International Valuation Standards Notified for Valuations under IBC: IBBI

On April 1, 2026, the Insolvency and Bankruptcy Board of India issued a circular notifying the International Valuation Standards (IVS) issued and updated from time to time by the International Valuation Standards Council (IVSC) as the applicable standards for valuations conducted under the Insolvency and Bankruptcy Code, 2016.

The standards will be applicable to the following provisions of the amended regulations under the Insolvency and Bankruptcy Code, 2016:

(i) Regulation 35(1)(c), CIRP Regulations, 2016
Requires the registered valuers to provide a fair value report based on notified valuation standards after physical verification of assets.

(ii) Regulation 35(3), Liquidation Regulations, 2016
Mandates that where fresh valuation is required in liquidation, the liquidator must appoint registered valuers to determine the realisable value of assets based on notified valuation standard.

(iii) Regulation 3(1)(b), Voluntary Liquidation Regulations, 2017
Requires that the declaration of solvency by Diirectors/Partners be supported by prescribed documents, including audited financials, a registered valuer’s asset valuation report, and disclosures of pending proceedings or litigations, prepared in accordance with Board-notified formats.

(iv) Regulation 39(1)(c), Pre-packaged Insolvency Resolution Process Regulations, 2021
Requires each registered valuer, after physical verification of the corporate debtor’s assets, to submit a report determining fair value and liquidation value in accordance with notified valuation standards.

(v) Regulation 30(2), Bankruptcy Process for Personal Guarantors Regulations, 2019
Requires the bankruptcy trustee to obtain valuation of the bankrupt’s assets through a registered valuer where necessary.

The circular is effective from April 1, 2026, and applies to all valuations made under the code and underlying regulations.