How to become Insolvency Professional for Chartered Accountants

1. No individual shall be eligible to be registered as an insolvency professional if he:-

• (a) is a minor;
• (b) is not a person resident in India;
• (c) does not have the qualification and experience specified in Regulation 5 or Regulation 9, as the case may be;
• (d) has 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.

Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be registered;

• (e) he is an undischarged insolvent, or has applied to be adjudicated as an insolvent;
• (f)  he has been declared to be of unsound mind; or
• (g) he is not a fit and proper person.

Explanation: For determining whether an individual is fit and proper under these Regulations, IBBI may take account of any consideration as it deems fit, including but not limited to the following criteria-

(i) integrity, reputation and character,

(ii) absence of convictions and restraint orders, and

(iii) competence, including financial solvency and net worth.

1. Clause 9 of the Bye Laws of IIIPI states that no individual shall be enrolled as a professional member with IIIPI if he is not eligible to be registered as an Insolvency Professional with the Board.

Indian Institute of Insolvency Professionals of ICAI (IIIPI) has been awarded with the registration certificate as the First Insolvency Professional Agency of India.

A Chartered Accountant who is a member of  Institute and has ten years of experience is qualified to register as an Insolvency Professional. [Regulation 5(c)(iv) of the IBBI (Insolvency Professionals) Regulations,2016].

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Followings steps are required to become an Insolvency Professional:

Step 1 : Pass the Limited Insolvency Examination conducted by IBBI.

Step 2 : He is required to apply for enrolment as a professional member with an Insolvency Professional Agency (IPA) within twelve months from the date of his passing the Limited Insolvency Examination [Regulation 5(a) of the IBBI (Insolvency Professionals) Regulations, 2016].

Step 3 : After his enrolment as professional member, he is required to complete the mandatory 50 hours Pre-Registration Educational Course from an IPA. [Regulation 5(b) of the IBBI (Insolvency Professionals) Regulations, 2016].

Step 4 : Register with IBBI as an Insolvency Professional.

Eligible members of ICAI can enroll with IIIPI (as mentioned in Step 3 above) through following link:

Apply for enrolment

For registration for Limited Insolvency Examination (as mentioned in Step 1), click on the following link:

https://ibbiliexam.onlineregistrationform.org/IBBI/

Official Website of IIIPI:

https://www.iiipicai.in/

Procedure for appearing in Limited Insolvency Examination 

If you wish to apply for this Examination, please satisfy yourself that you are eligible for the same. Thereafter, you need to go through the following three stages :

Stage I: Registration with the system

1. 1. Please visit Pre-Registration
2. 2. Click on ‘Register and Enroll Online’ button.
3. 3. You will be taken to ‘Candidate registration form’. You will be taken to the NSEIT’s candidate registration portal. Please provide required information.
4. 4. You will receive an activation link on your registered e-mail address. Please click on this link to verify your e-mail address. No fee is payable for registration.
5. You will be provided with log-in credentials i.e., user ID and password and use the same for all purposes.

Stage II: Enrolment and slot selection

1. To enroll visit  Pre-Registration
2. The candidates can check the slot availability in the “Center Details” tab. 
3. After logging in, a “Book Seat” tab will automatically be activated
4. Once you have selected the seat, click on the “Payment” link, and proceed with the online payment. of applicable Examination fee to complete the enrolment. 
5. Examination Fees : Rs.5900 (Inclusive of GST).

For more details click on following link:

https://ibbi.gov.in/uploads/exams/LIE%20FAQs%2001032022.pdf

Syllabus of Limited Insolvency Examination: 

Major heads of syllabus are enlisted here :

1. 1. The Insolvency and Bankruptcy Code, 2016 (Code) 
2. 2. All Rules, Regulations and Circulars notified under the Code
3. 3. Business Laws
4. 4. General Laws
5. 5. Finance and Accounts (Corporate Finance; Financial Analysis; Liquidity Management; Tax Planning and GST)
6. 6. General Awareness
7. 7. Case Laws- Important decisions of Supreme Court and High Courts, Decisions of NCLAT and NCLT relating to Corporate Insolvency Resolution, Corporate Liquidation, Voluntary Liquidation and Fast Track Resolution Process. There will be five questions carrying one mark each.
8. 8. Case Studies

Examination Details:

1. The examination is conducted online (computer-based in a proctored environment) with objective multiple-choice questions.
2.  Duration of Exam : 2 Hours
3.  Negative Marking : 25% of the marks assigned for the question.
4. A candidate needs to secure 60% of marks for passing.

For more Syllabus ,Weightage chapter-wise and Exam related details click on the following link:

https://ibbi.gov.in/en/examination/syllabus6

Pre-registration educational course under regulation 5(b) of the IBBI (Insolvency Professionals) Regulations, 2016

In terms of the IBBI (Insolvency Professionals) Regulations, 2016, an individual is eligible for registration as an insolvency professional if he has completed a 50 hours pre-registration educational course from an insolvency professional agency (IPA)

 For members of ICAI to register for this course click on the following link:

PREC