IBBI's November 2025 Discussion Paper: What Standardized Report Formats Mean for Valuers
In November 2025, the Insolvency and Bankruptcy Board of India (IBBI) released a discussion paper that has the potential to fundamentally alter how registered valuers produce and present their work product. The paper proposes, for the first time in Indian regulatory history, a set of standardized report formats for valuations conducted under the Insolvency and Bankruptcy Code, 2016.
Background: Why Standardization Now?
The IBBI has overseen a growing ecosystem of registered valuers since the enactment of the Companies (Registered Valuers and Valuation) Rules, 2017. As of early 2026, there are over 6,000 registered valuers across three asset classes: Securities or Financial Assets (SFA), Land and Building, and Plant and Machinery. The volume of valuation reports produced annually under IBC proceedings alone exceeds 15,000, and the quality variance across these reports has been a persistent concern for the Board.
The discussion paper identifies several recurring issues: inconsistent application of valuation methodologies, inadequate disclosure of assumptions, lack of standardized sensitivity analysis, and wide variance in the depth of comparable analysis. These issues have led to repeated challenges in NCLT proceedings and have undermined confidence in the resolution process.
Key Proposals in the Discussion Paper
The paper proposes a modular report structure with mandatory sections covering engagement scope, methodology selection rationale, detailed assumptions, computation sheets, sensitivity tables, and a concluding opinion. Each section would follow a prescribed format with minimum disclosure requirements.
Particularly notable is the proposal for a standardized assumptions table that requires valuers to disclose not just the final assumption values (WACC, terminal growth rate, discount for lack of marketability, etc.) but also the sources and methodology used to arrive at each assumption. This level of granularity is unprecedented in Indian valuation regulation.
The paper also proposes standardized formats for comparable company analysis, requiring valuers to disclose screening criteria, the initial universe of companies considered, the rationale for each exclusion, and the final set of comparables with relevant multiples.
Implications for Practicing Valuers
For individual practitioners and small firms, the standardization proposal represents a significant shift in workflow. Manual report preparation, which currently involves substantial formatting and presentation work, would need to conform to rigid templates. This increases the compliance burden but also reduces the risk of inadvertent omissions.
For larger firms with established templates, the transition may require restructuring existing formats. However, the standardized sections map closely to international best practices, and firms already following IVS or RICS standards will find considerable overlap.
How AI-Driven Report Generation Aligns
Template-driven AI report generation platforms are uniquely positioned to benefit from and support standardization. When the output format is prescribed, the AI system can ensure complete compliance with every mandatory section without relying on the practitioner to remember each requirement. Automated validation can flag missing disclosures before the report is finalized.
The structured nature of standardized formats also makes quality assurance more systematic. Each mandatory field becomes a checklist item, and the AI can cross-reference assumptions against the stated methodology to identify inconsistencies that might otherwise escape manual review.
Comment Period and Expected Timeline
The IBBI has invited comments from stakeholders through a structured consultation process. Based on the Board's historical pattern with similar regulatory changes, we expect a revised draft incorporating stakeholder feedback by mid-2026, with final rules likely taking effect by early 2027. Valuers and firms should begin preparing their workflows for this transition now, rather than waiting for the final notification.
The discussion paper represents a maturation of the Indian valuation ecosystem. For practitioners who embrace the change and invest in structured, technology-assisted workflows, standardization will be a competitive advantage rather than a burden.