Insolvency and Bankruptcy - Law and Practice · Professional and Ethical Practices for Insolvency Practitioners

Insolvency Professionals under the IBC: Registration and Functions

Updated 11 October 2026 · Fact-checked

An insolvency professional (IP) is a person who first becomes a member of an insolvency professional agency, then registers with the Insolvency and Bankruptcy Board of India, and then runs insolvency, liquidation or bankruptcy processes under the Code. Section 208 sets out the IP's functions and code of conduct. Answer by stating the provision, applying the facts, then concluding.

Understand Insolvency Professionals under the IBC

The IBC does not let anyone handle an insolvency process. The person who runs the process must be a regulated professional. That person is the insolvency professional. Think of the IP as the person who actually carries out the process on the ground, under the supervision of the Adjudicating Authority and the creditors.

The Code builds a two-layer regulatory chain. The first layer is the insolvency professional agency (IPA). An IPA must hold a certificate of registration from the Board before it can enrol IPs as members (Section 199). The second layer is the Insolvency and Bankruptcy Board of India (the Board). Under Section 207(1), every IP must, after obtaining membership of an IPA, register with the Board within the time, in the manner and on the fee specified by regulations. So membership comes first, then registration.

The Board decides the kind of people who can be IPs. Section 207(2) lets the Board specify categories of professionals or persons with qualifications and experience in finance, law, management, insolvency or any other field it thinks fit. The detailed eligibility conditions (education, experience, examination, fit and proper person test) sit in the Board's regulations and the IPA bye-laws, not in the Code text. Check the current regulations when you prepare, and do not guess the numbers.

Once registered, the IP acts in the processes named in Section 208(1). These are the fresh start process, the individual insolvency resolution process, the corporate insolvency resolution process, the pre-packaged insolvency resolution process, the individual bankruptcy process and the liquidation of a corporate debtor firm. In practice the IP may act as interim resolution professional, resolution professional, liquidator or bankruptcy trustee, depending on the process.

The IP is also bound by a statutory code of conduct in Section 208(2). Breach can lead to disciplinary action by the IPA or the Board. This is why the topic links closely with the code of conduct and the disciplinary proceedings topics.

Key rules to remember

Registration sequence (Section 207(1)): Membership of an IPA → registration with the Board → function as IP; The Code says an IP registers with the Board after obtaining IPA membership. Do not reverse the order.
Functions of an IP (Section 208(1)): Take necessary actions in: fresh start; individual insolvency resolution; corporate insolvency resolution; pre-packaged insolvency resolution; individual bankruptcy; liquidation of a corporate debtor firm; The duty arises where the relevant process has been initiated. Clause (ca) on the pre-pack was inserted in 2021.
Pre-pack IP before initiation (Section 208(1A)): IP proposed as resolution professional and approved under Section 54A(2)(e) → acts before the pre-pack process starts; The IP performs functions and duties needed before the pre-packaged process is initiated.
Code of conduct (Section 208(2)): (a) reasonable care and diligence; (b) comply with IPA bye-laws; (c) allow the IPA to inspect records; (d) submit copy of records of every proceeding before the Adjudicating Authority to the Board and the IPA; (e) perform functions as specified; Five items. Learn them as a list with the key word in each.
Board's power on registration (Section 196(1)(a)): Board registers IPAs, IPs and information utilities, and may renew, withdraw, suspend or cancel registration; Use this to show the Board's control over the IP's registration.
Registration of IPAs (Section 199): No registration certificate from the Board → no business as an IPA and no enrolling of IPs; Applies 'save as otherwise provided in this Code'.
Functions of an IPA (Section 204): Grant membership; set conduct standards; monitor members; safeguard members' interests; suspend or cancel membership; redress grievances; publish information; Seven functions, clauses (a) to (g).

How to solve Insolvency Professionals under the IBC questions

Most questions on this topic ask you to explain a provision, or to decide whether a person can act or has breached a duty. Use the same frame every time.

1Identify what is asked: eligibility, registration, functions, code of conduct, or a regulator's power.
2Name the actor: the IP, the IPA or the Board. Many marks are lost by mixing up their roles.
3State the provision in plain words, citing Section 207, 208, 204, 199 or 196 only where you are sure of it.
4For registration, give the sequence: IPA membership first, then registration with the Board, as the Board specifies by regulations.
5For functions, link the process in the facts to the correct clause of Section 208(1).
6Apply the facts: check each limb of the code of conduct against what the IP did.
7Conclude clearly: valid or invalid, breach or no breach, and who can act (IPA or Board).
8Add a practical point such as keeping records, filing copies with the Board, or acting with diligence.

Quickest way: Who, order, list

When to use it: Use when you have little time and the question is a short explain or state-the-provision type.

Who: write one line defining the IP as a member of an IPA registered with the Board.
Order: write membership of an IPA, then registration with the Board (Section 207).
List: write the processes in Section 208(1) in one line.
Conduct: write the five code of conduct items in short form.
Close with one line on the Board's power to suspend or cancel registration.

