Insolvency Board mandates unique identification number for valuation reports

New Delhi: The Insolvency and Bankruptcy Board of India will provide a unique identification number for each valuation report prepared under the insolvency law to ensure authenticity, the board said in a circular on Monday.

IBBI is the designated authority for registration, monitoring and development of valuers under the Companies Act, 2013. As per the current practice, Registered Valuer (RV)/ Register Valuers Entity (RVE) submit the valuation reports with or without mentioning any reference number leading to potential issues concerning verification. "In order to ensure authenticity and to have a unique reference number of the valuation reports, it has been decided to provide a Valuation Report Identification Number (VRIN) for each valuation conducted under the Code," the IBBI circular said.

This circular applies to all valuation reports dated on or after August 12. Further, the IBBI in consultation with Registered Valuers Organisations has developed an online module which can be accessed through its official website, for the generation of VRINs. The registered valuers and valuer entities will be required to generate unique number and mention them on the front page on valuation reports. "A facility is also being provided on the IBBI website to allow stakeholders to verify the authenticity of the report by using VRIN," the board said.

It has also instructed Insolvency Professionals (IPs) not to accept any valuation reports without a VRIN. The IBBI is a statutory body functioning under the corporate affairs ministry. It was established on October 1, 2016, under the Insolvency and Bankruptcy Code (IBC).