Govt to Launch Academic Course on Insolvency
Aims to create a pool of 45 bankruptcy professionals annually to deal with bad loan issue
Mumbai: In the next few weeks, the government is set to launch the Graduate Insolvency Programme, a bespoke academic course, the first of its kind in the world, to create a pool of 45 bankruptcy professionals annually.
The course will be similar to those graduating with top honours at the IIMs or IITs. The 27month programme is expected to set a global benchmark for insolvency professionals, as India seeks to extricate about .₹ 10 lakh crore in soured loans.
By February first week, the Insolvency and Bankruptcy Board of India will launch it as preparations are at an advanced stage, a senior executive with the knowledge of the matter told ET. A six-member working group has finalised the
broad contours of the course like date of first admission, course fees, study modules and so on.
“IBBI has conceptualised the Graduate Insolvency Programme, one of its kind in the world, to groom world-class insolvency professionals and intends to launch it from the coming academic year,” said IBBI chairperson MS Sahoo. Indians who are chartered accountants, cost accountants, company secretaries, law graduates, post graduates in economics, fi-
accountants accountants secretaries graduates in economics, finance and commerce
nance, management, commerce with a minimum percentage of marks can sit for the elimination exam to qualify for the course. Five seats would be reserved for foreign nationals.
“The elimination exam will be the like of Common Admission Test (CAT) as competition will be tough,” said the source. The delivery of the course will be outsourced to an eligible institution for which the insolvency regulator has sought expression of interest.
“This is for the first time that India would be able to export talent in a niche area once the government launches the Graduate Insolvency Programme,” said Sumant Batra, managing partner of Kesar Dass B & Associates, a Delhi-based firm that is a member of the working group. After obtaining the degree, students can either choose to be insolvency professionals, or advise other stakeholders.
The course fee may be .₹ 7-10 lakh annually, though it is yet to be finalised. The course module will have about three to five segments, including on-campus classroom training besides domestic and foreign internships.
The Insolvency and Bankruptcy Code is still evolving after two years since incorporation. Some cases are going well beyond the maximum stipulated period of 270 days.