These are the Frequently Asked Questions about the Limited Insolvency Exam conducted by the Insolvency and Bankruptcy Board of India (IBBI) and the Insolvency Professional Registration.
The syllabus for this exam is revised every six months, to include the latest Judicial decisions and also the recent updates in the Insolvency Laws. Refer to the IBBI website for the syllabus for the latest exam.
1. Is this examination mandated under any law and for what purpose?
Yes. This examination is mandated under the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 made under the Insolvency and Bankruptcy Code, 2016. It is one of the mandatory conditions for registration as an insolvency professional with the Insolvency and Bankruptcy Board of India (IBBI).
2. What are the eligibility criteria to sit for the examination?
There are no eligibility criteria for appearing in the examination. However, please be informed that registration as Insolvency Professional will be governed by the regulations in force at the time of consideration of application for registration as Insolvency Professional.
3. Case laws up to which date are covered in the syllabus?
Cases up to 31st December, 2017 are covered in the syllabus.
4. Which of the regulations so far issued are a part of the syllabus?
All the regulations that have been notified under the Insolvency and Bankruptcy Code, 2016 till 31st December, 2017 are covered in the syllabus.
5. How can I take the IBBI – Limited Insolvency Examination?
You need to go through three stages for taking the examination and follow instructions given on the screen at every stage:
Stage I: Please visit www.ibbi.gov.in/limited-insolvency.html or www.nism.ac.in/certification and Click on ‘Register for Exam’ button. You will be taken to “Candidate registration form”. Please provide your email address and identity details, set a password, upload your photograph, PAN Card and Aadhaar Card and then submit the form online. You will receive an activation link on your registered email id. Please click on this link to verify your email address. This is a one-time registration process and your account will be approved by NISM within 3 working days. No fee is payable for registration. Hereafter, you can access the examination system with your user id which is your email address and the password you have set at the time of registration. You can change the password whenever you like.
Stage II: You decide when you would like to take the examination. Then visit www.ibbi.gov.in/limited-insolvency.html or www.nism.ac.in/certification to enrol yourself for the examination. You need to select ‘IBBI-Limited Insolvency Examination’ (http://nism.ac.in/certification/index.php/nism-certifications/ibbi-limited- insolvencyexamination/ibbi-limited-insolvency-examination). Click on “Register and Enrol Online” link and access the system with user ID created in Stage I to choose the time and the day when you would like to take the examination and also choose the examination centre from where you would like to take the examination. After selecting time, day and centre, please pay examination fee of Rs.1500 online by using Credit Card / Debit Card / Net Banking. Thereafter, you can download your Admit Card for the examination.
Stage III: Please carry your Printout of Admit Card, original PAN Card / Aadhaar Card / Driving License / Passport and arrive 30 minutes before the scheduled time at the examination centre. Please note that without the Admit Card and the Original Photo Identity proof (mentioned above), candidate/s shall not be permitted to appear for the Examination. You will be provided on a computer screen a question paper which carries 87 questions for 100 marks. Each question has four alternate answers. You need to select the correct answer. A wrong answer attracts negative marks. Answer all the 87 questions within two hours and submit the answer paper at any time within the said two hours. If you do not submit the answer paper earlier, the paper will be auto submitted by the system on expiry of two hours. Immediately on submission of the answer paper or expiry of two hours, whichever is earlier, a temporary mark sheet would be displayed on the computer screen indicating the marks you have scored in the examination. If you score 60 marks or above, you are declared successful in the examination. In that case, you would be issued a pass certificate by the IBBI within 30 days of the examination. You would be eligible to apply for registration as an insolvency professional with the temporary mark sheet and you need not wait to get the pass certificate from the IBBI. If you do not pass the examination and wish to take the examination again, you need to repeat stage II and stage III, as many times as you wish.
6. I live in North-east where the process of Aadhaar registration has not started yet. How do I register without Aadhaar number?
Please contact NISM’s Helpline at +91-8080806476 for necessary support in this regard.
7. What is the fee payable for the examination?
You need to pay a fee of Rs.1500 (Rupees One Thousand Five Hundred only) with every enrolment. You need to pay the fee online by using Credit Card / Debit Card / Net Banking.
8. What is the structure of the question paper?
The question paper carries 74 questions of 1 mark each and 13 questions of 2 marks each. You need to answer these 87 questions in 2 hours. Each question is followed by four alternate answers. You need to select the correct answer among these. A correct answer gives you the marks assigned to the question. A wrong answer attracts a negative mark of 25% of the marks assigned to the question. You need to score 60% to pass the examination.
9. I got less than 87 questions in the examination. Kindly clarify?
As per the structure of examination there are 87 questions of which 8 questions are based on two transaction analysis cases, which appear as two cohesive groups in your exam paper. As the computer system draws these 8 questions as two sets, these appear as two questions, the testing platform displays the question count as less than 87 but when the sub-questions of the case study are taken into account, you would have received a total of 87 multiple choice questions in your examination.
