Insolvency Proceeding: A Burden for Some, An Opportunity for Others
Many ordinary grads, with experience in fin domain, required to assist insolvency pros
Mumbai: India’s .₹ 7 lakh-crore debt recovery isn’t an exclusive opportunity for IIT-IIM alumni or top CAs to burnish their CVs: Thousands of ordinary graduates, with experience in the financial domain, may be part of the unprecedented exercise that requires a huge number of support staff to assist the decisionmakers.
The government is planning to design a certified training programme for such people. In association with the Insolvency and Bankruptcy Board of India, professional institutes, and top accountants and company secretaries, the government expects to kick-start the process, for which course modules may soon be de-
signed. “The Code empowers them (insolvency professionals) in several ways to discharge their responsibilities effectively,” said MS Sahoo, chairperson at the Insolvency and Bankruptcy Board of India (IBBI).
“It would help them further if they can have access to a pool of skilled personnel to assist them in their work.” Chartered and cost accountants, company secretaries and lawyers with 10 years of experience are eligible to appear for IBBI exams to qualify as insolvency professionals (IPs). Graduates, too, can take the same examination, but with at least 15 years’ experience. “Even with 15 years of experience, graduates would not be on a par with other qualified professionals such as the CAs, CWAs or the CS,” said ICAI former president Manas Kumar Thakur, whose term ended last week. “They need grooming and training to become familiar with the terms and provisions of the industry…Certified training programmes, if implemented in right earnest, will create thousands of jobs opportunities.”
For now, the category of top professionals looks to be in high de- mand as graduates are not considered capable enough of running companies on a day-to-day basis. IBBI is already running short orientation/training programmes for the existing pool of IPs. An IP is supposed to run the day-to-day business of a defaulting company for up to 270 days once the borrower is admitted for insolvency proceedings.
“Para insolvency support services should be developed to aid the whole gamut of activities now,” said Mamta Binani, a resolution professional and past president of the Institute of Company Secretaries of India. “Such a move will help address the day-today tight-rope work required in the insolvency practice. With stipulated experience, such graduates should be future-ready to act as a support system for seasoned insolvency professionals.”
There are around about 600-700 qualified insolvency professionals in the country, according to Binani. Each needs a team of 10-15 people on an average. The team is essential for any IP as it includes industry experts, lawyers and other professionals.