IBBI Guidelines for Insolvency Professional Education
Table of Contents
The Insolvency and Bankruptcy Board of India (IBBI) in regulates insolvency professionals (IPs) by overseeing their registration, settling eligibility standards, enforcing ethical and professional conduct, and monitoring their performance to ensure compliance with the Insolvency and Bankruptcy Code, 2016 (IBC). Structured education and training are crucial for bullying competent IPs, as they ensure professionals possess the necessary skills to manage complex insolvency and liquidation processes effectively. The IBBI lays down the framework for IP education through mandatory continuing professional education (CPE), requiring IPs to complete 30 credit hours annually, with a phased increase in in-person learning requirements from 40% in 2026 to 60% by 2028. These Guidelines for Insolvency Professional, issued under section 196(1)(aa) of the IBC, are designed to maintain a high standard of professional competence and accountability.
Who are Insolvency Professionals?
Section 3 (19) of the IBC, an “insolvency professional” means a person enrolled under section 206 with an insolvency professional agency as its member and registered with the IBBI as an insolvency professional under section 207. They are central to the corporate insolvency resolution professional (CIRP), where they act as the interim resolution professional (IRP) or resolution professional (RP), managing the corporate debtor’s affairs as a going concern, protecting its assets, verifying claims, forming the Committee of Creditors (CoC), and facilitating the development of a resolution plan. In liquidation and individual insolvency processes, IPs serve as liquidators or authorized representatives, responsible for realising assets, settling claims, and ensuring compliance with the IBC and its related rules or regulations. Thus, their effectiveness is paramount, making continuous education and skills development critical to maintain expertise in complex financial, legal, and operational matters, ensuring the integrity and efficiency of the entire insolvency framework.
IBBI’s Framework for Insolvency Professional Education
Regulation 5 of the IBBI (Insolvency Professionals) Regulations, 2016 (“IP Regulations”) lists the professional and educational requirements of IPs:
Eligibility Requirements
- ten years in the field of law, after receiving a Bachelor’s degree in law
- ten years in management, after receiving a Master’s degree in Management or two-year full time Post Graduate Diploma in Management; or
- fifteen years in management, after receiving a Bachelor’s degree, from a university established or recognised by law or an Institute approved by All India Council of Technical Education; or
- ten years’ of experience as
(a) chartered accountant registered as a member of the Institute of Chartered Accountants of India,
(b) company secretary registered as a member of the Institute of Company Secretaries of India,
(c) cost accountant registered as a member of the Institute of Cost Accountants of India,
(d) advocate enrolled with the Bar Council.
Pre-Registration Educational Courses
- Completion of a pre-registration educational course within twelve months from the date of payment of non-refundable application fee, as may be required by the IBBI, from an insolvency professional agency after his enrolment as a professional member;
- These courses must focus on IBC, Companies Act, Contract Law, and allied legislations.
Examination for Insolvency Professionals
The Limited Insolvency Examination (LIE) is a mandatory examination for registration as an IP under the IP Regulations, which is conducted by the IBBI with the National Institute of Securities Markets (NISM). It assesses a candidate’s knowledge of insolvency laws, practical application of their theoretical knowledge, and interpretation of case laws. The subjects covered in LIE are divided into eight main topics with varying weightage, namely, the IBC, all rules, regulations and circulars notified under the IBC, Business laws (Companies Act, 2013, the Partnership Act, etc.), General laws (Negotiable Instruments Act, the Transfer of Property Act, etc.), Finance and Accounts, General awareness, including the Constitution of India, case laws, focusing on importance decisions from the Supreme Court, the High Court, the National Company Law Appellate Tribunal (NCLAT), and the National Company Law Tribunal (NCLT) related to insolvency, and cases studies, which constitute the largest portion of the exam (70 marks).
The passing criteria require a candidate to achieve a score of 60% or higher, with negative marking of 25% of the marks allotted to a question applied for incorrect answers. Candidates can appear for the examination any number of times until they pass, but they must re-enrol and pay the examination fee for each attempt.
Read more : What is Form G in IBC – Invitation for Expression of Interest
Continuing Professional Education (CPE)
IPs must complete a minimum of 30 credit hours of CPE annually to maintain their registration, except in the year of registration. These CPE hours can be earned through various activities, including, seminars, workshops, online modules, and publishing articles or books. The IBBI is responsible for settling the Guidelines for Insolvency Professional and approving the entities that can conduct CPE programs, while IPAs monitor compliance and maintain records of IPs CPE activities.
