Posted on May 15th, 2026
The IBC (Insolvency and Bankruptcy Code) 2016 changed the insolvency resolution framework of India by coming up with a structured and time-bound process for resolving financial distress. One of the most important aspects of bankruptcy and insolvency proceedings is valuing assets accurately.
This is where registered valuers can play such an important role.
These are professionals recognized by the IBBI (Insolvency and Bankruptcy Board of India) — they are authorized to determine the liquidation and fair value of assets at the time of insolvency proceedings.
Registered Valuers — Understanding Them as Per Indian Laws
The Companies (Registered Valuers and Valuation) Rules, 2017 govern registered valuers. These rules came into being under Section 247 of the Companies Act 2013, as well as the regulatory powers related to valuation that the IBBI has received.
Only IBBI-registered valuers are allowed to conduct valuations as per the Insolvency and Bankruptcy Code. The IBBI made it mandatory in 2018 that only registered valuers will carry out all valuation work under the Code.
These valuers are normally categorized into three asset classes — land and building, securities or financial assets, and plant and machinery.
Valuation — Why Is It Critical In Insolvency Proceedings?
Valuation forms the very basis of resolving insolvencies. Creditors, tribunals, and investors depend on valuation reports for assessing the financial position of a distressed company.
The main aims of insolvency valuation are:
• Determining the fair value of assets
• Supporting creditor decision-making
• Estimating liquidation value
• Ensuring transparency in the process
• Assisting in evaluating resolution plans
The IBBI has always emphasized the importance of credible and transparent valuation to maximize asset values and make the most informed decisions under the IBC.
Appointing Registered Valuers during CIRP (Corporate Insolvency Resolution Process)
As per the CIRP, the RP (Resolution Professional) is supposed to appoint registered valuers within a certain timeline. As per Regulation 27 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, the RP has to appoint two registered valuers.
It is their job to determine the liquidation value and the fair value of the corporate debtor.
Certain individuals are disqualified from appointment to avoid conflicts of interest in such work and to ensure it can be done independently.
Determining Liquidation Value and Fair Value
One of the basic responsibilities of a registered valuer is to determine fair value and liquidation value.
• Fair value means the estimated realizable value of assets if the company is sold as a going concern between willing sellers and buyers in normal market conditions.
• It helps resolution applicants and creditors understand the inherent economic worth of the business.
• Liquidation value is the estimated value that can be realized if the company’s assets are sold separately during liquidation.
Aiding the Process of Resolution
Registered valuers help the resolution process in various ways apart from the basic valuation reports.
Their duties frequently cover:
• Asset verification
• Selecting valuation methodology
• Financial analysis
• Risk assessment
• Market benchmarking
• Stakeholder certifications
Valuers prepare reports to help potential resolution applicants assess opportunities for acquisition and create the most detailed resolution plans.
A professionally prepared valuation report makes investors more confident and makes it easier for stakeholders to negotiate smoothly.
Professional Ethics and Independence — How Important Are They in This Context?
The insolvency ecosystem is heavily dependent on neutrality and trust. Therefore, registered valuers are supposed to maintain high professional and ethical standards throughout the process.
So, they need to:
• Avoid conflicts of interests
• Use accepted methods of valuation
• Ensure confidentiality
• Adhere to regulatory standards
• Maintain objectivity
The IBBI framework has been designed to make sure that valuers stay independent from both creditors and debtors, and this is highly critical.
Insolvency Cases — Challenges in Valuation
It is very rare for a valuation in insolvency proceedings to be straightforward, as registered valuers often face various practical and technical challenges, such as:
• Lack of reliable financial information
• Industry-specific risks
• Time constraints
• Disputes and litigation
• Market volatility
Distressed companies may have incomplete, manipulated, and/or outdated financial records, and this can make accurate valuation rather difficult.
Certain industries are more exposed to volatile market conditions, rapidly depreciating assets, and/or regulatory uncertainty.
The IBC framework also, unfortunately, functions under strict timelines.
International Valuation Standards — Their Growing Importance
The valuation ecosystem in India is aligning more with international standards. Of late, regulatory developments such as IBBI have enhanced the adoption of internationally recognized valuation frameworks in insolvency proceedings.
This move is supposed to improve global investor confidence, enhance transparency, make valuation practices more consistent, and reduce disputes in insolvency cases.
With the rise of international investments and cross-border insolvency, such standardized valuation practices are becoming more important than ever.
Registered Valuers — Role in Liquidation Proceedings
It is during liquidation that the role of registered valuers becomes more critical.
• During liquidation, they help with asset sale valuation, auction support, reserve price determination, and recovery estimation.
• Their assessments assist liquidators in realizing the maximum value by selling distressed assets.
• Inaccurate valuation during liquidation may lead to problems like asset underselling, legal disputes, creditor dissatisfaction, and reduced recovery rates.
• This is why valuation quality has a direct impact on stakeholder recoveries during liquidation proceedings.
Registered Valuers — Career Opportunities
The demand for registered valuers has increased significantly ever since the IBC framework was implemented. More professionals, who are experts in finance, real estate, engineering, and securities valuation, are now getting into this field.
Registered valuers nowadays work in a wide range of areas, such as:
• Insolvency resolution
• Financial reporting
• Corporate restructuring
• Taxation
• Acquisitions and mergers
• Litigation support
Many now consider the valuation profession one of the fastest-growing specialized domains in India’s legal and financial ecosystem.
Registered valuers, thus, play a central role in making sure that bankruptcy and insolvency proceedings are fair, credible, and transparent. Their valuation reports affect creditor recoveries, liquidation outcomes, investor decisions, and the overall success of the insolvency resolution process.
The insolvency framework in India continues to evolve, and so the role of registered valuers is becoming more sophisticated and strategically important. Their work now is not restricted to estimating asset values. They also support financial stability, efficient resolution, and investor confidence in distressed businesses.
