Comments
The rise in instances of companies undergoing restructuring and resolution under the Insolvency and Bankruptcy Code seems to be driving the demand for insolvency professionals (IPs), who constitute one of the four key pillars of the insolvency regime.
The rise in awareness is driving the need for specialised programmes for training professionals such as Chartered Accountants, Cost Accountants, Company Secretaries, advocates, or those with a post-graduate degree in major subjects such as economics, finance, commerce and management in the field of insolvency resolution.
The Indian Institute of Corporate Affairs, through its Centre for Insolvency and Bankruptcy, has come up with a two-year Graduate Insolvency Programme (GIP) for training professionals. The certificate programme is approved by the Insolvency and Bankruptcy Board of India (IBBI).
According to MS Sahoo, Chairperson, IBBI, the programme is aimed at tapping the potential of young aspirants, who have the “dynamism and ability” to excel in the field of insolvency resolution.
“A student who completes the GIP will be eligible for registration as an insolvency professional without having to wait to acquire the minimum 10-year experience as required by the code at present,” Sahoo told BusinessLine . The programme, which is to be rolled out from July 2019, is tailored to align with the requirements of the industry. GIP’s advisory board will consist of practitioners, regulators, judiciary, and other eminent personalities who will oversee the development of curriculum.
At present, there is no shortage of IPs in the country. The purpose behind rolling out such a course is to create an opportunity for aspiring individuals, said Sahoo.
There are close to 2,500 insolvency professionals at present.
“The programme is not to address the shortage issue, as there is no shortage at present. It is only to offer a different competing route to become an IP,” he pointed out.
More institutes to join fray
While only IICA offers the GIP course at present, more institutes are soon likely to join the fray. IBBI is open to consider request from other institutes for rolling out such courses.
“We had invited for some expression of interest; as and when it comes, it will be processed. The IICA programme will commence in July 2019, and in the next one year we will learn how and where to improve,” said Sahoo.
The IICA programme would serve as a prototype, and based on this more institutes might roll out such courses, he added.
Consultant jobs
According to Mamta Binani, a resolution professional and former president of ICSI, professionals undergoing the two-year programme get to work not only as an IP but can also serve as a consultant to corporates or big firms that are undergoing restructuring.
“The programme should not be looked at only through the prism of IBC because it is not just restricted to that. The IPs can play a role in holistic development and restructuring of corporates,” she said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.