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KoreanIBC: Mandatory Requirement of Valuation Number
On 12 August 2024, the Insolvency and Bankruptcy Board of India (IBBI) issued a circular (Circular) (available here) mandating Registered Valuers (RV) and Registered Valuer Entities (RVE) to generate a VRIN for each valuation conducted under the Insolvency and Bankruptcy Code, 2016 (Code).
The Circular will be applicable prospectively i.e., to those cases where the date of valuation is either on or after the date of the issuance of the Circular. The objective behind the Circular is to ensure authenticity of valuation conducted under the Code.
Before the issuance of the Circular, it was not mandatory for RV/RVEs to generate /mention a unique reference number for the valuation reports issued by them. With the present Circular, generating and mentioning a VRIN has been mandated along with the following:
- An online module developed by IBBI in consultation with the Registered Valuers Organization which will be hosted on the IBBI website.
- Through the said module, RV/RVEs will generate a VRIN for each valuation report using the login credentials provided by IBBI.
- The VRIN generated must be mentioned on the front page of the valuation report issued by RV/RVEs.
- The Insolvency Professionals will only accept reports with VRIN.
- Additionally, a facility will be provided on the IBBI website to allow stakeholders to verify the authenticity of the valuation report using VRIN.
The information contained in this document is not legal advice or legal opinion. The contents recorded in the said document are for informational purposes only and should not be used for commercial purposes. Acuity Law LLP disclaims all liability to any person for any loss or damage caused by errors or omissions, whether arising from negligence, accident, or any other cause.
