India's Insolvency Professionals or IPs have a significant impact on bankruptcy resolutions. Reports show that a majority of IPs in India are men in the 40 to 70 age group who serve as charted accountants. Out of the 4,352 registered IPs in the nation, only 10 per cent are female whereas only 7 per cent are under 40 years old. Since charted accountants are experts in finance-related matters, about 55 per cent are IPs. In addition to this, 17 per cent work as corporate secretaries, 6 per cent as lawyers, and 5 per cent as cost accountants.
IPs act as the backbone of India's insolvency ecosystem serving as liquidators or bankruptcy trustees. Due to gender biases and a perceived lack of appropriate experience, fewer women work as IPs. Initiatives driven in order to encourage and support more gender parity can aid in reducing this inequality. IPs uphold the highest standards of professionalism and ethics and, therefore play a major role in the stability and fairness of India's insolvency system.
Comparative lack of relevant experience and Gender perception are the two vital factors that hinder women to practice IPs, said Misha, Partner at Shardul Amarchand Mangaldas & Co. She further mentioned, "As an insolvency professional one is expected to deal with several operational as well as process related issues while dealing with multiple stakeholders at the same time. The perception is that the role may not be entirely suitable for women, though it is far from reality."
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