Indian Institute of Insolvency professionals of ICAI (IIIPI) starts registrations/ publishes syllabus for Insolvency Professionals on 31 Dec. 2016; IBBI releases Sample Paper for Limited Insolvency Professional Exam
The Indian Institute of Insolvency Professionals of ICAI (IIIPI) has started the process of registration of Insolvency Professionals (including publishing of Syllabus, format and frequency of exam). Applications can be submitted by Chartered Accountants, Lawyers, Cost Accountants and Company Secretaries on or before 31 Dec. 2016 for enrollment.
IIIPI is a section 8 Company formed by the ICAI to enroll and regulate insolvency professionals as its members in accordance with the Insolvency and Bankruptcy code 2016 and read with regulations.
As per the Bankruptcy Code, 2016, the insolvency resolution processes are to be conducted by the Insolvency Professionals, who are required to be members of an Insolvency Professional Agency which in turn is to be registered with the Insolvency and Bankruptcy Board of India.
Functions of an Insolvency Professional
Where any insolvency resolution, fresh start, liquidation or bankruptcy process has been initiated, it shall be the function of an insolvency professional to take such actions as may be necessary, in the following matters, namely:—
a) a fresh start order process
b) individual insolvency resolution process
c) corporate insolvency resolution process
d) individual bankruptcy process and
e) liquidation of a corporate debtor firm
Eligibility Criteria & Fee Applicable For Chartered Accountants to become Insolvency Professional
An individual shall be eligible to be registered for a limited period (as per Regulation 9 of the said Regulations) as an insolvency professional if he has been ‘in practice’ for a minimum period of fifteen years as a chartered accountant enrolled as a member of the Institute of Chartered Accountants of India and who is not in employment.
An Insolvency Professional is required to submit an application for registration in Form A of the Second Schedule of the Insolvency Professionals Regulations to IIIPI with which he is being enrolled on or before 31st December, 2016 along with a non-refundable application fee of Seven thousand rupees. The Cheque/ DD should be in favour of “Indian Institute of Insolvency Professionals of ICAI” which should be submitted to Secretariat, 4th Floor, Administrative Block, A- 29, Sector- 62, Noida alongwith the Registration Form. Limited period registration shall be valid for a period of six months from the date of such submission.
Eligibility Criteria and Fee Applicable For Lawyers, Cost Accountants and Company Secretaries to become Insolvency Professional
An individual shall be eligible to be registered for a limited period as an insolvency professional if he has 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.
An Insolvency Professional is required to submit an application for registration in Form A of the Second Schedule of the Insolvency Professionals Regulations to IIIPI with which he is being enrolled on or before 31st December, 2016 along with a non-refundable application fee of Seven thousand rupees. The DD should be in favour of “Indian Institute of Insolvency Professionals of ICAI” which should be submitted to Secretariat, 4th Floor, Administrative Block, A- 29, Sector- 62, Noida along with the Registration Form. Limited period registration shall be valid for a period of six months from the date of such submission. After that the eligibility criteria to become an Insolvency Professional would be as per Regulation 5 of the Insolvency Professionals Regulations.
For further details on Insolvency Professionals Regulations and Registration Application Form, please refer ICAI Announcement, as under:
Syllabus of IIIPI’s Limited Insolvency Exam. on 31 Dec. 2016
The IBBI has published the syllabus, format and frequency of the “Limited Insolvency Examination” under regulation 3(3) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, to be conducted on 31 Dec. 2016 to become Insolvency Professional, as under:
I. Syllabus for Insolvency Professional Examination
|Sl. No||Coverage||Weight (%)|
|a.||The Insolvency and Bankruptcy Code, 2016 (Entire Code)||30|
|b.||Rules and Regulations under the Bankruptcy Code (All Rules and Regulations notified under the Code till 30th November, 2016)||25|
|c.||Report of the Bankruptcy Law Reforms Committee (Entire Report)||05|
|d.||(I) The Companies Act, 2013 (Chapter III Prospectus and Allotment of Securities; Chapter IV Share Capital and Debentures; Chapter V Acceptance of Deposits by Companies; Chapter VI Registration of Charges; Chapter VII Management and Administration; Chapter IX Accounts of Companies; Chapter XV Compromises, Arrangements and Amalgamations; Chapter XVII Registered Valuers; Chapter XVIII Removal of names of the companies from the register of companies; Chapter XX Winding-up of the companies; Chapter XXVII NCLT and NCLAT); (II) The Partnership Act, 1932, and (III) The Limited Liability Partnership Act, 2008 (Nature of LLP; Partners and their Relations; Limitation of Liability; Financial Disclosures)||10|
|e.||(i) The Indian Contracts Act, 1872 (Void, Voidable and Contingent Contracts; Novation, Rescission and Alteration of Contracts; Damages for breach; Indemnity, Guarantee, Surety, Bailment and Pledge; Set off); (II) Transfer of Property Act, 1882; (III) The Sale of Goods Act, 1930 (Sale, Warranties, Lien and Damages).||05|
|f.||(I) The Recovery of Debts due to Banks and Financial Institutions Act, 1993; (II) The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002; and (III) Corporate Debt Restructuring Scheme, Strategic Debt Restructuring, and Scheme for Sustainable Structuring of Stressed Assets (S4A) (of RBI)||05|
|g.||General Awareness (Constitution, Economy, Finance, Code of Conduct for Insolvency Professionals, and Rights of Workmen)||05|
|h.||Finance and Accounts (Corporate Finance, and Financial Analysis)||05|
|i.||Case Study (Cases on Corporate Insolvency Resolution, Corporate Liquidation, Fresh Start, Individual Insolvency Resolution and Individual Bankruptcy)||10|
This syllabus will be applicable for exams conducted during 31 Dec. 2016 to 30 June 2017.
II. Format of Insolvency Professional Examination
i) The examination will be conducted online (computer-based in a proctored environment); with objective multiple choice questions;
ii) The duration of the examination will be two hours;
iii) A candidate will be required to answer 90 questions in two hours for a total of 100 marks;
iv) There will be negative marking of 25% of the marks assigned for the question;
v) Passing mark for the examination is 60%;
vi) Passing candidates will be awarded a certificate by the Board;
vii) A candidate will be issued a temporary mark sheet on submission of test paper; and
viii) No workbook or study material will be provided.
III. Frequency of Insolvency Professional Examination
i) The examination will be available from 100 + locations in the country;
ii) The examination will be available from 31 Dec. 2016 between 9:30 AM and 5:30 PM;
iii) The enrollment for examination will be open from 15 Dec. 2016.
iv) A candidate needs to enroll for examination at IIIPI website. He needs to select IBBI-Limited Insolvency Examination and enroll himself for the examination by choosing the time, the day and the examination centre for his examination;
v) A candidate needs to provide PAN and Aadhaar to enroll for the examination; and
vi) A candidate needs to pay examination fee of Rs.1000 (Rupees one thousand only) online on every enrollment.
Limited Insolvency Exam Sample Paper (Model Test Paper by IBBI)
Download Limited Insolvency Examination Sample Paper prepared by IBBI for reference of the candidates appearing for Insolvency Professional Exam.