10. Can I have an idea of the structure of the question paper before the examination?
A sample question paper will be available at http://ibbi.gov.in/limited-insolvencv.html soon.
11. When is the examination held?
The examination is available on all days beginning 1st January, 2018 from 9:30 AM to 5:30 PM from 100+ examination centres. To check on the availability of date and time at the examination centre of your choice, please visit https://certifications.nism.ac.in/nismaol/
12. How many times I can take the examination?
You can appear for the examination any number of times till you clear the exam. However, you have to enrol yourself afresh and pay the examination fee for each enrolment.
13. Can I get refund of the fee, if I do not take the examination?
Refund of fee is not permissible. However, you can get the examination rescheduled to a different date at least fifteen days before the scheduled examination date. Please note that only one such rescheduling is allowed.
14. How do I prepare for the examination?
The examination is based on the syllabus notified by the IBBI on its website. Please visit http://www.ibbi.gov.in/limited-insolvency.html to find out syllabus. This syllabus will hold good for examinations conducted from 1st January, 2018. You need to be thorough on every part of the syllabus. The IBBI does not provide any study material or workbook for the examination. You may use the books or other resources available on the subject
15. Can I refer books or other material during the examination?
No. It is not an open book examination.
16. When will I receive the pass certificate?
On submission of the answer paper, you would see your score on the computer screen. You would be issued a pass certificate, if you have secured 60 marks or above, by the IBBI within 30 days of the examination.
17. How long is the certificate valid?
The certificate is valid for life.
18. Can I request for re-evaluation of my answer paper?
Since the answer paper is checked by computer without any human intervention, no reevaluation is allowed. Subject to this, request/s received from a candidate for resolution of doubts about a question forming part of examination will be considered as per the following policy:
(1) Candidate’s request/s will be considered only when he/she specifically mentions a particular question or at best two questions which he/she thinks contain errors. Claim/s to recheck more than two questions shall be not permitted unless substantive material is provided by the candidate as to why he/she considers errors in such questions.
(2) No request/s to disclose/discuss question/s and/or their answers shall be entertained as disclosure of the question/s will violate the integrity of the question bank, namely, breach the confidentiality/secrecy of the question bank.
(3) Only those request/s made on-the-spot (before leaving the test centre) will be considered for verification.
(4) When a request is received from a candidate at the Test Centre, it shall be forwarded by the respective Test Administrator to NISM.
(5) Such matter will then be escalated with the question / answer to the IBBI with the details of the nature of error, the correct version of the question or contested correct answer and system recognized correct answer. IBBI, after due diligence and proper scrutiny, will arrive at a conclusion whether the claim made by a candidate in relation to a question or answer is right.
(6) Score computation, kept in abeyance as per point 4, shall be carried based on the approval as per point (5). Such score card will then be issued to the candidate by Test Administrator.
(7) The above policy and process will be subject to review from time to time and shall be binding and final in relation to any claim and/or matter when disposed off with the approval of the authority of IBBI.
19. What is my scope after clearing the Limited Insolvency Examination?
The Limited Insolvency Examination is one of the conditions of getting registered as an Insolvency Professional with IBBI. Please visit the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 at www.ibbi.gov.in.
20. What is the date for start of National Insolvency Examination?
The National Insolvency Examination has not been notified yet. Appropriate notification will be released when the examination will be launched by IBBI.
21. Who should I contact for any clarification about the examination?
You may send an e-mail at email@example.com or firstname.lastname@example.org you may call up on number +91-8080806476.
Frequently Asked Questions – Insolvency Professionals
1. Who is an insolvency professional (IP)?
As per the Insolvency and Bankruptcy Code (IBC), 2016 an insolvency professional(IP) means a person:
a. enrolled with an insolvency professional agency (IPA) as its member and,
b. registered with Insolvency and Bankruptcy Board of India (the Board) as an insolvency professional (IP).
2. What is the process to become an insolvency professional (IP)?
Following are the (mandatory) stages to be followed to become an insolvency professional (IP):
A. For Professionals (Chartered Accountant, Company Secretary, Cost Accountant or an Advocate) having 10 years of experience, or graduates having 15 years of managerial experience:
Stage 1: Pass the limited insolvency examination
Stage-2: Enrol as a professional member with an insolvency professional agency (IPA)
Stage-3: Complete a pre-registration educational course by the IPA.
Stage-4: Apply to the Board for registration as an ‘insolvency professional(IP),’within a period of 12 months of clearing the Limited Insolvency Examination.
