IBBI Pre-Packaged Insolvency Resolution Process (Second Amendment) Regulations, 2026: Revised Valuation Framework Explained

Overview of the Amendment

The Insolvency and Bankruptcy Board of India issued a significant regulatory update on 19 May 2026, notifying the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) (Second Amendment) Regulations, 2026. This amendment introduces targeted changes to the valuation framework that governs the Pre-Packaged Insolvency Resolution Process (PPIRP), specifically by substituting Regulation 38 and making editorial and substantive refinements to Regulation 39 of the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) Regulations, 2021.

The core intent of these amendments is to strengthen the integrity, independence, and procedural consistency of the valuation exercise that takes place during pre-packaged insolvency proceedings. By tightening eligibility criteria for registered valuers and clarifying the methodology for computing fair value and liquidation value, IBBI has taken a step toward making the PPIRP framework more robust and credible.

Important Note: These regulations came into force on the date of their publication in the Official Gazette, i.e., 19 May 2026, and are issued under the authority of section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).

The amendment has been enacted in exercise of powers conferred by section 196 read with section 240 of the Insolvency and Bankruptcy Code, 2016. The notification bears the reference number F. No. IBBI/2026-27/GN/REG143 and has been issued by RAVI MITAL, Chairperson, Insolvency and Bankruptcy Board of India.

The parent regulations — the Insolvency and Bankruptcy Board of India (Pre-Packaged Insolvency Resolution Process) Regulations, 2021 — were originally 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. Prior to this amendment, the regulations were last modified 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 25th February, 2026.

Key Change 1: Substitution of Regulation 38 — Appointment of Registered Valuers

Revised Text of Regulation 38

The most substantive change brought about by this amendment is the complete substitution of Regulation 38, which now reads as follows: