Insolvency Professional - Career Opportunities for retired Bankers.

Insolvency Professional - Career Opportunities for retired Bankers. 

With the implementation of “ Insolvency and Bankruptcy Code - 2016 “ a new field of career opportunities are now available for the retired bankers. 

As per the code the professionals involved in the insolvency resolution process are to be compulsorily registered with “The Insolvency and Bankruptcy Board of India (IBBI) established on 1st October’ 2016.

It has been observed that in a insolvency resolution process , on an average 5 to 10  insolvency professionals are involved or engaged .Besides Resolution Professional appointed by Adjudicating Officer (NCLT) / CoC (Committee of Creditors), banks & other financial institutions are preferring “ Insolvency Professional “ as their representative in the CoC .

As per the code & regulation therein framed under the code , following are the some of basic  eligibility criteria  for becoming insolvency professional.

- The Insolvency Professional must be a major, over the years of 18.

- The Insolvency Professional must not have been convicted by any competent court 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 elapsed from the date of expiry of the sentence.

- Any person who has been convicted of any offence and sentenced to imprisonment for a period of seven years or more , is not eligible to be registered as an Insolvency Professional. 

- The Insolvency Professional must not have been an undischarged insolvent, or has applied to be adjudicated as an insolvent.

- The Insolvency Professional must be of sound mind and a fit and proper person. To judge if a person is fit and proper, the following criteria's are considered.

   i)   Integrity, reputation and character.

   ii)  Abṣence of convictions and restraint orders.

   iii) Competence, including financial solvency and net worth. 

Qualification and Experience Required for becoming an Insolvency Professional

The following four routes are prescribed in “The Code”

1. Passing the National Insolvency Examination. To become an Insolvency Professional , the eligible person must have passed the National Insolvency Examination. The National Insolvency Examination will be held from time to time by the Insolvency and Bankruptcy Board of India (IBBI).

 Note -   IBBI has not yet prescribed the modalities of the conduct of National  Insolvency Examination

2. Passing the Limited Insolvency Examination + Bachelor's Degree + 15 Years Experience  Also, any person who is eligible can become an Insolvency Professional by passing the Limited Insolvency Examination, if he/she has fifteen years of experience in management and a bachelor's degree  from a university established or recognized by law.

3. Passing the Limited Insolvency Examination + Professional Qualification. A eligible person can become an Insolvency Professional by passing  the Limited Insolvency Examination having 10 years as: 

i)  A Chartered Accountant . enrolled as a member of the Institute of Chartered Accountants of India

ii)  A Company Secretary,  enrolled as a member of the Institute of Company  Secretaries of India.

iii) A Cost Accountant . enrolled as a member of the Institute of Cost Accountants of  India. Or

iv) An advocate enrolled with a Bar Council.

4.   Registration for a Limited Period  For a limited period, a eligible person can be  appointed as an insolvency professional if he/she has been in practice for 15 years as:

i)  A Chartered Accountant . enrolled as a member of the Institute of Chartered Accountants of India

ii)  A Company Secretary,  enrolled as a member of the Institute of Company Secretaries of India.

iii) A Cost Accountant . enrolled as a member of the Institute of Cost Accountants of India. Or

iv) An advocate enrolled with a Bar Council.

Note - Registration under this criteria was  for six months and was open upto 31st Dec. 2016.

Need and availability of Insolvency Professional can judged from the following figures.      ( AS on 31st March’ 2019)

No. of Corporates undergoing resolution                 1143
No. of Corporates undergoing Liquidation  362
No. of Corporates undergoing V. Liquidation  286

No. of Registered Insolvency Professionals            2456 

      

For detailed information one can visit the site of  The Insolvency and Bankruptcy Board of India (IBBI) at...  http://www.ibbi.gov.in