Common mistakes in Insolvency Professionals under the IBC

Saying an IP registers with the Board first and then joins an IPA.
Students think of the Board as the main regulator and assume it acts first.
Fix: Remember Section 207(1): the IP registers with the Board after obtaining IPA membership.
Quoting exact educational or experience conditions from memory as if they were in the Code.
Eligibility is taught from regulations and bye-laws, and students mix them up with the Code.
Fix: State that Section 207(2) lets the Board specify categories, and that detailed conditions are in the Board's regulations and IPA bye-laws. Quote numbers only if you are sure of them.
Confusing the functions of the IPA with those of the Board.
Both monitor and discipline, so the roles look similar.
Fix: The IPA enrols and monitors its members (Section 204). The Board registers IPAs and IPs and can inspect and investigate them (Section 196).
Leaving out the pre-packaged process or the liquidation of a corporate debtor firm from the list of IP functions.
Students learn only the corporate insolvency resolution process.
Fix: Learn all six processes in Section 208(1), including clause (ca) for the pre-pack.
Listing fewer than five items of the code of conduct or missing the duty to send records to both the Board and the IPA.
Students remember diligence and compliance but forget record-related duties.
Fix: Use the key words: care, bye-laws, inspect, submit, specified. Note that copies go to both the Board and the IPA.

Worked examples

Example 1

Rohan Mehta, a chartered accountant, wants to act as a resolution professional in a corporate insolvency resolution process. He has been enrolled as a member of an insolvency professional agency but has not yet registered with the Insolvency and Bankruptcy Board of India. Can he act? Explain with reference to the Code.

Show the solution

Provision: Section 207(1) requires every insolvency professional, after obtaining membership of an IPA, to register with the Board within the time, in the manner and on the fee specified by regulations.
Provision: Section 208(1)(c) makes it the function of an insolvency professional to take necessary actions in the corporate insolvency resolution process.
Facts: Rohan has completed the first step, which is IPA membership. He has not completed the second step, which is registration with the Board.
Analysis: Membership alone does not complete the statutory route. The Code treats registration with the Board as a step the IP must take after membership.
Conclusion and practice point: Rohan should first complete registration with the Board in the manner specified by regulations, and only then accept appointment.

Answer: Rohan should not act until he registers with the Board. Under Section 207(1) he must register with the Board after obtaining IPA membership. He can then perform the functions in Section 208(1)(c).

Example 2

Meera Iyer, an insolvency professional, is the resolution professional of Sunrise Textiles Limited. Her IPA asks to inspect her records of the process. Meera refuses, saying the records belong to the process and are confidential. She also does not send the Board a copy of the records of the proceedings before the Adjudicating Authority. Advise on her position.

Show the solution

Provision: Section 208(2) sets the code of conduct for every insolvency professional.
Clause (c): the IP must allow the insolvency professional agency to inspect her records.
Clause (d): the IP must submit a copy of the records of every proceeding before the Adjudicating Authority to the Board and to the IPA of which she is a member.
Facts: Meera refused inspection by the IPA, which is a breach of clause (c). She did not send the Board a copy of the records, which is a breach of clause (d).
Consequence: Under Section 204(c) and (e), the IPA monitors its members and can suspend or cancel membership on grounds in its bye-laws. Under Section 196(1)(a) and (f), the Board can inspect and investigate, and can suspend or cancel registration.
Conclusion: confidentiality is not a defence to the specific duties in Section 208(2). Meera should allow inspection and file the copies.

Answer: Meera has breached Section 208(2)(c) and (d). She can face action by the IPA under its bye-laws and by the Board, which may include suspension or cancellation. She should allow inspection and submit the records to both the IPA and the Board.

Exam tips

Write the chain IPA → Board → IP in the first line. It shows the examiner you know the structure.
Cite Section 208(2) and list all five items whenever the facts show a lapse by an IP.
For eligibility questions, mention Section 207(2) and the Board's regulations. Do not invent figures. Say that detailed conditions are in the regulations and bye-laws.
Keep the IP, IPA and Board separate in case studies. State who has the power to act in the answer.
Use a short heading style in answers: provision, analysis, conclusion. Add a drafting or compliance point at the end.

Practice questions from Professional and Ethical Practices for Insolvency Practitioners

Insolvency Professionals under the IBC in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CMA FinalIBC 2016 Overview, Definitions and Authorities

Insolvency Professionals under the IBC: frequently asked questions

Who is an insolvency professional under the IBC?

An insolvency professional is a person who is a member of an insolvency professional agency and is registered with the Insolvency and Bankruptcy Board of India. Such a person conducts insolvency, liquidation and bankruptcy processes under the Code. Section 208 lists the processes and the code of conduct.

What is the registration process for an insolvency professional?

The person first obtains membership of an insolvency professional agency under its bye-laws. After that, under Section 207(1), the person registers with the Board within the time, in the manner and on the fee specified by regulations. The Board may also specify the categories of persons who qualify under Section 207(2).

What are the main functions of an insolvency professional?

Section 208(1) makes the IP responsible for taking necessary actions in the fresh start process, individual insolvency resolution, corporate insolvency resolution, pre-packaged insolvency resolution, individual bankruptcy and liquidation of a corporate debtor firm. These actions apply once the process has been initiated. The IP must also follow the code of conduct in Section 208(2).

What is the difference between an IPA and the Board?

An IPA enrols insolvency professionals as members, sets conduct standards, monitors them and can suspend or cancel their membership under its bye-laws. The Board registers IPAs and IPs, makes regulations, inspects and investigates, and can suspend or cancel registrations. An IPA itself needs a certificate of registration from the Board.