⚫ CEV INFORMATION UPDATE ANNOUNCEMENT

IBBI INVITES PUBLIC COMMENTS ON DISCUSSION PAPER TO STRENGTHEN THE VALUATION PROCESS UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016

Last Date for Submission: 7th December 2025

The Council of Engineers and Valuers (CEV) wishes to bring to the attention of all registered valuers, valuation professionals, academicians, and industry stakeholders a significant regulatory development concerning the valuation framework under the Insolvency and Bankruptcy Code (IBC), 2016.

The Insolvency and Bankruptcy Board of India (IBBI) has released an important Discussion Paper titled “Strengthening the Valuation Process under the Insolvency and Bankruptcy Code, 2016” and has invited public comments from stakeholders across the valuation ecosystem.

This initiative is part of IBBI’s ongoing efforts to enhance transparency, credibility, and consistency in valuations conducted during Corporate Insolvency Resolution Processes (CIRP), Liquidation, and other statutory exercises under the Code.

🔍 Purpose of the Discussion Paper

The discussion paper seeks to address several emerging challenges and practical issues faced in the valuation regime, including:

Enhancing professional standards and accountability of valuers
Introducing stronger safeguards to improve valuation reliability
Exploring reforms to streamline valuation procedures
Ensuring uniformity in valuation methodologies
Addressing concerns raised by stakeholders, tribunals, and regulatory audits
Strengthening governance and oversight mechanisms
Improving the information flow and due diligence framework available to valuers

Given the crucial role valuers play in insolvency proceedings—where fair, defensible valuation can determine resolution outcomes, creditor recoveries, and investor confidence—the proposed reforms are expected to have far-reaching implications.

📝 Invitation for Comments

IBBI has formally invited comments from registered valuers and valuation organisations, recognizing that field practitioners are best positioned to provide insights, identify pain points, and recommend pragmatic solutions.

Stakeholders are encouraged to submit views on:

Proposed amendments in valuation standards
Challenges in data access and information quality
Issues in coordination between valuers, insolvency professionals, and corporate debtors
Suggestions for strengthening certification, oversight, and disciplinary frameworks
Any emerging sector-specific valuation concerns

CEV encourages its entire valuer community to participate actively and contribute to shaping future regulations.

📅 Important Deadline

Last Date for Submission of Comments:

➡ 7th December 2025

All responses must be submitted on or before this date through the official IBBI platform.

🌐 How to Submit Comments

Comments may be submitted through the official link available under the “Public Comments” section on the IBBI website.

Additionally, the discussion paper can be accessed under:

‘What’s New’
‘Public Comments’

Stakeholders are advised to review the document thoroughly before offering suggestions.

📈 CEV’s Advisory to Valuers

IBBI Seeks Valuers’ Feedback on Proposed Amendments to Strengthen Valuation Process under the Insolvency and Bankruptcy Code

November 14, 2025 | New Delhi: The Insolvency and Bankruptcy Board of India (IBBI) has released a comprehensive Discussion Paper on November 14, 2025, proposing significant amendments aimed at strengthening the valuation process under the Insolvency and Bankruptcy Code, 2016 (IBC). The discussion paper addresses key concerns related to inconsistencies, lack of uniformity, and procedural challenges in the conduct of valuations within the insolvency framework.

The proposed reforms are geared towards enhancing the quality, credibility, and efficiency of valuations by standardising formats, harmonising valuation standards, and adopting a more holistic approach to the determination of value. These changes, once implemented, are expected to enable better decision-making by stakeholders, ultimately improving the effectiveness of the insolvency ecosystem and fostering a transparent, reliable process for valuers and creditors alike.

Importance for Valuers: Input Required

The IBBI has opened the floor for public consultation, inviting comments and suggestions on the proposed amendments before the final regulations are issued. Valuers, especially those involved in insolvency, asset valuation, financial reporting, and transaction advisory services, are strongly encouraged to provide their insights. The Council of Engineers and Valuers (CEV), a leading association of prominent valuers in the country, has emphasised the importance of this consultative process.

CEV urges its members to review the discussion paper carefully and submit their feedback, particularly focusing on practical challenges faced by valuers in day-to-day applications of these rules. The association stressed that timely and thoughtful contributions from valuers would not only shape a more effective regulatory framework but also help prevent future disputes and disciplinary actions that could arise from ambiguities in the proposed regulations.

Key Highlights of Proposed Amendments:

Uniform Valuation Standards:
One of the major proposals is to replace the term “internationally accepted valuation standards” with “valuation standards as specified by the Board.” This change, detailed in Para 18 of the paper, seeks to ensure a more consistent and locally applicable framework for valuations in insolvency proceedings.
Redefining Fair Value:
The definition of Fair Value is also being revisited. A new definition will clarify the terms synergistic value and its distinction from market value. This revision aims to address the practical issues arising from these concepts, especially when they overlap in insolvency contexts. Stakeholders are invited to provide feedback on this definition and its impact on the valuation process (Para 26).
Single Valuer for Small Debtors:
In a move to streamline valuations for small corporate debtors, the IBBI proposes appointing a single registered valuer (RV) for companies meeting a specific financial threshold. For companies with annual turnover under Rs. 500 crore, or those classified as micro, small, or medium enterprises under the MSME Development Act, 2006, only one RV would be appointed for providing both the fair value and liquidation value. However, if the Committee of Creditors (CoC) deems necessary, they may still opt for two valuers, provided reasons are recorded (Para 29).

CEV’s Call to Action:

CEV has strongly encouraged all valuers to actively participate in this consultation. The association is consolidating its own recommendations and will include suggestions from its members in its formal submission to the IBBI. Valuers are urged to focus on highlighting the practical challenges, suggesting implementable solutions, and ensuring that the collective voice of the profession is adequately represented in policy decisions.

Final Thoughts:

The IBBI’s initiative to amend and streamline the valuation process under the IBC is a crucial step toward ensuring a more efficient and transparent insolvency resolution framework in India. CEV acknowledges the IBBI’s ongoing efforts to enhance the valuation ecosystem and encourages valuers to contribute to this important process. By doing so, they will help create a valuation framework that is robust, transparent, and aligned with professional standards, which is key to the success of the Insolvency and Bankruptcy Code.

📞 Source Communication

RV Division
Insolvency and Bankruptcy Board of India
New Delhi
Contact: 011-23462949 / 961 / 974

About CEV:
The Council of Engineers and Valuers (CEV) is an apex national body representing professional valuers across the country. With a commitment to improving the standards and practices of valuation services, CEV works to ensure the profession’s growth, credibility, and integration within the wider economic framework.

CLICK THE BUTTON BELOW TO GET THE FULL DISCUSSION PAPER