The Insolvency and Bankruptcy Board of India (IBBI) issued a circular mandating the generation of a Valuation Report Identification Number (VRIN) for each valuation conducted by Registered Valuers (RVs) under the IBC. The primary intent of the circular is to ensure the authenticity and uniqueness of valuation reports, thereby enhancing transparency and reliability in the valuation process.
The circular outlines the procedure for generating VRINs through an online module developed by the IBBI in consultation with Registered Valuers Organisations. RVs and Registered Valuer Entities (RVEs) must generate a VRIN before submitting their valuation reports and include the VRIN on the front page of each report. Additionally, a facility on the IBBI website allows stakeholders to verify the authenticity of valuation reports using the VRIN.
The circular applies to all valuation reports dated on or after the issuance date of the circular. Insolvency Professionals (IPs) are instructed not to accept valuation reports without a VRIN for such cases. This initiative aims to streamline the valuation process and ensure the integrity of valuation reports under the IBC.
This initiative is part of the IBBI’s broader goal to enhance transparency and reliability in the valuation process, contributing to the overall effectiveness of the insolvency resolution framework. By mandating the generation of VRINs, IBBI ensures each valuation report is uniquely identifiable and verifiable, reducing the risk of fraudulent or manipulated valuations. This builds greater trust among stakeholders, including creditors, investors, and regulatory authorities.