2018/V:2

Frequently Asked Question

(Source: IBBI/Syllabus for Limited Insolvency Examination: W.E.F. 1st January

2018/Insolvency and Bankruptcy Code, 2016 and Regulations made thereunder)

Eligibility to register as an Insolvency Professional

Ques. 1 What are the eligibility criteria for registration as Insolvency Professional (IP)?

The eligibility criteria for registration as Insolvency Professional are as follows:

I. Chartered Accountant, Company Secretary, Cost Accountant and Advocate who has
passed the Limited Insolvency Examination and has ten years of experience and
enrolled as a member of respective Institute/Bar Council [Regulation 5(c) of the
Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016
(IP Regulations)]
II. A Graduate who 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 [Regulation 5(b) of the IP Regulations]
III. Any other individual on passing the National Insolvency Examination [Regulation 5(a)
of the IP Regulations]. The Insolvency & Bankruptcy Board of India (IBBI) is yet to
notify the syllabus for National Insolvency Examination (as distinct from Limited
Insolvency Examination, for which the syllabus is available on the IIIPI website
http://iiipicai.in/limited-insolvency-examination-second-edition).

Ques. 2 I am a member of ICAI with 10 years of experience. Currently I am in employment.

Whether I am eligible to register as an Insolvency Professional?

You are eligible to register as an Insolvency Professional. However you have to fulfil the
following conditions:

i. You have to pass the Limited Insolvency Examination conducted by Insolvency &
Bankruptcy Board of India (IBBI).
ii. Before filing the application Form A you have to resign from your present
employment. As per Clause 23 of the Code of Conduct, an Insolvency Professional
should not engage in any employment. Accordingly, a person cannot be registered as
an Insolvency Professional if he is simultaneously under employment contract.

Ques. 3 I am a FCA with 10 + years of post-qualification experience (practice +

employment). Whether I am eligible to register as an Insolvency Professional?

You are eligible to register as an Insolvency Professional. However you have to pass the
Limited Insolvency Examination conducted by Insolvency & Bankruptcy Board of India (IBBI)
before applying for registration, provided you are no longer in employment.

Ques. 4 I am a Chartered Accountant and hold a COP and also a partner with a CA firm.
Whether I can register as an Insolvency Professional with IIIPI? Whether I can continue to
hold my COP under ICAI and practice as a Chartered Accountant even after registering as
an Insolvency Professional?
You can register as an Insolvency Professional. However you have to pass the Limited
Insolvency Examination conducted by Insolvency & Bankruptcy Board of India (IBBI). Yes,
you can continue to hold your CoP under ICAI and practice as a Chartered Accountant.

Limited Insolvency Examination

Ques. 5 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).

Ques. 6 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.

Ques. 7 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.

Ques. 8 How can I take the IBBI - Limited Insolvency Examination?

The Insolvency and Bankruptcy Board of India (IBBI) has notified the syllabus, format and
frequency of the “Limited Insolvency Examination” under Regulation 3(3) of the Insolvency
and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 applicable w.e.f.
1st January, 2018. One has to go through three stages for taking the examination:

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 enroll yourself
for the examination. You need to select ‘IBBI-Limited Insolvency Examination’
(http://nism.ac.in/certification/index.php/nism-certifications/ibbi-limited-insolvency-
examination/ibbi-limited-insolvency-examination). Click on “Register and Enroll 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 center. 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.

Ques. 9 What is the format of Limited Insolvency Examination?

The format of examination is as under:

a) The examination will be conducted online (computer-based in a proctored
environment) with objective multiple choice questions.
b) The duration of the examination will be two hours.
c) A candidate will be required to answer 87 questions in two hours for a total of 100
marks.
d) There will be negative marking of 25% of the marks assigned for the question.
e) Passing mark for the examination is 60%.
f) Passing candidates will be awarded a certificate by the Board.
g) A candidate will be issued a temporary mark sheet on submission of examination
paper.
h) No workbook or study material will be provided.

Ques. 10 What is the frequency of Examination?

