Valuation format plan may cut IBC disputes: IBBI

The Insolvency and Bankruptcy Board of India (IBBI) has proposed a new format for professionals valuing distressed assets to make reports uniform, credible, and reduce lawsuits.

- Gireesh Chandra Prasad

The new format increases the need for disclosures on valuation risks.

(MINT)

The new format prescribed on Wednesday increases the need for disclosures on valuation risks, any conflict of interest involved and how professional judgement is used in determining the value of assets. The idea is to enhance the confidence of stakeholders in the due diligence process and to make negotiations realistic for better outcomes.