In the next few weeks, the government is set to launch a 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 Indian Institute of Management or Indian Institute of Technology.
The 27-month programme is expected to set global benchmark for insolvency professionals, as India seeks to extricate about Rs 10 lakh crore in soured loans.
By February first week, the Insolvency and Bankruptcy Board of India would launch it as preparations are at an advanced stage, a senior executive with the direct 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, finance, 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, who did not wish to be named.
The delivery of the course will be outsourced to an eligible institution for which the insolvency regulator has already sought expression of interest (EoI).
“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.
“Pass-out professionals will be much more equipped to deal with tough bankruptcy cases, which in turn, may check lingering of cases beyond the stipulated time,” he said.
After obtaining the degree, students can either choose to be insolvency professionals, who run day to day business of a company undergoing insolvency proceedings within a stipulated period, or advise other stakeholders.
The course module will have about three to five segments including on-campus class room training besides domestic and foreign internships.
The course fee may be in the range of Rs 7-10 lakh annually, though it is yet to be finalised.
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.
Insolvency professionals, barring a small group of seasoned people, are often blamed for their inefficiencies to deal with the intricacies of cases involving thousands of crores.
Source: Economic Times, January 17,2019