The frequency of Examination is as under:

a) The examination centers will be available from 100 + locations in the country.
b) The examination will be available from 1st January, 2018.
c) A candidate needs to enroll for examination at www.nism.ac.in. He needs to select
IBBI-Limited Insolvency Examination and enroll himself for the examination by
choosing the time, the day and the examination centre for his examination.
d) A candidate needs to provide PAN and Aadhaar to enroll for the examination.
e) A candidate needs to pay examination fee of Rs.1500 (Fifteen hundred rupees only)
online on every enrollment.
f) If you do not pass the examination and wish to take the examination again, you may
enroll yourself afresh as many times as you wish.

Ques. 11 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.

Ques. 12 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.

Ques. 13 How I can enroll for the Limited Insolvency Examination?

To register for the examination please visit:

https://certifications.nism.ac.in/nismaol/Candidate/UserRegistration.aspx

Ques. 14 What is the fee payable for the examination?

The candidate need to pay a fee of Rs.1500/- (Rupees Fifteen hundred only) with every
enrolment. You need to pay the fee online by using Credit Card / Debit Card / Net Banking.

Ques. 15 What is the mode of Examination?

The examination will be conducted online (computer-based in a proctored environment)

with objective multiple choice questions and the duration will be two hours.

Ques. 16 Where this examination will be held?

The examination centres are spread across 100+ locations in the country.

Ques. 17 When is the examination held?

The examination can be taken on all days beginning 1st January, 2018 from 9.30AM to
5.30PM at the designated 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/.

Ques. 18 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 attempt.

Ques. 19 Case laws up to which date are covered in the syllabus?

Cases up to 31st December, 2017 are covered in the syllabus.

Ques. 20 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.

Ques. 21 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).

Ques. 22 Can I have an idea of the structure of the question paper before the
examination?

A sample question paper is available at http://ibbi.gov.in/limited-insolvency.html

Ques. 23 Can an applicant get refund of the fee, if he/she does not take the Limited
Insolvency 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 rescheduling is allowed.

Ques. 24 Whether members of CA/CS/CWA who are in employment are eligible to appear
for Limited Insolvency Examination?

Yes, members who are in employment and holding membership for 10 years or more can
appear for Limited Insolvency Examination. If they clear the exam, they will be eligible to get
passing certificate from IBBI. However, to be registered as Insolvency Professional, the
member has to leave his employment.

Ques. 25 Where I can get the detailed syllabus for the Limited Insolvency Examination

For detailed syllabus for the Limited Insolvency Examination please visit:
https://iiipicai.in/index.php?option=com_content&view=article&id=96:limited-insolvency-
examination-from-1st-january-2018&catid=9:latest-announcements&Itemid=188 or
http://www.ibbi.gov.in/syllabus2nov.html

Ques. 26 Can I refer books or other material during the examination?

No. It is not an open book examination.

Ques. 27 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.
A candidate can visit http://iiipicai.in/learning. The e-learning covers the entire syllabus for
the Limited Insolvency Examination in the form of presentations and which are
supplemented by mock tests in each component of the syllabus.

Ques. 28 How can I use the E-learning module of Limited Insolvency Examination?

The procedure to use the e-learning module:

 Open www.iiipicai.in site
 Open E- learning at the home page
 Click on the Knowledge Gateway
 Registered users can use the platform after login
 New users are required one time registration. The registration procedures are:
o Click on ‘sign up’ at login page
o A registration form will open. Fill the form.
o They will be provided login details
o Now you can use the platform with the login details provided

Ques. 29 Whether one can apply for re-evaluation of answer sheet?

Since the answer paper is checked by computer without any human intervention, no re-
evaluation 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 center) 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.

Ques. 30 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.
Ques. 31 How long is the certificate valid?

The certificate is valid for life.

Ques. 32 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.
Ques. 33 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.
Ques. 34 Whom should I contact for any clarification about the examination?

You may send an e-mail at or exam@ibbi.gov.in. You may also call

up on number +91 8080806476.

Registration Process & Fees

Ques. 35 What is the registration process to be followed to register as an Insolvency

Professional?

