IBBI Regulations 2017 (excerpt)
Insolvency And Bankruptcy Board of India (Fast Track Insolvency Resolution Process For Corporate Persons) Regulations, 2017
Regulation 26 Appointment of registered valuer.
The resolution professional shall within seven days of his appointment, appoint one registered valuer to determine the fair value and the liquidation value of the corporate debtor in accordance with Regulation 34:
Provided that the following persons shall not be appointed as registered valuers, namely:-
- a relative of the resolution professional;
- a related party of the corporate debtor;
- an auditor of the corporate debtor at any time during the five years preceding the insolvency commencement date; or
- a partner or director of the insolvency professional entity of which the resolution professional is a partner or director.
Regulation 34. Fair value and Liquidation value.
- The registered valuer appointed under regulation 26 shall submit to the resolution professional an estimate of the fair value and of the liquidation value computed in accordance with internationally accepted valuation standards, after physical verification of the inventory and fixed assets of the corporate debtor.
- After the receipt of resolution plans in accordance with the Code and these regulations, the resolution professional shall provide the fair value and the liquidation value to every member of the committee in electronic form, on receiving an undertaking from the member to the effect that such member shall maintain confidentiality of the fair value and the liquidation value and shall not use such values to cause an undue gain or undue loss to itself or any other person and comply with the requirements under sub-section (2) of the section 29.
- The resolution professional and registered valuer shall maintain the confidentiality of the fair value and the liquidation value.