As the menace of Covid-19 pandemic continues with no resolution in sight, the insolvency regulator IBBI has now allowed online delivery of educational course and professional development sessions on Insolvency and Bankruptcy Code (IBC) to continue till December 31 this year.

It has now extended the validity of its 2020 issued guidelines on online delivery of educational course and continuing professional education till December 31, 2021. The validity of these guidelines are due to end on September 30, but now extended till December 31, sources said.

The latest Insolvency and Bankruptcy Board of India (IBBI) move will benefit thousands of insolvency professionals (IPs) as well as those IPs and valuation professionals who have to undertake continuing professional education from Insolvency Professional Agencies (IPAs) and Registered Valuers Organisations (RVOs).

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To ensure that online delivery of educational course and continuing professional education is as effective as classroom delivery of education, the IBBI had in July last year come up with guidelines that govern the online delivery of education by IPAs and RVOs.

The online delivery can continue wherever possible and would be in addition to the classroom mode, the IBBI had then said.

Only licensed software

Among other things, the new guidelines had stipulated that only the licensed version of a software can be used for the courses. It should be user-friendly and have appropriate security features.

The IPA/RVO should provide a compliance report to the IBBI in respect of each course within seven days of the conclusion of the course. Also, records of every course should be maintained for at least three years, the guidelines issued last year in July had said.

Experts’ take

Ashish Chhawchharia, Partner and National Head - Restructuring Advisory at Grant Thornton Bharat, said: “Taking cognisance of the prevailing uncertainties, IBBI has pro-actively extended the online delivery mode of these professional development sessions, in a well thought out move. This is hugely beneficial to professionals as this period is not wasted or goes unproductive. In my view, even in the post pandemic work culture, preference should be given to a healthy hybrid option, as we have all witnessed more efficiency there.”

Nishant Singh, Partner, IndusLaw, a law firm, said that RP continuing education programme is the lynchpin to maintain robust ecosystem of RPs who are well equipped to handle the distressed asset resolution. Allowing RPs to continue this process of continuing legal education through the online medium is a progressive move, Singh said. In the future, edtech or online education will be a more productive, efficient and accessible way to deliver and share knowledge, he added.