B. The Graduate Insolvency Programme and the National Insolvency Programme will be notified by the Board in due time.
3. What is the Eligibility Criteria for becoming an insolvency professional (IP)?
An individual is eligible to become an insolvency professional(IP) provided he/she:
a. is a person resident in India,
b. is not a minor,
c. is solvent (i.e. he / she is not an undischarged insolvent or he / she has not applied
to be adjudicated as an insolvent)
d. is of sound mind,
e. has the qualification and experience as specified by the Board,
f. has not been convicted by any competent court, for an offence punishable with imprisonment for a term exceeding six months, or for an offence involving moral turpitude, and a period of five years has not elapsed from the date of expiry of the sentence.
g. is a fit and proper person.
4. Where can I get more information (viz. syllabus, frequency of examination etc) about the Limited Insolvency Examination?
The syllabus, format, qualifying marks, and the frequency of the Limited Insolvency Examination are published on the website of the Board. For more information, please visit http://www.ibbi.gov.in/limited-insolvency.html
5. I have passed the Limited Insolvency Examination. How can I enrol myself as a professional member with an insolvency professional agency?
You may approach any one of the IPAs for enrolment after clearing the Limited Insolvency Examination. At present the following agencies are registered as IPA with the Board:
a. Indian Institute of Insolvency Professionals of ICAI [IIIP-ICAI] (For more information, click on : www.iiipicai.in)
b. ICSI Institute of Insolvency Professionals [ICIS-IIP] (For more information, click on : www.icsiipa.com)
c. Insolvency Professional Agency of Institute of Cost Accountants of India [IPA-ICAI] (For more information, click on : www.ipaicmai.in)
6. Is there any standard format for an application for registration with the Board as an insolvency professional?
Yes. An application for registration with the Board must be made in Form A of Second Schedule of Insolvency and Bankruptcy Board of India (Insolvency Professionals) (Amendment) Regulations, 2018. The application has to be submitted online on the link provided on IBBI website.
7. What is the quantum of fee payable to the Board, along with the application for registration?
Application fee amounts to Rs.10,000/- (Non-refundable) plus applicable taxes. However, the fee is subject to revision from time to time.
8. What are the modes for payment of registration fee?
While filling-up the e-form for seeking registration as an Insolvency Professional, the fee is to be paid online through debit/credit card.
9. Is this a one-time fee? If No, at what intervals the renewal fee is to be paid to the Board?
Application fee is one time. However, an insolvency professional registered with the Board should, on every five years (from the year in which the certificate is granted) pay a fee of Rs.10000/- plus applicable taxes to the Board for continuation of registration by the Board.
10. Within how many days of submission of application, the Board grants registration to the applicant?
Subject to the fulfillment of terms and conditions, the Board may grant registration to the applicant within sixty days of receipt of the application. These sixty days do not include the time given by the Board for presenting additional documents, information or clarification, or appearing in person, as the case may be.
11. Whether any membership card, identity card, registration certificate etc. is issued by the Board upon registration as an insolvency professional?
An eligible applicant, upon registration would receive a certificate of registration from the Board, to carry on the activities of an insolvency professional. Physical copy of the same shall be dispatched within 21 days of grant of registration, to the address of the individual registered with the Board. However, no membership card / identity card etc. shall be issued by the Board other than the certificate of registration.
12. Are there any conditions to continue registration with the Board?
Yes, subject to other terms and conditions as applicable, an insolvency professional shall also:
a. undergo continuing professional education, as may be required by the Board,
b. pay renewal fees to the Board, every five years.
13. Can an insolvency professional undertake any other employment?
No. An insolvency professional must not engage in any employment, except when he has temporarily surrendered his certificate of membership with the insolvency professional agency (IPA) with whom he is enrolled as a professional member.
14. I wish to pursue a full-time employment and would like to surrender my certificate of registration on temporary basis. Whether the same is permitted?
Yes. You may inform the same to the Board through the insolvency professional agency wherein you are enrolled as a professional member.
15. Can I shift my professional membership from one insolvency professional agency to another insolvency professional agency?
Yes. An insolvency professional can shift professional membership from one insolvency professional agency to another, subject to prior permission of the Board, after receiving no objection from both the concerned insolvency professional agencies.
16. Is there any upper age limit for seeking registration with the Board as an insolvency professional (IP)?
No, there is no such upper age limit.
17. Can a non-individual viz. body corporate, partnership firm etc. become an insolvency professional (IP)?
No. Only individuals are eligible to become as an Insolvency professional (IP) subject to other terms and conditions, as applicable.
18. Can, an individual who is not a citizen of India, render services as an insolvency professional?
No. An individual who is not a citizen of India cannot render services as an insolvency professional unless he/she becomes a partner or director of an Insolvency Professional Entity (IPE) recognized by the Board.
19. Where can I get more information on the eligibility for becoming an insolvency professional?
Please refer to Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 available at http://ibbi.gov.in/webfront/legal_framework.php
20. Where to contact if I need some clarification regarding registration as an insolvency professional?
You may contact your IPA or mail at email@example.com
21. Can I give more than one correspondence address, one mail ID & one mobile number in the application form?
Only one correspondence address, one mail ID and one mobile number shall be furnished. All correspondence will be made to these only.