On 12th August 2024, the Insolvency and Bankruptcy Board of India (IBBI) issued Circular No. IBBI/RV/75/2024, establishing a new protocol for the generation of Valuation Report Identification Numbers (VRINs) for valuations conducted under the Insolvency and Bankruptcy Code, 2016 (the Code). This circular addresses the need for a standardized method to authenticate and trace valuation reports submitted by Registered Valuers (RVs) and Registered Valuers Entities (RVEs), thereby enhancing the credibility and accountability of the valuation process.
The IBBI, as the regulatory authority under the Companies (Registered Valuers and Valuation) Rules, 2017 (the Rules), oversees the registration, monitoring, and development of valuers. Under the Code, only these registered professionals are authorized to conduct valuations. Historically, RVs and RVEs have submitted valuation reports with or without reference numbers, leading to potential challenges in verifying the authenticity of such reports. The introduction of the VRIN aims to address this issue by providing each valuation with a unique identification number.
To facilitate this new requirement, the IBBI has developed an online module accessible through its website at https://www.ibbi.gov.in. Registered Valuers and their Entities are required to log in using credentials provided by the IBBI to generate a VRIN for each valuation report. This unique VRIN must be included on the front page of the valuation report before submission. The VRIN system not only ensures that each report is uniquely identifiable but also allows stakeholders to verify its authenticity through a verification feature available on the IBBI website.
The circular mandates that the VRIN requirement applies to all valuation reports dated on or after the issuance of this circular. Insolvency Professionals (IPs) are directed to reject any valuation reports that do not include a VRIN, ensuring that only those reports that comply with this new protocol are accepted and considered in insolvency proceedings. This measure is expected to streamline the valuation process and enhance the reliability of valuation reports used in the insolvency resolution process.
This directive is issued under the powers conferred by Section 196 of the Insolvency and Bankruptcy Code, 2016, and aligns with the associated regulations and Valuation Rules. By implementing the VRIN system, the IBBI aims to strengthen the regulatory framework governing valuations, ensuring greater transparency, accuracy, and accountability in the valuation process within insolvency cases.
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