Graduate Insolvency Programme Common Entrance Test 2022

Graduate Insolvency Programme Common Entrance Test 2022 (GIPCET) shall be

conducted by an online mode where the paper will have 100 questions from eight areas -
Ethics, Domain Knowledge, Legal Aptitude, Financial Aptitude, General Knowledge &
Current Affairs, Elementary Mathematics (Numerical Ability), Logical Reasoning and
General English.

Scope and coverage of questions under different subject areas:

1. Ethics: Ethics will test the candidates’ ethical behaviour. It will test how they address conflict
of interest and ethical dilemmas. It shall further asses them on their understanding of personal
ethics and organisational ethics.

2. Domain Knowledge: While the candidates’ will not be tested on the in-depth provisions of
insolvency law, they will be asked general questions on insolvency and its ecosystem.

3. Legal Aptitude: This section will test candidates' interest towards the study of law, research
aptitude and problem-solving ability. The candidates’ ability to apply legal mind into real life
situations will also be tested. General principles of the Constitution of India, securities,
contract, companies, property and other laws will be tested.

4. Financial Aptitude: This section will test the candidates' basic understanding of the
economy, financial markets, finance, accounting, audit, and taxation.

5. General Knowledge and Current Affairs: General knowledge will be tested on general
awareness including static general knowledge. This section will test the understanding of
candidates’ general awareness on national as well as international affairs.

6. Mathematics: This section will test the candidates' knowledge on elementary mathematics,
i.e. Maths taught up to 10th Class/standard.

7. Logical Reasoning: This section will test the candidates' ability to identify patterns, logical
links and rectify illogical arguments. It may include a variety of logical reasoning questions
such as syllogisms, logical sequences, analogies, series, coding-decoding, directions etc. This
does not include testing of visual reasoning.

8. English including comprehension: The English section will test the candidates' proficiency
in English, based on comprehension passages and grammar. In the comprehension section,
candidates will be questioned on their understanding of the passage and its central theme,
meanings of words used therein, etc. The grammar section will require correction of incorrect
grammatical sentences, filling of blanks in sentences with appropriate words, etc.

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 Examination Structure

Exam Structure Details

Duration of the Test 90 minutes

Total Number of Question 100

Total Marks 100

Weightage/
S. No. Subject No. of Syllabus
Questions
Personal Ethics; Moral Dilemma; Ethics and Business;
1. Professional Ethics 20% and Conflict of Interest.
Struggles towards Convergence; The Evolution of
Modern Insolvency Systems and Corporate Rescue;
Business Rescue under old regimes; Protection of
Rights of Stakeholders; Credit Infrastructure in India;
Impact of Insolvency Laws on Society: Employment
Perspective; and Impact of Insolvency Laws on Society
and Business Rescue under the new regime.
Effective Management Strategy; Managing Employees;
Relationship with Stakeholder Groups; and Managing
Investor and Customer Relation.

Understanding why businesses fail; Asset

Reconstruction Companies; Debt Trading; UNCITRAL
2. Domain
15% Legislative Guide on Insolvency; Principles of the
Knowledge
World Bank; Introduction to Global Products;
UNCITRAL Model Law on Cross Border Insolvency;
Modernization of Insolvency Laws; INSOL Global
Principles; and EBDR Principles for IP.
Courts in India; Legal and Regulatory Framework of the
IBC. Four Pillars of IBC, viz. Insolvency
Professionals/Insolvency Professionals Agencies/
Insolvency Professional Entities, Insolvency and
Bankruptcy Board of India, Information Utilities and
Adjudicating Authorities( NCLT, NCLAT, DRT,
DRAT and the Supreme Court of India).