An individual enrolled with an Insolvency Professional Agency as a professional member

may make an application to the Board in Form A of the Second Schedule of the IBBI
(Insolvency Professionals) Regulations, 2016.

The detailed process to register as an Insolvency Professional is as follows:

 Fill the online application Form A available at

http://www.iiipicai.in/registration/form-a to Indian Institute of Insolvency
Professionals of ICAI (IIIPI) for registration.
 Attached all the relevant documents (self-attested) while filing the form. Please
ensure that size of the documents be less than 1 mb.
 Take a print out of the filled in Form A before submission.
 Sign and send the hard copy of the Form A with the documents along with two
separate Cheques (CBS)/Demand Drafts (Payable at New Delhi) of Rs. 10000/- each
to be prepared in favour of (1) “Insolvency and Bankruptcy Board of India” and (2)
“Indian Institute of Insolvency Professionals of ICAI” to The Secretariat, Indian
Institute of Insolvency Professionals of ICAI (IIIPI), 3rd Floor, Hostel Block, A- 29,
Sector- 62, Noida – 201309, Phone: +91 120 3045960.

Ques. 36 List of documents to be attached while filing the application (Form A) for
registration as an Insolvency professional?

The lists of documents (self-attested copies) (as applicable) to be attached while filing
application for Registration as an Insolvency professional is as follows:
I. Passport size photograph (one)
II. Aadhar card
III. PAN card
IV. Certificate of Graduation
 V. Certificate of Post-Graduation (if any)
VI. In case the applicant is a member of ICAI/ICSI/ICAI (Cost)
 Final Examination Certificate
 Membership Certificate
 Certificate of Practice
 Others if any
VII. In case the applicant is an Advocate
 Certificate of Bachelor of Law
 Certificate issued by the Bar Council
VIII. Certificate of passing Limited Insolvency Examination
IX. Experience Certificate(s) in case of Employment
X. Limited period registration Certificate issued by IBBI
XI. Acknowledgement of last three years ITR
XII. Others if any

Ques. 37 How much fees to be paid for registration as an Insolvency Professional?

The applicant has to pay the non-refundable application fees as follows:

 Fees of Insolvency and Bankruptcy Board of India (IBBI) - Rs. 10,000/- (Ten Thousand
only) plus GST @ 18%.
 Fees to Indian Institute of Insolvency Professionals of ICAI (IIIPI):-
 Rs. 10,000/- (Rupees Ten Thousand only) as Annual membership fee and Rs.
2000/- (Rupees Two Thousand only) as Enrolment Fee plus GST @ 18%.
 Fees is charged half i.e. Rs. 5000/- (Rupees Five Thousand only) as Annual
Membership Fee and Rs. 1000/- (Rupees One Thousand only) as Enrolment
Fee w.e.f. 1st October of each financial year plus GST @ 18%.
 The Cheques (CBS)/Demand Drafts (Payable at New Delhi) should be drawn in favour
of (1) “Insolvency and Bankruptcy Board of India” and (2) “Indian Institute of
Insolvency Professionals of ICAI”
 Please note that if the fee cheque(s) submitted by the applicant is/are not cleared
and returned by the Bank, the application will be liable to be rejected.

Ques. 38 What is the Annual membership Fees of IIIPI?

Members enrolled with IIIPI have to pay an Annual membership fee Rs. 10,000/- (Rupees
Ten Thousand only) plus applicable taxes for each Financial Year (to be paid before 30th April
of Every Year)

Ques. 39 How could I know that my filled in Form A have been uploaded correctly?

An auto acknowledgement is being sent to the registered email id submitted in the

form. You can check your filled in details from there.

Ques. 40 What can happen if Board refuses to grant Certificate?

If, after considering an application made under Regulation 6, the Board is of the prima facie
opinion that the registration ought not be granted, it shall communicate the reasons for
forming such an opinion and give the applicant an opportunity to explain why his application
should be accepted, within fifteen days of the receipt of the communication from the Board,
to enable it to form a final opinion.
Ques. 41 In what time period Board shall communicate its decision about its rejection or
acceptance of application?

