New Delhi, Nov. 20 -- The Insolvency and Bankruptcy Board of India (IBBI) has proposed a new format for professionals valuing distressed assets to make reports uniform, credible, and reduce debt resolution lawsuits.

The new format prescribed on Wednesday increases the need for disclosures on valuation risks, any conflict of interest involved and how professional judgement is used in determining the value of assets. The idea is to enhance the confidence of stakeholders in the due diligence process and to make negotiations more realistic for better outcomes.

The move to standardise the valuation report comes in the context of these reports becoming the subject of litigation in some of the bankruptcy cases. A standardised format is expecte...