Guidelines for Conducting Valuation Under the Insolvency and Bankruptcy Code, 2016

Insolvency and Bankruptcy Board of India 7th Floor, Mayur Bhawan, Connaught Place, New Delhi – 110001

CIRCULAR

No. IBBI/RV/103/2026 15th June 2026

To All Registered Valuers All Registered Valuer Entities All Registered Valuer Organisations All Registered Insolvency Professionals All Registered Insolvency Professional Entities, and All Registered Insolvency Professional Agencies (By email to registered email addresses and on the website of the IBBI)

Dear Madam/Sir,

Subject: Guidelines for Conducting Valuation Under the Insolvency and Bankruptcy Code, 2016.

Valuation reports prepared under the Insolvency and Bankruptcy Code, 2016 (Code) are critical element to any process under the insolvency framework. They are essential for ensuring consistency, professionalism, transparency, comparability and trust in the valuation process, and thereby serve the public interest by promoting reliable and credible determination of value. Valuation reports must therefore be comprehensive, supported by adequate documentation, and prepared through a structured and well-reasoned assessment of the assets of the corporate debtor. Further, the reliability, credibility and adequacy of valuation reports are fundamental to achieving the objective of value maximisation under the Code.

2. Amended sub-regulation (1A) of regulation 35 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, sub-regulation (8) of regulation 35 of the IBBI (Liquidation Process) Regulations, 2016, clause (b) of sub-regulation (1) of regulation 3 of the IBBI (Voluntary Liquidation Process) Regulations, 2017, Sub-regulation (1A) of regulation 39 of the IBBI (Pre-packaged Insolvency Resolution Process) Regulations, 2021, and sub regulation (5) of regulation 30 of the IBBI (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, provide that a registered valuer shall prepare the valuation report and maintain such documentation as per the format notified by the Board through circular.

3. In view of the above, the Insolvency and Bankruptcy Board of India (IBBI) hereby specifies the Guidelines for Conducting Valuation Under the Insolvency and Bankruptcy Code, 2016, enclosed as Annexure - I.

3.1 Part I of these Guidelines sets out the general requirements regarding documentation to be maintained by the registered valuer; the minimum content of the valuation report; key parameters to be considered while valuing receivables; and duties of registered valuers towards designated coordinating valuer.

3.2 Part II contains the asset-specific formats for the valuation report; and

3.3 Part III provides the guidelines for coordinating valuer for determination of fair value of the corporate debtor under the Code.

4. Accordingly, every registered valuer appointed under the Code and the regulations made thereunder shall prepare valuation reports and maintain documentation in accordance with these Guidelines.

5. This circular shall come into force on the date of its issue and shall apply to all valuation conducted under the Code thereafter.

6. This circular is being issued in exercise of the powers conferred under the provisions of section 196 of the Code and regulations made thereunder.

Yours faithfully, -Sd- (B. Sankaranarayanan) General Manager

Encl.: As above

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Annexure I

[Image omitted. See the official document.]

GUIDELINES FOR CONDUCTING VALUATION UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016

Valuation reports and documentation are critical aspects, which collectively assist in creating consistency, professionalism, transparency, comparability, and trust in valuation to serve the public interest. Accordingly, valuation must have sufficient documentation and reporting that clearly describes and provides transparency to the intended user regarding the valuation approaches, methods, inputs, models, application of professional judgment, and the resulting values. The objective of these guidelines is to prescribe the minimum contents of the valuation report for conducting valuation under the Insolvency and Bankruptcy Code, 2016 (Code), and to specify the responsibility of a Registered Valuer in preparing the relevant documentation for arriving at a value. Accordingly, Part – I of these guidelines provides the general content covering (a) documentation requirements (b) minimum content of the valuation report (c) key parameters to be considered while valuing receivables and (d) duties of Registered Valuers towards the designated Coordinating Valuer. Part – II specifies the asset specific format of the Valuation Report and Part III provides the guidelines for Coordinating Valuer for determination of fair value of the corporate debtor under the Code. The details are provided below:

PART - I: GENERAL CONTENT

(a) Documentation

i. Documentation shall constitute a comprehensive written record of the valuation, and shall include relevant communications with the client, working papers, and supporting materials that substantiate the conclusions reached.

ii. The Registered Valuer shall ensure that documentation shall be maintained in a manner that clearly describes the valuation process and is sufficient to substantiate the conclusions reached by him. Such documentation should be sufficient to understand the scope of the valuation, the work performed, and the basis of the conclusions drawn.

iii. Documentation shall include, but not be limited to, records of communication with the client; alternative methodologies considered; additional data and inputs evaluated; risks and potential biases identified and addressed; the exercise of professional judgement; and the valuation quality control procedures applied.

iv. In all cases, documentation shall clearly set out the valuation process undertaken and the manner in which valuation risk was identified, assessed, and managed by the Registered Valuer.

(b) Minimum content of the valuation report

i. Purpose and scope of the work; ii. Details of Registered Valuer & Registration Number; iii. Details of any other experts involved in the valuation; iv. Disclosure of valuer interest or conflict, if any; v. Identity of Client/appointing authority and other intended users; vi. Intended use; vii. Details of assets and/or liabilities being valued; viii. Background and other Relevant Information about the Asset Being Valued; ix. Valuation currency(ies) used and measurements; x. Valuation Report Identification Number (VRIN); xi. Sources of Information; xii. Basis/es and premise(s) of value adopted; xiii. Valuation Standards followed; xiv. Valuation Approaches, Methods or Valuation Model(s) applied; xv. Relevant discounts and premiums; xvi. Sources and selection of significant data and inputs used; xvii. Description of inspections and/or investigations undertaken; xviii. Sustainability and Functional Factors impacting valuation; xix. Significant or special assumptions, and/or limiting conditions; xx. Specific reasons for any asset being left out or assigned zero value; xxi. Findings of any other experts involved in the valuation; xxii. Value and Rationale for valuation; and xxiii. Caveats, limitations and disclaimers as per the IBBI (Use of Caveats, Limitations, and Disclaimers in Valuation Reports) Guidelines, 2020 as updated from time to time.

(c) Key Parameters to be considered while valuing receivables

i. Nature of Receivable: Trade receivable, Loans, Advances, tax related receivables including carry forward losses, etc. ii. Credit Risk Profile and Related Party Status: Financial health, solvency status (e.g., defaulter, under litigation, insolvent), availability of external credit ratings (if any) and related party status. iii. Ageing of Receivables: Categorization of receivables by period outstanding (e.g., <3 months, <6 months, 6–12 months, <1 year, etc.). iv. Legal Enforceability and Documentation: Status whether secured or unsecured, disputed or undisputed, availability of enforceable documentation like valid contracts, invoices, acknowledgment of debt, KYC details of the debtors of Corporate Debtor, etc. v. Past Recovery and Servicing Record: Historical recovery experience from similar types of receivables or customers or industry sectors including legal and administrative costs, time of recovery, etc. vi. Macroeconomic and Industry Factors: Sector-specific default trends and economic conditions impacting the recoverability of receivables. vii. Any other parameter as considered relevant during the valuation process.