IBBI limits number of attempts at Limited Insolvency Examination

The Insolvency Bankruptcy Board of India (IBBI) on Monday modified the scheme of the Limited Insolvency Examination (LIE) and Valuation Examination by introducing restrictions on the frequency of attempts undertaken by aspiring insolvency professionals..As per the circular, the number of attempts will limited to 6 in span of 12 months."In order to bring in objectivity and improvements in the scheme of above examinations, it has been decided that frequency of attempt in an LIE or valuation examination, as the case may be, for every candidate, shall be determined after taking into account a cooling off period of 2- months between each consecutive attempts of such candidate, thereby making a total of 6 attempts in a period of 12 months," the circular reads..This essentially means that all aspiring insolvency professionals willing to be registered with IBBI have to observe a cooling-period of 2 months between each consecutive attempt. Previously, there were no such limitations, and candidates were free to sit for as many attempts as they wished, subject to re-filling of the application form along with the desired fee..This upper limit of a total of 6 attempts in a span of 12 years will be implemented after a period of 3 months from the date of this circular. Consequently, starting from September 6, 2022, all candidates will have only 6 attempts in a span of 12 months to clear the examination..To be registered as an insolvency professional under the Insolvency and Bankruptcy Code, 2016, the appearing candidate must pass the LIE.Regulation 3 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, empowers IBBI to determine the syllabus, format and frequency of the exam..IBBI, in collaboration with the Indian Institute of Corporate Affairs and National Law Institute University (NLIU) Bhopal, runs a two-year course under the name “Graduate Insolvency Program” for those who aspire to an insolvency professional. A student who completes the GIP is eligible to be registered as an insolvency professional under the Code..[Read circular]