A Blueprint to Pass the Limited Insolvency Exam: Exam Structure & Essential Tips

The Limited Insolvency Exam, conducted by the Insolvency and Bankruptcy Board of India (IBBI), is a crucial step for professionals aspiring to become Insolvency Professionals (IPs) under the Insolvency and Bankruptcy Code (IBC), 2016. This exam is not just a test of knowledge but an in-depth evaluation of candidates’ knowledge, understanding, and ability to handle the insolvency resolution, bankruptcy, and liquidation process for companies, partnerships, and individuals under the IBC 2016.

Strategic preparation and a thorough understanding of the structure of the Limited Insolvency Exam are paramount for passing and starting off on the right foot in this highly specialised field.

IBBI’s Limited Insolvency Exam Structure?

The Limited Insolvency Exam consists of a single online paper to be completed within 2 hours. The examination centers are strategically located at multiple sites nationwide.?

Here’s a breakdown of the exam structure:

• Duration: 2 hours
• Type of Question: The paper comprises objective-type multiple-choice questions (MCQs).
• Number of Questions: 65 Questions
• Total Marks: The examination is scored out of 100 marks.?
• Questions Weightage: The questions are weighted differently; 30 questions carry one mark each, while 35 questions are worth two marks each. No marks will be awarded for an unattempted question.
• Topics Weightage: The topics are weighted differently-

1. The Insolvency and Bankruptcy Code, 2016 (Code): 4%
2. All Rules and Regulations under the Code: 6%
3. Business Laws: 4%
4. General Laws: 7%
5. Finance and Accounts: 2%
6. General Awareness: 2%
7. Case Laws: 5%
8. Case Studies: 70%

• Negative Marking: A negative marking scheme is in place, with a 25% deduction for each incorrect answer.
• Passing Marks: The candidate must secure 60% of the total marks to pass.?

Tips for Strategic Preparation

1. Comprehensive Study Plan

To create a detailed study plan that covers every aspect of the exam syllabus, assess your strengths and weaknesses of the topics. Prioritize your weaknesses and high-weightage topics and schedule regular revision sessions to reinforce your knowledge.

Aim for at least 100-120 hours of preparation. Set SMART goals for each study session to keep focused and track your progress effectively.?

2. Practice With Mock Tests

Preparing for this examination is a rigorous process that demands a thorough understanding of both theoretical and practical applications. In such a case, a practice exam is an indispensable tool for candidates aiming to excel. It can help build confidence, improve time management skills, and retention.

Tranzission’s Limited Insolvency Practice Exam (LIPE) provides a realistic exam experience aligned with the latest syllabus, helping to reduce anxiety and familiarize you with the format. It also offers detailed feedback, which can help you identify knowledge gaps and understand the impact of negative marking. One can take advantage of Tranzission's Free Mock Exam, which is an excellent resource for understanding the types of questions asked and familiarizing oneself with the exam atmosphere.

3. Study from the Bare Act

Often, candidates ask whether IBBI provides study material. The answer is no. This naturally leads to the question of which books to buy to pass the exam. Our suggestion is to study directly from bare acts. This approach ensures thorough preparation and a robust understanding of the material. However, a common challenge is that the bare acts must be updated to the current cut-off date, which is 31st March, 2023. The two-part bare acts compilation available at tranzission.com is highly useful; in fact, it is the only resource that offers bare acts aligned with the syllabus.

4. Seek Professional Guidance and Leverage Courses

Consult experienced insolvency professionals who have successfully passed the LIE for invaluable insights and practical tips. Enroll in specialized courses, like Tranzission’s SureShot IP - Recorded Lectures for LIE, to benefit from structured learning and practice sessions and engage in study groups to discuss topics and stay motivated.

5. Leverage FREE Study Resources

Take advantage of FREE Resources and Quick Tips available on Tranzission’s website. These resources are designed to complement your Limited Insolvency Exam preparation. They offer concise, focused insights that are easy to integrate into your daily study routine.?

Conclusion

Passing the Limited Insolvency Exam requires thorough preparation and a strategic approach. By understanding the exam structure, following these tips, and using Tranzission’s resources, you can significantly increase your chances of success.