The Insolvency and Bankruptcy Board of India has notified the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Amendment) Regulations, 2026 on February 25, 2026, under Sections 196(1)(t) and 240 of the Insolvency and Bankruptcy Code, 2016. The amendment revises the definition of “fair value” under Regulation 2(1)(g) to mean the estimated realizable value of the corporate debtor or its assets on the insolvency commencement date in an arm’s length transaction, after proper marketing, and computed by considering the total realizable value of all assets, including tangible, intangible assets and underlying synergies. Regulation 38 is amended to require appointment of “two sets” of valuers. Regulation 39 substitutes the valuation mechanism, mandating one registered valuer per asset class in each set, designation of a coordinating valuer, explanation of methodology to the committee, physical verification of assets, and averaging of estimates for fair and liquidation values. A new sub-regulation (1A) requires valuation reports and documentation in Board-notified formats.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 25th February, 2026
Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Amendment) Regulations, 2026
F. No. IBBI/2025-26/GN/REG138.—In exercise of the powers conferred by clause (t) of sub-section (1) of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Insolvency and Bankruptcy Board of India hereby makes the following regulations to further amend the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) Regulations, 2021, namely: –
1. (1) These regulations may be called Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Amendment) Regulations, 2026.
(2) They shall come into force on the date of publication in the Official Gazette.
2. In the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) Regulations, 2021, (hereinafter referred to as „the principal regulations’), in regulation 2, in sub-regulation (1), for clause (g) the following clause shall be substituted, namely:-
“(g) “fair value” means the estimated realizable value of the corporate debtor or the assets of the corporate debtor, as the case may be, if they were to be exchanged on the insolvency commencement date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing, and where the parties had acted knowledgeably, prudently, and without compulsion.
Explanation- The estimated realizable value of the corporate debtor shall be computed after taking into account the total estimated realizable value of all the assets of the corporate debtor including but not limited to tangible and intangible assets, along-with their underlying synergies.”
3. In the principal regulations, in regulation 38, after the words “appoint two” the words “sets of” shall be inserted.
4. In the principal regulations, in regulation 39, for sub-regulation (1) the following shall be substituted namely:-
“(1) Fair value and liquidation value shall be determined in the following manner, namely:-
a. the set of registered valuers appointed under regulation 38 shall comprise of one registered valuer for each asset class of the corporate debtor and within each set, one registered valuer shall be designated as the coordinating valuer for that set by the resolution professional, in consultation with the committee, for computation of the fair value of the corporate debtor;
Explanation- For the purpose of clause (a),“asset class” means the definition provided under the Companies (Registered Valuers and Valuation) Rules, 2017;
b. the resolution professional shall facilitate a meeting wherein the registered valuers, including coordinating valuers, shall explain the methodology being adopted to arrive at the valuation, to the members of the committee, before computation of estimates;
c. each registered valuer shall, after physical verification of the inventory and fixed assets of the corporate debtor, submit to the resolution professional and the coordinating valuer of their respective set, a report on the fair value of the assets of the corporate debtor and the liquidation value, computed in accordance with such valuation standards as notified by the Board through circular;
d. the coordinating valuer of a set shall compute the fair value of the corporate debtor after considering the fair value of the assets as computed by the registered valuers within that set, along with their underlying synergies, and submit the same to the resolution professional;
e. the average of the two estimates of the fair value submitted by the coordinating valuers shall be considered as the fair value of the corporate debtor; and
f. the average of the two estimates of the liquidation value submitted by registered valuers in each asset class shall be considered as the liquidation value of the corporate debtor.”
5. In the principal regulations, in regulation 39, after sub-regulation (1), the following shall be inserted, namely:-
“(1A) For the purposes of this regulation, a registered valuer shall prepare the valuation report and maintain such documentation as per the format notified by the Board through circular.”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./715/2025-26]
Note : The Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) Regulations, 2021 were published vide notification No. IBBI/2021- 22/GN/REG071, dated 9th April, 2021 in the Gazette of India, Extraordinary, Part III, Section 4, No. 151 on dated 9th April, 2021.
