IBBI Cuts MSME Liquidation Valuation to One Registered Valuer Per Asset Class

New Delhi, June 2026: The Insolvency and Bankruptcy Board of India notified the Liquidation Process (Third Amendment) Regulations, 2026 on May 19, which came into force on May 20. The change is specific and targeted: for MSME corporate debtors, liquidators now appoint one registered valuer per asset class instead of two. A second valuer can still be brought in if the consultation committee records its reasons in writing, but the default has shifted.

The change is a direct response to a long-standing complaint from resolution professionals working smaller MSME cases: the cost of two independent valuations was often disproportionate to the asset value involved. A 15-crore MSME manufacturer with Rs 2 crore in plant and machinery does not need the same procedural weight as a large corporate insolvency. IBBI's amendment acknowledges this reality. It also lands alongside the April 2026 IVS mandate, which raised documentation standards for every CIRP valuation report -- meaning the single valuer now carries more responsibility, not less.

"We've had resolution professionals reach out specifically about MSME liquidations where the valuation cost was eating into what creditors could realistically recover," said Prateek Mittal, Director at FinVal Research & Consultancy. "This amendment is a pragmatic fix. But it also means the single appointed valuer has to get it right -- the report now has to meet IVS standards, and there is no second opinion to fall back on. The quality bar hasn't dropped; the headcount has."

FinVal Research & Consultancy is an IBBI Registered Valuer firm that works with liquidators and resolution professionals on IBC valuations, including plant and machinery, land and building, and securities or financial assets. The firm's valuation reports are structured to meet the April 2026 IVS documentation mandate, including methodology disclosure, comparable evidence, and assumption-sensitivity notes that hold up under NCLT scrutiny. For MSMEs entering liquidation, FinVal offers fixed-fee valuation engagements designed for the scale of the case.

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ABOUT FINVAL RESEARCH & CONSULTANCY
FinVal Research & Consultancy is owned by an IBBI Registered Valuer based in New Delhi, providing business valuation, ESOP advisory, transaction advisory, and virtual CFO solutions to Indian startups and mid-size companies. The firm is led by IBBI Registered Valuers with expertise across IndAS, SEBI, FEMA, and Companies Act compliance requirements. Website: finvalresearch.in

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