IBBI Amends Personal Guarantors Bankruptcy Regulations 2026 | Revises Valuation Norms

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IBBI Personal Guarantors Bankruptcy Regulations 2026

Notification F. No. IBBI/2025-26/GN/REG139, Dated: 25.02.2026

The Insolvency and Bankruptcy Board of India (IBBI) has notified the IBBI (Bankruptcy Process for Personal Guarantors to Corporate Debtors) (Amendment) Regulations, 2026, introducing changes relating to valuation standards and documentation requirements in bankruptcy proceedings.

1. Replacement of Valuation Standards Reference

The amendment substitutes the earlier reference to “internationally accepted valuation standards” with “such valuation standards as notified by the Board through circular”.

This change enables the IBBI to prescribe and update valuation standards through circulars from time to time, providing flexibility and ensuring alignment with evolving regulatory and professional requirements.

2. Insertion of Sub-Regulation (5) in Regulation 30

A new sub-regulation (5) has been inserted in Regulation 30, mandating that:

  • A registered valuer must prepare the valuation report in the format specified by the Board.
  • The valuer must maintain supporting documentation as per the format notified by IBBI through circulars.

This requirement ensures consistency and standardisation in valuation reporting and record-keeping during bankruptcy proceedings for personal guarantors.

3. Objective of the Amendment

The amendments aim to:

  • Standardise valuation practices and documentation
  • Enhance transparency and reliability of valuation reports
  • Enable dynamic prescription of valuation standards through circulars
  • Strengthen regulatory oversight and procedural consistency

Overall, the revised framework seeks to improve the quality, uniformity, and credibility of valuation processes in bankruptcy proceedings involving personal guarantors to corporate debtors.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied