Appointment of Registered Valuer under the Insolvency and Bankruptcy Code · IBBI/RV/022/2019
IBBI circular IBBI/RV/022/2019 · 13 Aug 2019
Official title
Valuation under the Insolvency and Bankruptcy Code, 2016: Appointment of Registered Valuer
Official record
Open source pageSummary
Check the official recordWhat changed
The Insolvency and Bankruptcy Board of India clarifies that insolvency professionals must appoint only registered valuers for valuations under the Insolvency and Bankruptcy Code, 2016. The appointment of an unregistered person on or after 1st February 2019 violates the circular. Payments made to unregistered persons for valuations do not form part of insolvency resolution process costs or liquidation costs.
What you must do
- Insolvency professionals must appoint only a registered valuer to conduct valuations under the Code.
Key dates
- Effective date for mandatory appointment of registered valuers
- 01 Feb 2019
- Circular publication date
- 13 Aug 2019
Document text
Insolvency and Bankruptcy Board of India 7th Floor, Mayur Bhawan, Connaught Place, New Delhi-110001
CIRCULAR
No. IBBI/RV/022/2019
13th August, 2019
To All Registered Insolvency Professionals All Recognised Insolvency Professional Entities All Registered Insolvency Professional Agencies All Registered Valuers, and All Recognised Registered Valuer Organisations. (By mail to registered email addresses and on website of the IBBI)
Dear Madam /Sir,
Subject: Valuation under the Insolvency and Bankruptcy Code, 2016: Appointment of Registered Valuer.
Para 6 of the Circular No. IBBI/RV/019/2018 dated 17th October, 2018 stipulates as under: "6. ....... every valuation required under the Code or any of the regulations made thereunder is required to be conducted by a 'registered valuer', that is, a valuer registered with the IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017. It is hereby directed that with effect from 1st February, 2019, no insolvency professional shall appoint a person other than a registered valuer to conduct any valuation under the Code or any of the regulations made thereunder."
- It is reiterated that-
- (i) appointment of any person, other than a 'registered valuer', that is, a valuer registered with the IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017, on or after 1st February, 2019, to conduct any valuation required under the Insolvency and Bankruptcy Code, 2016, or any regulations made thereunder, including the Insolvency and Bankruptcy Board of India (Insolvency Resolution for Corporate Persons) Regulations, 2016, and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, is illegal and amounts to violation of the Circular aforesaid; and
- (ii) payment, whether as fee or otherwise, to any person, other than a 'registered valuer' for any valuation referred to in paragraph (i), shall not form part of the insolvency resolution process costs or liquidation cost.
- This is issued in exercise of the powers under clauses (aa), (g) and (p) of sub-section (1) of section 196 of the Insolvency and Bankruptcy Code, 2016.
Yours faithfully,
-Sd- (Amit Sahu) Deputy General Manager Email: sahu.amit@ibbi.gov.in
Source details
- Source
- Insolvency and Bankruptcy Board of India
- Type
- circular
- Published by source
- 13 Aug 2019
- Document number
- IBBI/RV/022/2019
- Coverage area
- insolvency