The IBBI has revised pre-packaged insolvency resolution regulations to exclude related parties from acting as valuers, aiming for impartial valuation.
IBBI Amends Regulations for Pre-Packaged Insolvency
The Insolvency and Bankruptcy Board of India (IBBI) has amended regulations concerning the Pre-Packaged Insolvency Resolution Process to prohibit related parties, recent auditors, and connected persons from serving as registered valuers. This amendment seeks to ensure an unbiased and conflict-free valuation during the insolvency process.
The necessity of transparent valuation standards is paramount, as related party valuations can lead to conflicts of interest and undermine the integrity of the resolution process. The IBBI’s move reflects a commitment to fostering fairness within insolvency resolutions.
Legal practitioners must note this amendment and advise clients engaged in insolvency proceedings to comply with these new provisions, ensuring that the valuations conducted adhere to ethical standards.
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