IBBI Tightens MSME Insolvency Norms, Introduces Stricter Valuation & Timeline Rules
New Delhi, May 22 -- The Insolvency and Bankruptcy Board of India (IBBI) has amended its regulatory framework governing both the pre-packaged insolvency resolution process and the liquidation of micro, small and medium enterprise (MSME) corporate debtors, introducing stricter timelines, clearer valuation methodologies, and tighter eligibility restrictions for registered valuers.
Both sets of amendments came into force on May 19, 2026.
Pre-Packaged Insolvency: Faster Valuer Appointment
Under the amended Pre-Packaged Insolvency Resolution Process Regulations, resolution professionals are now required to appoint a set of registered valuers within three days of taking charge, to determine the fair value and liquidation value of the corpora...
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