IBBI Amends Pre-Packaged Insolvency Regulations 2026 | Revises Fair Value & Valuation Norms

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  • Last Updated on 1 March, 2026

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IBBI Pre-Packaged Insolvency Regulations 2026

Notification F. No. IBBI/2025-26/GN/REG138, Dated: 25.02.2026

The Insolvency and Bankruptcy Board of India (IBBI) has notified the IBBI (Pre-Packaged Insolvency Resolution Process) (Amendment) Regulations, 2026, introducing changes relating to valuation standards and procedural clarity in the pre-packaged insolvency resolution framework.

1. Substitution of Definition of ‘Fair Value’

The amendment substitutes the existing definition of ‘fair value’, bringing greater clarity and consistency in valuation practices under the pre-packaged insolvency resolution process (PPIRP).

2. Amendment to Regulation 38

The amendment inserts the words “sets of” in Regulation 38. This modification is intended to provide greater procedural clarity in the context of submission and consideration of valuation-related documents under the PPIRP framework.

3. Revised Determination of Fair Value and Liquidation Value

Regulation 39(1) has been amended to revise the manner of determination of fair value and liquidation value.

The revised framework aims to:

  • Standardise valuation methodology
  • Enhance transparency in valuation processes
  • Improve reliability of valuation inputs for stakeholders
  • Strengthen confidence in resolution outcomes

4. Mandatory Format for Valuation Reports

A new sub-regulation (1A) has been inserted, requiring that:

  • A registered valuer must prepare the valuation report in the format notified by the Board.
  • The valuer must maintain supporting documentation in accordance with the format prescribed by IBBI through circulars.

This ensures uniform documentation and reporting standards across pre-packaged insolvency cases.

5. Objective of the Amendments

The amendments seek to enhance procedural clarity, strengthen valuation standards, and improve regulatory oversight in the pre-packaged insolvency resolution process.

Overall, the revised regulations aim to ensure greater consistency, transparency, and reliability in valuation practices under the PPIRP framework.

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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