Insolvency Board Enforce Unique Identification for Valuation Report

The Insolvency and Bankruptcy Board of India (IBBI) has announced a new measure to upgrade the authenticity and verification of valuation reports under insolvency law. According to a circular released recently, IBBI will now issue a unique Valuation Report Identification Number (VRIN) for each valuation report prepared under the Insolvency and Bankruptcy Code (IBC). This new system targets to address issues related to the verification of reports, which have previously been submitted with or without reference numbers, leading to potential discrepancies.

Implementation Details

Effective from August 12, the new requirement mandates that all valuation reports include a VRIN. This unique identifier will be generated through an online module developed by IBBI in consultation with Registered Valuers Organisations which is accessible via the IBBI’s official website, allowing registered valuers and valuer entities to generate and affix the VRIN on the front page of their valuation reports.

Verification & Compliance

To further strengthen transparency, IBBI has introduced a verification facility on its website which allows stakeholders to confirm the authenticity of a valuation report using the VRIN. Additionally, Insolvency Professionals (IPs) are instructed not to accept any valuation reports that lack a VRIN, ensuring adherence to the updated guidelines.

Benefits of VRIN Implementation

The introduction of the VRIN system offers several benefits. By standardizing the identification process, it mitigates the risk of fraud and reduces errors in valuation report submissions. The unique identification number helps with tracking and auditing reports. Furthermore, it aids in resolving disputes more efficiently by providing a verifiable reference for each report.

About IBBI

Established on October 1, 2016, under the Insolvency and Bankruptcy Code (IBC), the IBBI operates as a statutory body under the corporate affairs ministry. It is responsible for the registration, monitoring, and development of valuers under the Companies Act, 2013.

Conclusion: In conclusion, the introduction of the VRIN system is a step towards improving the credibility and traceability of valuation reports within the insolvency framework. By implementing these changes, IBBI will streamline the verification process along with upholding the integrity of valuations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.