IBBI Revises Bankruptcy Professionals’ Eligibility Norms

The Insolvency and Bankruptcy Board of India (IBBI) has revised the eligibility requirements of insolvency professionals hired to run companies undergoing bankruptcy proceedings, Mint reported. Insolvency professionals are required to have experience in any of the professional fields such as management, law, chartered accountancy, company secretaryship, or cost accounting. The new changes give more flexibility to professionals given that some of the professionals may have experience in more than one discipline. The new regulation also takes into account the fact that many candidates who have degrees in law may be working in the field of law but may not be practicing in a court. They are now eligible to be hired as insolvency professionals. The changes are effective from Thursday, according to the IBBI (Insolvency Professionals) (second amendment) regulations, 2021. Till now, for those in the field of management, 15 years of experience was required after securing a Bachelor’s degree in order to be eligible for an insolvency professional. The new regulation makes it 10 years in management, after receiving a Master’s degree in management or a two-year full-time post graduate diploma in management. In the absence of post-graduate qualification, 15 years of experience in management is required after a Bachelor’s degree. Read more.