IBBI Revises Valuation Framework under Pre-Packaged Insolvency Resolution Process Regulations

The Insolvency and Bankruptcy Board of India (“IBBI”) has notified significant amendments to the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) Regulations, 2021, primarily revising the framework governing appointment of registered valuers and determination of fair value and liquidation value in pre-packaged insolvency proceedings.

The amendments introduce a more structured valuation architecture by:

• Providing flexibility for appointment of one or two sets of registered valuers

• Strengthening independence and conflict-of-interest restrictions applicable to valuers

• Revising methodologies for computation of fair value and liquidation value where multiple valuation sets are appointed.

The revised framework reflects IBBI’s continuing focus on transparency, valuation integrity, and procedural robustness within the insolvency resolution ecosystem.