IBBI Update - Valuation Standards for the purpose of valuation conducted under the Insolvency and Bankruptcy Code, 2016.

The Insolvency and Bankruptcy Board of India (IBBI) has issued a circular notifying the adoption of International Valuation Standards (IVS) for all valuations conducted under the Insolvency and Bankruptcy Code, 2016 (IBC). This step aligns with the Code’s objective of maximizing the value of assets of the corporate debtor through a transparent, objective, and credible valuation framework, thereby strengthening stakeholder confidence and decision-making.

As per the amended regulations under various processes including Corporate Insolvency Resolution Process (CIRP), Liquidation, Voluntary Liquidation, Pre-packaged Insolvency Resolution Process, and Bankruptcy of Personal Guarantors, valuations are now required to be conducted in accordance with standards notified by the Board. In this regard, the IBBI has formally adopted the International Valuation Standards issued by the International Valuation Standards Council (IVSC), as updated from time to time.

This circular shall come into force from the date of its issue and shall apply to all valuation conducted under the Code and regulations made thereunder.

Link - View Circular