IBS Consultants Corporate Legal: Broad Guidelines for CA, CS & Lawyers to register themselves as Insolvency Professionals in the new Insolvency & Bankruptcy 2016
The Insolvency and Bankruptcy code 2016 provides new opportunities for professionals like CA, CS and Lawyers to participate in the institutional framework as “Insolvency Professionals”. They will play a key role in the working of the bankruptcy process.
There are regulations that govern their eligibility and appointment as Insolvency Professionals. These are contained in Regulations 4, 5, 6 & 9 in Chapter III of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016
Insolvency Professionals need to pass exams for permanently registering as Insolvency professionals with the Board. There are guidelines for registration for a limited period as well.
We will take a look at the important points that a professional need to note for registering as Insolvency professional.
Qualification & Experience Required
Chartered Accountants, Company Secretaries, Cost Accountants and Advocates need to have a minimum of 10 years of experience and should have passed the Limited Insolvency Exams. Primarily, they need to be enrolled as members of their respective Institutes. Advocates will have to be enrolled with a Bar council.
The regulations also permits 15 years of management experience after bachelor’s degree, to appear for limited insolvency examination and register as Insolvency professionals after passing the examination.
Applying for the certificate of Registration
The professional enrolled with the Insolvency Professional Agency will have to make an application to the Board in Form A of the Second Schedule to these Regulations, along with a non-refundable application fee of Rs.10000- to the Board.
The Board will acknowledge the application and make ask for any additional documents, information or explanation or may require the applicant to appear in person for the Board for any clarification as may be required for processing the application.
Registration for Limited Period for Chartered Accountants, Company Secretaries, Cost Accountants and Lawyers
Regulation 9 provides for registration for limited period that can be availed by the above professionals. In order to be eligible, the professional should have been ‘in practice’ for fifteen years as a cost accountant, company secretary or a lawyer enrolled as a member of their respective institutes/ Bar Council. They could then enroll themselves as “Insolvency Professionals” for limited period of six month. This registration window was opened till December 31, 2016.
Certificate of Registration
Subject to the fulfillment of required conditions, the certificate of registration is granted to an Insolvency professional in Form B of Second Schedule of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016
Insolvency and Bankruptcy Board of India has started conducting exams for people willing to register themselves as insolvency professionals. The professionals on the panel can be engaged by both creditors and debtors.