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

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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