The Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Second Amendment) Regulations, 2026 on 19 May 2026 to amend the valuation framework under the Pre-Packaged Insolvency Resolution Process Regulations, 2021. The amendment substitutes Regulation 38 and revises Regulation 39 to streamline the appointment and functioning of registered valuers. Under the revised Regulation 38, the resolution professional must appoint a set of registered valuers within three days of appointment unless the committee decides to appoint two sets with recorded reasons. The amendment also disqualifies related parties, recent auditors, partners or directors linked to the insolvency professional entity, and relatives of such persons from acting as valuers. Regulation 39 clarifies the methodology for determining fair value and liquidation value, including averaging mechanisms where two sets of valuers are appointed. The amendments aim to enhance transparency, independence, consistency, and credibility in valuation during the insolvency resolution process.
INSOLVENCY AND BANKRUPTCY BOARD OF INDIA
NOTIFICATION
New Delhi, the 19th May, 2026
Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Second Amendment) Regulations, 2026
F. No. IBBI/2026-27/GN/REG143.— In exercise of the powers conferred by 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) (Second 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 38, the following regulation shall be substituted, namely: —
“38. Appointment of registered valuers.
The resolution professional shall within three days of his appointment, appoint a set of registered valuers to determine the fair value and the liquidation value of the corporate debtor, unless the committee decides, for reasons to be recorded in writing, to appoint two sets of registered valuers:
Provided that the following persons shall not be appointed as registered valuers, namely: —
a. a related party of the corporate debtor;
b. an auditor of the corporate debtor at any time during the five years preceding the pre-packaged insolvency commencement date;
c. a partner or director of the insolvency professional entity of which the resolution professional is a partner or director; or
d. a relative of the resolution professional or of a partner or director of the insolvency professional entity of which the resolution professional is a partner or director.”
3. In the principal regulations, in regulation 39, in sub-regulation (1),
i. in clause (a) for the words “within each set” the words “within that set” shall be substituted.
ii. in clause (a) the words “for that set” shall be omitted.
iii. in clause (b) for the words “coordinating valuers” the words “the coordinating valuer” shall be substituted.
iv. in clause (c) for the words “their respective set”, the words “the set” shall be substituted.
v. in clause (d) for the words “a set”, the words “the set” shall be substituted and the words “within that set” shall be omitted.
vi. for clause (e), the following clause shall be substituted, namely:-
“(e) the fair value as submitted by the coordinating valuer in accordance with clause (d) shall be considered as the fair value of the corporate debtor.
Provided that where two sets of registered valuers are appointed under regulation 38, 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.”
(vii) for clause (f), the following clause shall be substituted, namely:-
“(f) the aggregate of the estimates of the liquidation value submitted by registered valuer in each asset class shall be considered as the liquidation value of the corporate debtor.
Provided that where two sets of registered valuers are appointed under regulation 38, the aggregate of 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.”
RAVI MITAL, Chairperson
[ADVT.-III/4/Exty./98/2026-27]
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 and were last amended by the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Amendment) Regulations, 2026 published vide notification No. IBBI/2025-26/GN/REG138, dated the 25th February, 2026 in the Gazette of India, Extraordinary, Part III, Section 4, No.138 on 25th February, 2026