Course Curriculum & Learning Areas
Along with subjects in the LIE syllabus and topics that have practical use in an IPs profession, CPE mainly covers:
- Insolvency and Bankruptcy Code
- Corporate law, securities law, and contract law.
- Financial management, forensic audit, valuation.
- Ethics and code of conduct for IPs.
IBBI’s Emphasis on Professional Ethics & Skills
- The IBBI emphasized professional ethics and skills through its regulations, mandating IPs to adhere to a strict Code of Conduct outlined in the First Schedule of the IP Regulations.
- The IBC requires IPs to uphold integrity, objectivity, independence, and impartiality in all professional dealings, ensuring decisions are free from bias, conflicts of interest, or undue influence.
- Transparency is critical, as IPs must disclose conflicts of interest, maintain accurate records, and ensure clear communication with all stakeholders to foster trust and accountability.
- Practical skill development is achieved through interactive workshops and case standees to empower IPs to make independent ethical judgements and apply principles in real-world scenarios.
Global Alignment in Insolvency Professional Education
The IBBI’s Guidelines for Insolvency Professional for cross-border insolvency are designed to align with international best practices by drawing inspiration from UNCITRAL Model Law on Cross-Border Insolvency, a framework widely adopted by major economies like the United States and the United Kingdom. The Guidelines for Insolvency Professional incorporate principles like the World Bank’s recommendation on effective insolvency regimes, emphasizing recognition of foreign proceedings, cooperation between courts, and equitable treatment of creditors. It also reflects the collaborative approach championed by INSOL International, focusing on coordination between IPs and courts across jurisdictions. To bridge skill gaps in handling complex corporate cases, the guidelines aim to enhance the capacity of IPs through structured procedural and international cooperation mechanisms.
Challenges & Future Roadmap
- There is a necessity for specialized modules, such as artificial intelligence (AI) in insolvency, improvement in cross-border insolvency, and forensic accounting.
- The IBBI needs to expand digital and hybrid learning opportunities.
- The IBBI can strengthen its collaboration with law schools and global institutions.
Conclusion
The IBBI’s guidelines ensure a robust and evolving educational ecosystem for IPs. These Guidelines for Insolvency Professional, updated in 2025, also introduce new credit-earning avenues like publishing articles, passing professional exams, and include a new CPE area on “Prevention of Money Laundering Act and fraud detection”. Continuous education builds a stronger, more transparent, and efficient insolvency framework in India by ensuring professionals stay updated with evolving market realities, legal standards, and best practices.
FAQs
Q1. What are the eligibility criteria to become an insolvency professional?
The eligibility criteria to become an IP is given under Regulation 5 of the IP Regulations, which is:
- ten years in the field of law, after receiving a Bachelor’s degree in law
- ten years in management, after receiving a Master’s degree in Management or two-year full time Post Graduate Diploma in Management; or
- fifteen years in management, after receiving a Bachelor’s degree, from a university established or recognised by law or an Institute approved by All India Council of Technical Education; or
- ten years’ of experience as
(a) chartered accountant registered as a member of the Institute of Chartered Accountants of India,
(b) company secretary registered as a member of the Institute of Company Secretaries of India,
(c) cost accountant registered as a member of the Institute of Cost Accountants of India,
(d) advocate enrolled with the Bar Council.
Q2. What is the Limited Insolvency Examination?
The LIE is a standardized, computer-based proctored test conducted by the IBBI to assess candidates’ knowledge of the IBC, related laws, financial principles, and practical case studies, which is a mandatory step for individuals aspiring to register as IPs.
Q3. Are insolvency professionals required to pursue continuous education?
Yes, IPs are required to pursue CPE, mandated by the IBBI, which requires a minimum of 30 credit hours annually to maintain registration.
Q4. Which institutions conduct insolvency professional courses under IBBI guidelines?
Institutions conducts IP courses under IBBI guidelines in include the Indian Institute of Corporate Affairs (IICA), which offers the Post Graduate Insolvency Programme, and various IPAs that conduct the mandatory Pre-Registaration Education Course (PREC) and Continuing Professional Education (CPE) programmes.
Q5. How do IBBI’s education guidelines benefit aspiring professionals?
IBBI’s education Guidelines for Insolvency Professional benefit aspiring professionals by mandating annual CPE with a structured credit system and a phased increase in in-person learning requirements, ensuring they maintain up-to-date knowledge and skills for effective practice.
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