On 19 May 2026, the Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Second Amendment) Regulations, 2026 to amend the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) Regulations, 2021.
All you need to know about the amended provisions of Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) Regulations, 2021:
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The provisions relating to “Appointment of registered valuers” mentioned under Regulation 38 has been revised:
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The Resolution Professional will have to appoint registered valuers within 3 days of being appointed.
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These valuers will calculate the fair value and liquidation value of the company.
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Normally, only 1 set of valuers is appointed. However, the Committee can decide to appoint 2 sets of valuers after recording the reasons in writing.
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Who cannot be appointed as valuers:
✓ Anyone who is related party of the company.
✓ Anyone who has been the company’s auditor in the last 5 years preceding the pre-packaged insolvency commencement date.
✓ Anyone who is a partner/ director in the same firm as the Resolution Professional.
✓ Any relative of the Resolution Professional or the Resolution Professional’s firm’s partner/ director.
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The provision relating to “Fair value and liquidation value” under Regulation 39 has also been revised:
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The fair value as submitted by the coordinating valuer in accordance with the following provisions will be considered as the fair value of the company:
✓ In each set of valuers, there is a coordinating valuer;
✓ This person combines the values given by all the valuers in that set;
✓ While doing so, they also consider how the assets work together;
✓ Then, they finalize the fair value of the company and submit it to the Resolution Professional.
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In case there are 2 sets of registered valuers, the average of the 2 estimates of the fair value submitted by the coordinating valuer will be considered as the fair value of the company.
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The liquidation value of the company will be calculated by adding up/ aggregating the liquidation values of all asset classes given by the valuers.
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In case there is only 1 set of valuers- add all their estimates for each asset class to get the total liquidation value.
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In case there are 2 sets of valuers-
✓ Firstly, add the average of the 2 estimates for each asset class;
✓ Then add these averages to get the total liquidation value.
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Also Read:
[IBBI (Pre-Packaged Insolvency Resolution Process) (Second Amendment) Regulations, 2026, dt. 19 May 2026]
