Sparrow Advisory

Valuation under IBC

Circular No.: IBBI/RVO/026/2019

The Insolvency and Bankruptcy Code, 2016 (i.e. the Code) is making far-reaching changes in the business scenario of the country by overhauling the existing corporate insolvency and liquidation framework.

A list of the provisions of the Act and the Code under which valuations are required to be conducted by a registered valuer:

RegulationParticulars
Section 59(3)(b)(ii) of the Insolvency and Bankruptcy Code, 2016Voluntary liquidation of corporate persons
Section 46(2) of the Insolvency and Bankruptcy Code, 2016Relevant period for avoidable transactions
Regulation 27 read with regulation 35 of the IBBI(Insolvency Resolution Process for Corporate Persons) Regulations, 20161) Appointment of registered valuers; 2) Fair value and liquidation value
Regulation 35 of the IBBI(Liquidation Process) Regulations, 2016Valuation of assets intended to be sold
Regulation 3(1)(b)(ii) of the IBBI (Voluntary Liquidation Process) Regulations, 2017Initiation of liquidation
Regulation 26 of the IBBI(Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017Appointment of registered valuer
Regulation 34 of the IBBI (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017Fair value and liquidation value
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