After considering the explanation, if any, given by the applicant under sub-regulation (1),
the Board shall communicate its decision to-
(a) accept the application, along with the certificate of registration, or
(b) reject the application by an order, giving reasons thereof, within thirty days of receipt of
the explanation.

Ques. 42 Whether an Insolvency Professional can temporary surrender his certificate of

registration?

As per Regulation 10 of Chapter IV of Insolvency and Bankruptcy Board of India (Insolvency

Professionals) Regulations, 2016; an Insolvency Professional can temporary surrender his
certificate of registration. In this case, Insolvency Professional Agency shall inform the Board
if any of its professional members has temporarily surrendered his certificate of
membership after temporary surrender not later than seven days from approval of the
application for temporary surrender.

Ques. 43 Whether an Insolvency Professional can revive his certificate of registration after
temporary surrendering the same?

Yes, an Insolvency Professional can revive his certificate of registration after temporary
surrendering the same. In this case, In this case, Insolvency Professional Agency shall inform
the Board if any of its professional members has revived his certificate of membership after
temporary surrendering of the certificate of registration not later than seven days from
approval of the application for renewal.

Registration Certificate

Ques. 44 What are the conditions to grant certificate of registration to an IP?

Certificate of registration is granted by the IBBI in Form B of Second Schedule of Insolvency

and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016. The conditions
to for issuing a Certificate of Registration to Insolvency professional are as follows:

 At all times abide by the Code, rules, regulations, guidelines and the bye-laws of the
Insolvency Professional Agency with which he is enrolled.
 At all times continue to satisfy the requirements under Regulation 4.
 Shall pay a fee of ten thousand rupees to the Board, every five years after the year in
which the certificate is granted.
 Shall not render services as an Insolvency Professional unless he becomes a partner
or director of an Insolvency Professional Entity recognised by the Board, if he is not a
citizen of India.
 He should take prior permission of the Board for shifting his professional
membership from one Insolvency Professional Agency to another, after receiving no
objection from both the concerned Insolvency Professional Agencies.
 He should take adequate steps for redressal of grievances.
 Shall maintain records of all assignments undertaken by him under the Code for at
least three years from the completion of such assignment.
 He should abide by the Code of Conduct specified in the First Schedule to IP
Regulations
  He should abide by such other conditions as may be imposed by the Board.

Ques. 45 Who will issue the registration certificate?

The registration certificate as an IP will be issued by IBBI.

Miscellaneous

Ques. 46 In what circumstances, Board can issue show cause notice to an Insolvency
Professional?

As per Sub- Regulation 1 of Regulation 11 of Chapter IV of Insolvency and Bankruptcy Board

of India (Insolvency Professionals) Regulations, 2016; Based on the findings of an inspection
or investigation, or on material otherwise available on record, if the Board is of prima facie
opinion that sufficient cause exists, in that case show cause shall be issued to the insolvency
professional.

Ques. 47 What are the Code of Conduct for Insolvency Professionals?

As per Regulation 7(2)(g) of First Schedule of Insolvency and Bankruptcy Board of India
(Insolvency Professionals) Regulations, 2016; there are certain Code of Conduct for
Insolvency Professionals which are available at:
http://iiipicai.in/PDF/Regulations/Insolvency%20and%20Bankruptcy%20Board%20of%20Ind
ia%20(Insolvency%20Professionals)%20Regulations,%202016.pdf

Ques. 48 Bye-Laws of Indian Institute of Insolvency Professionals of ICAI (IIIPI).

The Bye-Laws of is available at: https://iiipicai.in/PDF/Bye_Laws/Bye-

Laws%20of%20Indian%20Institute%20of%20Insolvency%20Professionals%20of%20ICAI.pdf

Contact Details of IIIPI

Ques. 49 What is the contact detail of IIIPI?

Secretariat, Indian Institute of Insolvency Professionals of ICAI (IIIPI), 3rd Floor, Hostel Block,
A- 29, Sector- 62, Noida – 201309, Phone: +91 120 3045960, Email: ipa@icai.in. For any
other details please visit: www.iiipicai.in