Archive · 20 Nov 2025
IBBI Enhances IBC Valuation Process: Proposes New Guidelines
The Insolvency and Bankruptcy Board of India (IBBI) wants to make valuation reports for insolvent companies more consistent and reliable.
Right now, valuers don't use a standard format, which can cause arguments and delays.
The new rules will tell valuers what to include in their reports and how to document their work.
This will help the Committee of Creditors make better decisions about what to do with struggling companies.
IBBI aims to standardize valuation reports for insolvent companies under IBC
Current lack of standardization leads to inconsistencies and disputes
New guidelines cover documentation, report content, key parameters, and asset-specific formats
Experts suggest a balance between standardization and professional judgement
Valuation reports significantly influence CoC decisions on distressed companies' future
- Who
- Insolvency and Bankruptcy Board of India (IBBI), Registered Valuers, Committee of Creditors
- What
- Proposed guidelines for standardized valuation reports under IBC
- When
- During the insolvency resolution process
- Where
- In the Insolvency and Bankruptcy Code (IBC) process
- Why
- To improve consistency, transparency, and comparability in valuations
Pro-standardization
Pro-flexibility
Standardization Benefits
Pro-standardization
Promotes consistency and comparability
Pro-flexibility
May not fully capture value in all cases
- Law
- Insolvency and Bankruptcy Code (IBC)
- Purpose of New Guidelines
- Standardize valuation reports and documentation
- Current Issue
- Lack of standardization leading to inconsistencies and disputes
- Key Aspects Covered
- Documentation, report content, key parameters, asset-specific formats
- Influencing Factor
- Valuation reports significantly impact CoC decisions
