IBBI Second Amendment 2026: MSME Insolvency Valuation Simplified to Single Valuer
This change is expected to reduce compliance costs and expedite resolution timelines for smaller businesses, which often face resource constraints during insolvency.
The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency Resolution Process for Corporate Persons (Second Amendment) Regulations, 2026, easing valuation requirements for micro, small, and medium enterprises (MSMEs) undergoing insolvency proceedings. The Insolvency and Bankruptcy Board of India (IBBI) has used its legal powers under Sections 196 and 240 of...
The Insolvency and Bankruptcy Board of India (IBBI) has notified the Insolvency Resolution Process for Corporate Persons (Second Amendment) Regulations, 2026, easing valuation requirements for micro, small, and medium enterprises (MSMEs) undergoing insolvency proceedings.
The Insolvency and Bankruptcy Board of India (IBBI) has used its legal powers under Sections 196 and 240 of the Insolvency and Bankruptcy Code, 2016, to make changes to the rules. The new rules are called the Second Amendment Regulations, 2026. They apply to the Insolvency Resolution Process for Corporate Persons.
Under the amended Regulation 27, resolution professionals (RPs) handling MSME insolvency cases will now be required to appoint only one set of registered valuers to assess the assets of the corporate debtor. Previously, two sets of valuers were mandatory in all cases.
So in the amendment IBBI clearly stating that “Provided that, in respect of a corporate debtor classified as a micro, small or medium enterprise under sub-section (1) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the resolution professional shall appoint one set of registered valuers, unless the committee decides, for reasons to be recorded in writing, to appoint two sets of registered valuers.”
The amendment provides flexibility to the Committee of Creditors (CoC), which may still direct the appointment of two sets of valuers, but only if reasons are formally recorded in writing.
The notification, signed by IBBI Chairperson Ravi Mittal, comes into effect immediately upon publication in the Gazette of India.
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