IBBI proposes uniform, detailed formats for valuation of assets under IBC

IBBI proposes uniform valuation norms, broader fair value definition and single-valuer option for smaller debtors to cut disputes, streamline IBC processes and maximise creditor recoveries

The insolvency regulator has proposed a uniform reporting format for valuation reports across the IBC process and a wider definition of fair value to include tangible and intangible assets, underlying business synergies, cost-saving single valuer rules for small and MSME debtors in its latest discussion paper.

 

The valuation report is one of the key documents for the Committee of Creditors to evaluate the bids of resolution applicants. The value provided by the registered valuer is one of the major factors that facilitate the CoC in taking decisions. 

The Insolvency and Bankruptcy Board of India’s (IBBI’s) discussion paper on strengthening the valuation process has proposed standardised valuation report formats and standards across resolution, liquidation, pre-packaged insolvency and other processes under the Insolvency and Bankruptcy Code. 

 

“The aim is to curb inconsistencies, cut litigation and maximise creditor recoveries,” Rahul Sundaram, partner, IndiaLaw LLP, said. 

IBBI has stated that any decisions based upon either under-valuation or over-valuation of a corporate debtor, in addition to causing unfair gain or loss to parties, also have the potential to distort the market and misallocate resources, which may impinge upon the growth process of the economy. 

The IBBI has recommended a unified enterprise-level valuation with the option to appoint a single valuer for smaller debtors, and the introduction of a coordinator valuer to integrate asset-class valuations. 

Experts said that the proposed reforms would strengthen creditor confidence, improve resolution outcomes and ensure value maximisation. “The IBBI is trying to address long-standing concerns of inconsistency, delays and fragmented assessments. It is aligning valuation practices with global benchmarks while reducing process inefficiencies and disputes,” said Nivedita Bhardwaj, partner, King Stubb & Kasiva, Advocates and Attorneys. 

Releasing the guidelines for conducting valuation under the Insolvency and Bankruptcy Code, IBBI said: “The objective is to ensure that valuation reports are comprehensive, supported by adequate documentation, and prepared through a structured and well-reasoned assessment of the assets of the corporate debtor.” 

The insolvency regulator has sought public comments on its proposals by December 10, 2025.