It is maybe once in a generation that an entirely new profession is created.
Insolvency professionals make up just such an exclusive profession. There are not enough of them in India, they are making a killing and the health of the banking and finance system is in their hands.
Given the massive shortage of IPs, the government has realised that the criteria for their selection need to be relaxed. Which is probably great news for you.
In July 2021, the Insolvency and Bankruptcy Board of India (IBBI) revised the eligibility requirements for insolvency professionals (IPs) hired to run companies undergoing bankruptcy proceedings and work out a resolution for both debtors and creditors.
What were the major changes in eligibility?
- For those qualified in law, 10 years of experience in the field of law after a Bachelor’s degree is now sufficient. If you are registered as an advocate, four years experience is enough. Earlier, 10 years of experience as an advocate was needed.
- Those with six years of experience as a CA/CS are now eligible to become an IP, provided they meet other requirements
- Management professionals with 10 years of managerial experience, and a Master’s degree or a two-year full-time PG Diploma in Management now became eligible to act as IPs. Earlier, a minimum of 15 years of experience was required after a Bachelor’s degree, which is still a valid eligibility.
In October 2022 came yet another major announcement as the IBBI amended its regulations governing insolvency professional entities (IPEs) to enable them to take on the task of administering companies undergoing a bankruptcy process.
Until then, IPEs were only allowed to assist an individual IP. Now, entities can register themselves as IPs and perform associated duties instead of simply playing a supporting role.
All of this means a hugely expanded pool from which to source insolvency professionals, and an incredible number of opportunities opening up for many more professionals.
Why such a rush to create new IPs?
The short answer is: India just does not have a sufficient number of IPs who can handle the huge caseload of companies going through insolvency and bankruptcy proceedings every year.
This need was first felt as the Indian economy teetered on the brink of collapse in 2015 thanks to massive loan defaulters. In 2016, the government passed the Insolvency and Bankruptcy Code (IBC), which creates a consolidated framework to govern insolvency and bankruptcy proceedings for companies, partnership firms, and individuals.
The IBC made provisions for the appointment of insolvency professionals to implement the code, but the number of such professionals has remained a cause for concern.
Time permitting, I will go into detail about exactly how acute the crisis is in a later email, but for now, just remember that India has way too few IPs to handle a rapidly growing backlog of insolvency cases, which means it is a great time to become an insolvency professional as demand is high and supply remains low.
Unfortunately, most eligible professionals do not even think of attempting the IBBI’s Limited Insolvency Exam, which is mandatory for anyone wishing to work as an IP.
Why is that?
- Most people do not know about the opportunity and how to benefit from it.
- Many online courses provide recorded videos, but there is no career assistance or mentorship available when you need it. You cannot interact with faculty either. The subjects can be new and difficult to grasp without assistance.
- Many have not studied for an exam in years. They are afraid to start now.
- They are unable to track progress – you need to know where you stand in comparison to yesterday, last month, last three months, otherwise it can lead to demotivation
- It is very difficult to take time out to study alongside work, after so many years
In short, as of now, owing to various valid and invalid reasons, access to the label of IP is restricted to a small and elite circle despite there being a very large market for that expertise.
The point of our bootcamp is to tell you that you can become an IP in the next six months, get amazing mandates as an IP, and in the process, build an incredible professional brand that opens doors to even bigger opportunities, such as being appointed as Independent Directors on the boards of listed companies.
How?
Insolvency professionals handle crisis situations, and are respected by and known to the banking and finance industry. It is not a long shot – to get appointed as independent director if you check certain boxes.
Most people do not know this – but you need to work on two angles to become successful as an insolvency professional.
- You need to clear the Limited Insolvency Exam held by the IBBI
- You need to build a personal brand so that you are appointed as an insolvency resolution professional, work with more high-paying clients in connection with insolvencies and financial matters, or access more high-paying career opportunities in the banking and financial sector
Want to know more about how to become an insolvency resolution professional, or at least clear the exam and benefit hugely from it?
We will discuss all of that and give you a crystal clear idea of how you can make this happen for yourself.
Get out of the mid-career trap, make your career grow in a direction that you couldn’t even have imagined!
All you need to do is join our FREE, LIVE, online bootcamp on ‘How to become an insolvency professional in India’, on May 6-7, 2023, from 3.00-6.00 pm IST both days.
Set your alarms so that you do not miss a second of the bootcamp, because no recordings will be available. You attend live, or you miss it.
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