Circular No. No. IBBI/RV/103/2026, Dated 15-06-2026
The Insolvency and Bankruptcy Board of India (IBBI) has issued Guidelines for Conducting Valuation under the Insolvency and Bankruptcy Code, 2016 with the objective of promoting uniformity, transparency and consistency in valuation exercises undertaken during insolvency and liquidation proceedings.
The guidelines prescribe a standardised framework for the preparation of valuation reports and supporting documentation.
1. Uniform Framework for Valuation Reports
The guidelines establish minimum standards for conducting valuations and reporting valuation outcomes under the IBC framework.
The objective is to ensure greater consistency in valuation practices adopted by registered valuers across insolvency processes.
2. Minimum Reporting Requirements Prescribed
The guidelines specify the minimum reporting requirements to be followed while preparing valuation reports.
These requirements are intended to improve the quality, completeness and comparability of valuation reports submitted in insolvency proceedings.
3. Asset-Specific Valuation Formats Introduced
To standardise reporting, the guidelines prescribe separate formats for valuation of different asset classes, including:
3.1. Land and Buildings
Specific reporting requirements have been prescribed for valuation of immovable properties such as land and buildings.
3.2. Plant and Machinery
The guidelines provide a structured format for valuation of plant, machinery and related industrial assets.
3.3. Securities and Financial Assets
Separate reporting requirements have been prescribed for valuation of securities and financial assets.
4. Valuation Parameters for Receivables
The guidelines also specify key parameters to be considered while valuing receivables.
This is intended to bring greater consistency in the assessment of recoverable value and associated assumptions.
5. Duties of Registered Valuers and Coordinating Valuers
The framework outlines the responsibilities of:
- Registered Valuers; and
- Coordinating Valuers
in conducting valuation assignments and preparing valuation reports.
These provisions seek to enhance accountability, transparency and professional standards in the valuation process.
6. Objective of the Guidelines
The guidelines aim to:
- Standardise valuation methodologies and reporting practices;
- Improve transparency and reliability of valuation reports;
- Promote consistency across insolvency proceedings;
- Strengthen stakeholder confidence in valuation outcomes; and
- Enhance the overall efficiency of the insolvency resolution and liquidation framework.
7. Expected Impact
The introduction of standardised reporting formats, asset-specific requirements and clearly defined responsibilities for valuers is expected to improve the quality and comparability of valuations conducted under the IBC. The guidelines will help ensure greater transparency and consistency in determining asset values during insolvency and liquidation processes.
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