Women Participation As Insolvency Professionals Abysmally Low - IBBI Data

The participation of women as insolvency professionals in India’s insolvency resolution landscape remains abysmally low even after five years of the Insolvency & Bankruptcy Code (IBC) 2016.

Out of total 4,175 registered insolvency professionals, women’s share stood at only 408, which is less than 10% of the total number, according to the Insolvency & Bankruptcy Board of India’s (IBBI) September quarter report.

Out of the total number, more than 55%, or 2,312 such professionals, are chartered accountants and of this, only 203 are women, the data showed.

The number of company secretaries registered as insolvency professionals with the board stood at 705. Of this, a mere 125 are women.

Some of the prominent female resolution professionals include Vandana Garg, who handled the resolution process for Jyoti Structures Ltd., where the claim of financial creditors stood over 7,300 crore rupees ($894 million). This was one of the major 12 non-performing assets case referred by the Reserve Bank of India for mandatory resolution through the IBC.

Mamta Binani is another known female insolvency professional, who was the resolution professional for Synergies Dooray Automotive Ltd., the first ever case that was resolved under the bankruptcy law. Binani also was a liquidator for Sterling Biotech Ltd. and oversaw the company’s acquisition by the U.S.-based start-up Perfect Day Inc. as a going concern.

An individual, who has passed the limited insolvency examination, and is enrolled with an insolvency professional agency (IPA) as a professional member, as well as has required qualification and experience, can register as an insolvency professional with the IBBI.

To practice as an insolvency professional, after obtaining registration, one must hold authorization for assignment issued by IPA in order to accept or undertake any assignment as interim resolution professional, resolution professional, liquidator, bankruptcy trustee, authorized representative or in any other role under the bankruptcy code.

Out of total 4,175 registered insolvency professionals, only 2,517 have such authorization for assignment, the latest IBBI data showed.

(Note: 1$ = 81.6567 Indian rupees)