insolvency and Bankruptcy Board of India will hold the National Insolvency Examination from time to time.
Passing Limited Insolvency Exam + Bachelors Degree + 15 Years of Experience
Additionally, anybody who meets the requirements can become an insolvency professional by passing the limited insolvency examination. And possessing a bachelor’s degree from an institution established, or recognised by law in addition to fifteen years of experience in the management field.
Professional Qualification + Passing Limited Insolvency Exam
By clearing the Limited Insolvency Exam and having ten years of experience, an eligible individual can become an insolvency professional as follows:
- A company secretary who joined the Institute of Company Secretaries of India as a member.
- A chartered accountant who joined the Institute of Chartered Accountants of India.
- An advocate registered with a bar council or a cost accountant who is a member of the Institute of Cost Accountants of India.
Registration for a Short Period
If someone qualifies and has been in business for 15 years, they can be appointed şirinevler escort as an insolvency expert for a limited period as:
- A company secretary who joined the Institute of Company Secretaries of India as a member.
- A chartered accountant who joined the Institute of Chartered Accountants of India.
- An advocate registered with a bar council or a cost accountant. Who is a member of the Institute of Cost Accountants of India.
Registration as a Licensed Insolvency Professional
For a limited period, anybody with over 15 years of experience and who is a certified Chartered Accountant, Company Secretary, Cost Accountant, or Advocate can become an insolvency professional without taking the insolvency examination. Eligible Professionals can submit an application and a Rs. 5000 non-refundable application fee to get registered.
Individuals recruited under this arrangement would be registered for a certain period. And would not be permitted to accept any assignments as insolvency professionals after their registration has expired.
Conclusion
Therefore, insolvency professionals are a lifeline for any company filing for bankruptcy. Although the professional should have superior knowledge and skill sets, hiring one with years of expertise is always a wise choice. To have a successful career as an insolvency professional, one needs to have up-to-date knowledge of the laws and regulations.
Insolvency professionals can assist individuals or entities suffering from debt concerns by offering them. Relevant legal guidance and support during these trying moments.
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