Understand the IBBI Circular No. IBBI/RV/75/2024 dated 12-08-2024 on Generation of Valuation Report Identification Number for valuation conducted by Register Valuer under Insolvency and Bankruptcy Code, 2016.
Summary: The Insolvency and Bankruptcy Board of India (IBBI) issued Circular No. IBBI/RV/75/2024 on August 12, 2024, mandating the generation of a unique Valuation Report Identification Number (VRIN) for valuations conducted by Registered Valuers under the Insolvency and Bankruptcy Code, 2016 (IBC). This directive aims to ensure the authenticity and traceability of valuation reports. Prior to this circular, Registered Valuers (RV) and Registered Valuer Entities (RVE) would submit valuation reports without a standardized reference number. The IBBI has now developed an online module that allows RVs/RVEs to generate a VRIN for each valuation report, which must be displayed on the front page of the report. This new system, hosted on the IBBI website, also provides a verification facility for stakeholders to authenticate the reports using the VRIN. The circular is effective for all valuation reports dated on or after August 12, 2024, and mandates that Insolvency Professionals (IPs) only accept valuation reports with a VRIN. This initiative enhances transparency and accountability in the valuation process under the IBC.
The Insolvency and Bankruptcy Board of India “IBBI” issued a circular on Generation of Valuation Report Identification Number for valuation conducted by Register Valuer under Insolvency and Bankruptcy Code, 2016 “IBC”. The circular addressed to the following addressee:
1. All Registered Valuers
2. All Registered Insolvency Professionals
3. All Registered Insolvency Professional Agencies
4. All Recognised Insolvency Professional Entities, and
5. All Registered Valuers Organisations
The captioned circular issued in exercise of the powers conferred under the provisions of section 196 of the Code, Regulations made thereunder, and the Valuation Rules.
As we know that the Insolvency and Bankruptcy Board of India (IBBI/ Authority) has been designated as an Authority under the Companies (Registered Valuers and Valuation) Rules, 2017 (The Rules) for registration, monitoring and development of valuers registered under the Rules read with section 247 of the Companies Act, 2013. At present, any valuation under the provisions of Insolvency and Bankruptcy Code (The Code) shall be done only by a Registered Valuer (RV)/ Register Valuers Entity (RVE).
1. Pre-circular scenario:
At present, RV/RVEs submit the valuation reports upon its completion with or without mentioning any reference number. In order to ensure authenticity and to have a unique reference number of the valuation reports, it has been decided to provide a Valuation Report Identification Number (VRIN) for each valuation conducted under the Code.
2. Development of online Module:
IBBI has developed an online module, in consultation with Registered Valuers Organisations, has been developed by IBBI. The module has been hosted on the IBBI website at https://www.ibbi.gov.in. The RV/RVE shall access the module with the login credentials already provided by the IBBI. Before the submission of valuation report, the respective RV/RVEs shall generate a unique VRIN for each valuation report. The RV/RVE shall mention the VRIN on the front page of the valuation report.
3. Verification facility for stakeholders:
A facility is also being provided on the IBBI website to allow stakeholders to verify the authenticity of the report by using VRIN.
4. Applicability:
The circular shall be applicable to all the cases where the date of valuation report is on or after the date of this circular. The IPs shall not accept any valuation reports without VRIN in all such cases.
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