India is facing a shortage of qualified professionals to rescue financially distressed companies, prompting the Insolvency and Bankruptcy Board of India (IBBI) to take action. The board has invited top institutions to introduce postgraduate courses in insolvency resolution, aiming to bridge this gap.
Graduates from select disciplines like accounting, law, finance, and economics, armed with a two-year degree in insolvency resolution, can become certified bankruptcy resolution professionals. This new path bypasses the traditional requirement of a decade-long experience in the field.
By September 27th, institutions with robust facilities, including quality residential accommodations for at least 100 students, ample campus space for expansion, and high-quality education infrastructure, can submit their applications to offer these postgraduate programs.
Currently, only two institutions provide postgraduate insolvency programs (PGIP): the Indian Institute of Corporate Affairs and the National Law Institute University, Bhopal. There are over 4,400 registered insolvency professionals in India.
Experts believe this move will significantly increase the workforce available to handle complex debt resolution and corporate rescue tasks. IBBI has added strict conditions for selection, ensuring only the best institutions are chosen. This could lead to the approval of multiple institutions to conduct PGIP courses, resulting in a larger pool of skilled insolvency professionals.
This initiative aims to simplify and expedite insolvency proceedings in India, protect creditors, and revive struggling companies more efficiently. The Ministry of Corporate Affairs and IBBI have been working to scale up the number of bankruptcy cases resolved annually, reduce the time taken for the process, and enhance the effectiveness of debt resolution.
In the current fiscal year, a record 269 resolution plans were approved by the National Company Law Tribunal, an increase of 42% compared to the previous year. This significant improvement demonstrates the growing success in rescuing distressed companies.
IBBI emphasizes the crucial role of insolvency professionals in the resolution, liquidation, and bankruptcy processes for businesses and individuals. These professionals act as the bridge between the adjudicating authority and stakeholders, playing a vital role in the overall process.
