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“There is a need for uniform structure of qualification, entry norms, experience, some sort of model code of conduct, penal consequences, inspection, monitoring, regulation, development and others have to be there for the valuation profession to be accepted in the society and for them to place trust in the profession, a top official said at an ASSOCHAM event.”
““It is the time for consolidation of the profession, all of the stakeholders have to join their hands together and work towards of the progression of the profession i.e. it has to be recognised by everybody including all classes of users,” said Pawan K. Kumar, executive director, Insolvency and Bankruptcy Board of India (IBBI) in an ASSOCHAM Interactive Session on Indian Valuation System held on Wednesday. He added, “For that we need a regulatory architecture, the committee of experts appointed by the MCA (Ministry of Corporate Affairs) had all the experience and requisite class and they have gone into these deliberations, they have seen the regulatory architecture of the country, how institutions have evolved in last 50 years both in India and abroad.” Kumar stated that the valuation professionals need to keep themselves updated, because everywhere there is a regulation of the profession, besides, there has to be some kind of valuation standards. “The issue is unless the regulation confirms to certain basic minimum standards, unless they are complied with, the idea is either to pick internationally accepted standards or we should have India-specific standards to be evolved in consultation with valuers in the practice, who can give their inputs,” he said.”
“The top IBBI official also said that first line regulator will have to be the valuation professional organizations as they have the duty to enrol members, develop the profession, impart education, training and advocacy of the profession and have some kind of compliance over the valuers because it would be essential for the central regulator to focus more on oversight and to have control on disciplinary matters so that some sort of discipline is followed by the professionals.Noting that there is a presumption that other users may find value in the services rendered by this class of valuers and they are bound to attract market attention, he said “In valuers bill also we have provided for the time being that these will be applicable only for those who wish to render their services under the Company’s Act or under the IBC. So we are not providing for compulsory usage for others, it is for others to see if they see value, they can provide under their respective legislation, so far we are not.””
“He also assured the delegates about improving the inadequacies that were there in the current system. “In the current system, the committee deliberated on all the issues whether it is entry norms, role of the VPOs etc. We can have different viewpoints and we can certainly improve the inadequacies which are there in the system but the committee has deliberated on all these issues.”Allaying the concerns about penal consequences, Mr Kumar said, “Let me assure you that it is very categorically written in the bill that for all valuations done by the valuers there is a presumption of bonafide, however, if a complainant is able to produce evidence that there is a malafide, only then it will follow due procedure laid down under the draft bill.”He also said that it is about time for all stakeholders to move forward and apply their mind constructively and give constructive feedback so that improvements could be made in the valuation profession and to enable it to take a quantum jump.”
“Anil Goel, co-chairman, ASSOCHAM National Council for IBC & founder-chairman, AAA Insolvency Professionals LLP said that Indian Valuation System is presently at a threshold of major revamping and restructuring with the presentation of Draft Valuers Bill, 2020 and the entire eco-system of valuation profession will undergo huge change. Prior to this, IBBI was appointed as ‘Authority’ in the Companies (Registered Valuers and Valuation) Rules, 2017 with effect from 18.10.2017 by the Ministry of Corporate Affairs.””The transition period for moving from less regulated profession to highly regulated profession of Valuers will take about 3 to 4 years and National Institute of Valuers (NIV) would be created in India to regulate this profession. The actions taken by Govt of India would surely bring growth in the profession and assure trust in the work done by the Valuation Professionals,”” added Goel.”
“Sharing his views, CMA Balwinder Singh, president, The Institute of Cost Accountants of India and Member of Committee of Experts constituted for by MCA, deliberated that “Draft Valuers Bill, 2020 has opened up new vistas in Valuation arena. ICMAI RVO promoted by The Institute of Cost Accountants of India will take leading role in the new regime of Valuation towards providing high quality Valuation education, training and overall growth of the Valuation profession.”Sahil Narula, member, ASSOCHAM & managing partner, RNC Valuecon LLP said, “”Indian Valuation ecosystem is at a very critical juncture and is seeing a lot of changes with the advent of events like the Insolvency & Bankruptcy Code and the Draft Valuers Bill. The emergence of the Valuation professionals during these times shall assist to shape up the future of our country.”””
“Mohit Aggarwal, vice-president, R.K. Associates Pvt. Ltd. opined, “Institutional Framework for Valuers” – Requirement of conducive atmosphere and Balanced, Just and Fair framework for the profession covering service provider and service seeker both to preserve independence of Valuers to help achieving its main objective of delivering fair, factual & credible valuation reporting services.While Viveka Singhal, vice-president, Capital Square Advisory Pvt. Ltd. said that Covid-19 is a hand of God, which is unlocking value of online technologies and businesses.”