Govt to Launch Aca­demic Course on In­sol­vency

Aims to cre­ate a pool of 45 bank­ruptcy pro­fes­sion­als an­nu­ally to deal with bad loan is­sue

The Economic Times - - Finance & Commodities - [email protected] times­

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.