Image result for भारतीय दिवाला और शोधन अक्षमता बोर्ड Insolvency and Bankruptcy Board of IndiaLaw – Regulations 4, 5 & 9 in Chapter III of Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016.

Regulation 4 

No individual shall be eligible to be registered as an insolvency professional if he –

(a) is a minor.

(b) is not a person resident in India.

(c) does not have the qualification and experience specified in Regulation 5 or Regulation 9, as the case may be.

(d) has 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.

Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be registered.

(e) he is an undischarged insolvent, or has applied to be adjudicated as an insolvent.

(f) he has been declared to be of unsound mind.

(g) he is not a fit and proper person.

Explanation: For determining whether an individual is fit and proper under these Regulations, the Board may take account of any consideration as it deems fit, including but not limited to the following criteria-

  (i) integrity, reputation and character.

  (ii) absence of convictions and restraint orders.

  (iii) competence, including financial solvency and networth.

Regulation 5 – Qualifications and Experience

Subject to the other provisions of these Regulations, an individual shall be eligible for registration, if he –

(a) has passed the National Insolvency Examination.

(b) has passed the Limited Insolvency Examination, and has fifteen years of experience in management, after he received a Bachelor’s degree from a university established or recognized by law.

(c) has passed the Limited Insolvency Examination and has ten years of experience as –

(i) a chartered accountant enrolled as a member of the Institute of Chartered Accountants of India.

(ii) a company secretary enrolled as a member of the Institute of Company Secretaries of India.

(iii) a cost accountant enrolled as a member of the Institute of Cost Accountants of India, or

(iv) an advocate enrolled with a Bar Council.

Regulation 9 – Registration for a limited period

(1) Notwithstanding any of the provisions of Regulation 5, an individual shall be eligible to be registered for a limited period as an insolvency professional if he –

(a) has been ‘in practice’ for fifteen years as –

(i) a chartered accountant enrolled as a member of the Institute of Chartered Accountants of India.

(ii) a company secretary enrolled as a member of the Institute of Company Secretaries of India.

(iii) a cost accountant enrolled as a member of the Institute of Cost Accountants of India, or

(iv) an advocate enrolled with a Bar Council and

b. submits an application for registration in Form A of the Second Schedule to these Regulations to the insolvency professional agency with which he is enrolled on or before 31st December, 2016 along with a non-refundable application fee of five thousand rupees which shall be collected by such insolvency professional agency on behalf of the Board.

(2) The insolvency professional agency shall submit to the Board the fee collected and the details of the applications received under sub-regulation (1)(b).

(3) An individual referred to sub-regulation (1) shall be registered for a limited period upon submission of the details and fee to the Board under sub-regulation (2), which shall be valid for a period of six months from the date of such submission.

(4) An insolvency professional registered under sub-regulation (3) shall not undertake any assignment as an insolvency professional after the expiry of his registration.

Provided that he may complete the pending assignments undertaken before the expiry of his registration and his registration shall be deemed to be valid for this limited purpose.