Common Law; Civil Law; the Constitution of India; the

3.
Legal Aptitude 10% Making of law (Legislating by Parliament and State
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 Assemblies); Public & Private Laws; Regulatory and
Administrative Systems in India; Indian Legal and
Institutional Framework; and Substantial and Procedural
laws.
i. Companies Act, 2013- Types of Companies;
Raising capital for the company; Role of Auditors;
Board Structure in Companies; Types of Directors
and their roles and responsibilities; and types of
charges.
ii. Contract Act 1872- Essentials for a Valid
Contract; Performance of a contract, Breach of
Contract.
iii. Sale of Goods Act, 1930- Definition of Sale; Sale
and Agreement to Sell; Rights of a Seller; and
Conditions and Warranties.
iv. Securities Laws.
v. Transfer of Property Act, 1882- Mortgage and
Sale; Types of Mortgage; Registration of Charges;
and Fixed and Floating Charge.
vi. Partnership Act, 1932- Formation and dissolution
of Partnership; and the Rights and Liabilities of
Partners.
vii. The Securitisation and Reconstruction of Financial
Assets and Enforcement of Securities Interest Act,
2002- Definition of security and secured creditor;
and the enforcement of security interest.
viii. Securities Contracts (Regulation) Act 1956- Stock
Exchanges; Conditions for Listing, Penalties under
the Law.
ix. The Recovery of Debts Due to Banks and
Financial Institutions Act, 1993-
x. Jurisdiction of the Tribunal; and Modes of
Recovery.
xi. Negotiable Instruments Act, 1881- Types of
Negotiable Instrument; and the bouncing of
Cheques and liabilities therein.

Fundamentals of Tax Laws; Concepts of Income; Profits

and Gains of business or profession; Capital Gains;
Income from other sources; Computation of net taxable
income; Tax Planning and Income-tax Payment;
Assessment of taxes; and GST.

Meaning, Need and Importance of finance; Financial

Markets; Long, Medium and Short-term Finance;
Concepts of Structured Finance; Financial Management;
4.
Financial Aptitude 10% Financial Risk Management; Business Analysis and
Valuation; Regulation of Financial Markets; Money and
Debt Market; Equity and Derivatives Markets; Rules
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 and Regulations of the Financial Market; Foreign
Exchange & Bond Markets; Financial Market
Instruments and Stock Exchanges; and Primary &
Secondary Markets. Valuation of Distressed Companies;
and the Bases of Valuation.

Economic System: Institutes, Economic theory and

History, Economic Systems: Traditional and Modern
and Command, Market, and Mixed; Concept of
Economic Freedom; Overview of Indian Economy; Law
and Economic Theory; Convergence and Divergence of
Economic Systems, Market-based Corporate
Governance and Corporate Control; India's Transition:
Freeing the economy and public finance in Indian
General economy.
5. Knowledge and 15%
Current Affairs Nature of International Economic Law; The Three
Regulatory Pillars of the World Economic Order: The
World Trade Organization (WTO), The International
Monetary Fund (IMF) and the World Bank; World Bank
Insolvency Regime Ranking Parameters, Regional
Economic Law Organizations, International Finance and
Foreign Direct Investment.

Understanding and interpreting data using tables,

graphs, and variables; Organization of the data;
Measures of center; Probability Distributions; Measures
6. Mathematics & of variation; Sampling Distributions; and Hypothesis
10%
Basic Statistics testing. Probability, Number Systems, Arithmetic,
Algebra, Mensuration.

Syllogisms, logical sequences, analogies, series, coding-

decoding, directions, identify patterns, logical links and
rectify illogical arguments Clocks, Seating
7. Arrangement, Blood , Relations (Family Tree), Logical
Logical Reasoning 10%
Sequence, Venn Diagrams, Direction sense and
Decision Making, Assumption, Premise, Conclusion

Introduction and Elements of Communication; Factors

Affecting Communication; The Writing Process;
English Challenges in Written Communication; Improving
Comprehension &
8. 10% Communication Effectiveness; Barriers to Effective
Communication
Skills Communication; Organizational Communication; and
Case Studies.

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