IBBI Amends Valuation and Registered Valuer Framework

On May 19, 2026, the Insolvency and Bankruptcy Board of India (IBBI) notified amendments introducing changes relating to the appointment of registered valuers under liquidation proceedings, corporate insolvency resolution processes (CIRP) and pre-packaged insolvency resolution processes (PPIRP). The amendments to the PPIRP framework also introduce changes concerning the determination of fair value and liquidation value of the corporate debtor.

The amendments include the Insolvency and Bankruptcy Board of India (Liquidation Process) (Third Amendment) Regulations, 2026; the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2026; and the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Second Amendment) Regulations, 2026.

Earlier this year, the IBBI had undertaken significant valuation reforms under the insolvency framework, including changes relating to enterprise valuation, determination of fair value and liquidation value, valuation standards and valuation reports.

The amendments follow proposals previously considered by the IBBI in its June 2024 discussion paper on rationalising the appointment of registered valuers, particularly for MSMEs, as well as the broader valuation reform proposals contained in the discussion paper issued in November 2025, which subsequently led to the valuation framework changes introduced in February 2026.

IBBI (Liquidation Process) (Third Amendment) Regulations, 2026

The amendment modifies Regulation 35 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, relating to the appointment of registered valuers in liquidation proceedings involving MSMEs.

Amendment to Regulation 35

Regulation 35 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 deals with the valuation of assets intended to be sold during liquidation proceedings.

The Third Amendment inserts a proviso after Regulation 35(2), which provides that where the corporate debtor is a micro, small or medium enterprise under sub-section (1) of Section 7 of the Micro, Small and Medium Enterprises Development Act, 2006, the liquidator shall appoint one registered valuer for each asset class of the corporate debtor.

The proviso further provides that the liquidator may appoint two registered valuers for each asset class where, after consultation with the consultation committee, it decides to do so for reasons to be recorded in writing.

IBBI (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations, 2026

The amendment inserts a proviso after Regulation 27(1) of the Insolvency Resolution Process for Corporate Persons Regulations, 2016, relating to the appointment of registered valuers for MSME corporate debtors undergoing the corporate insolvency resolution process.

Amendment to Regulation 27

The amendment provides that where the corporate debtor is a micro, small or medium enterprise under sub-section (1) of Section 7 of the Micro, Small and Medium Enterprises Development Act, 2006, the resolution professional shall appoint one set of registered valuers.

However, the committee of creditors may decide, for reasons to be recorded in writing, to appoint two sets of registered valuers.

IBBI (Pre-Packaged Insolvency Resolution Process) (Second Amendment) Regulations, 2026

The amendment substitutes Regulation 38 of the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) Regulations, 2021, relating to the appointment of registered valuers and determination of fair value and liquidation value.

Substitution of Regulation 38

The substituted Regulation 38 provides that the resolution professional shall, within three days of his appointment, appoint a set of registered valuers to determine the fair value and liquidation value of the corporate debtor. The committee may, for reasons to be recorded in writing, decide to appoint two sets of registered valuers.

The amendment also specifies categories of persons who shall not be appointed as registered valuers, including a related party of the corporate debtor, an auditor of the corporate debtor during the five years preceding the insolvency commencement date, and certain persons associated with the insolvency professional entity of which the resolution professional is a partner or director.

The amendment further substitutes Regulation 39(1) relating to the determination of fair value and liquidation value.

The substituted provision provides that where one set of registered valuers is appointed under Regulation 38, the fair value submitted by the coordinating valuer and the aggregate of the estimates of liquidation value submitted by the registered valuers in each asset class shall be considered as the fair value and liquidation value of the corporate debtor, respectively.

Where two sets of registered valuers are appointed under Regulation 38, the average of the two fair value estimates submitted by the coordinating valuers and the aggregate of the average of the two liquidation value estimates submitted by the registered valuers in each asset class shall be considered as the fair value and liquidation value of the corporate debtor, respectively.