IBBI Valuation Guidelines 2026: Resolution and Liquidation Workpaper Checklist

By Ravi Sisodia · Reviewed by CA Divyanshu Sengar · Updated 5 October 2026

IBBI's 15 June 2026 valuation guidelines turn valuation into an evidence-controlled insolvency workstream: appointment independence, information supplied, assumptions, methodology, review and reconciliation should all be visible in the resolution or liquidation file.

Finin2min 2-Minute Summary

• IBBI published Guidelines for Conducting Valuation Under the Insolvency and Bankruptcy Code on 15 June 2026.
• RPs/liquidators should treat valuation instructions, asset data and access provided to registered valuers as controlled evidence.
• Valuer independence, appointment eligibility and conflict checks belong in the file before valuation starts.
• Material differences between valuation reports require analytical follow-up; simply averaging numbers can hide inconsistent assumptions.
• CoC/RP decision material should distinguish value conclusion from management/valuer assumptions and information limitations.

The valuation file starts before the valuer's report

Document scope, valuation date, asset perimeter, standard/basis, information package and site/access arrangements. Keep a transmittal log showing what financial, technical and legal information each valuer received and when.

If one valuer receives a later plant report or title document, either provide equivalent information to the other or document why the reports are not directly comparable.

Independence is an appointment control

Record eligibility, registration category, engagement conflicts, prior relationships and remuneration basis. Do not rely only on a standard declaration if the valuer or network firm had prior work for the corporate debtor, lender or bidder.

Where a specialist is used for a subset of assets, define responsibility for incorporating the specialist's work into the final conclusion.

Reconcile assumptions before reconciling numbers

A wide gap can come from different forecasts, discount rates, capacity utilisation, title assumptions, liquidation costs or asset scope. Build a difference bridge that identifies these drivers before the RP/CoC uses the reports.

Any request for clarification should be recorded without pressuring a valuer toward a target outcome. Governance is strongest when the file shows independent judgement and transparent challenge.

Valuation discrepancy case: same plant, materially different enterprise value

Suppose two registered valuers inspect the same manufacturing unit but produce values 30% apart. Before concluding that one report is wrong, compare utilisation assumptions, maintenance capex, working-capital needs, title/lease facts, liquidation costs, discount rates and whether non-operating assets were included. A structured difference bridge often explains most of the gap.

If one report relies on management projections prepared before a demand shock and the other uses a revised forecast, the information set is not equivalent. The RP should decide whether both valuers need the updated evidence rather than asking one valuer to move toward the other's number.

The final workpaper should show what was challenged, what clarification was obtained and what remained a legitimate professional judgement difference. That distinction is more defensible than a mechanical average with no analytical trail.

• Bridge scope, data and assumptions before comparing headline values.
• Give both valuers equivalent material information where appropriate.
• Document clarification questions without steering toward a target value.
• Explain remaining valuation dispersion to the CoC.

Valuation workpaper checklist

• Valuer eligibility and conflict assessment.
• Engagement letter and valuation date.
• Information/access transmittal log.
• Methodology and major assumptions.
• Asset/legal limitation register.
• Cross-valuer difference bridge.
• Clarification record and final report custody.

Questions readers commonly ask

What is the key 2026 source?

IBBI's circular dated 15 June 2026 on Guidelines for Conducting Valuation Under the IBC.

Should reports simply be averaged?

Not without understanding major differences in scope, facts and assumptions.

Who should control information supplied to valuers?

The insolvency professional/process team should maintain a traceable, fair information package.

Can CoC influence a desired value?

Valuers must retain independent professional judgement; challenge should focus on facts and methodology, not a target number.

Official / primary sources

• IBBI - Circulars - 15 June 2026 valuation guidelines
• IBBI - Updated Regulations - Current valuation/process regulations

Disclaimer

Important: General educational and professional-reference material. Verify the current operative instrument, effective date and exact facts before acting. Consultation papers are not final law unless SEBI subsequently adopts them. Educational and professional reference only; confirm the current law, rates and the facts of your case before relying on this page.