Govt working on law to regulate asset valuers: Corp Affairs Secretary

Injeti Srinivas says corp affairs ministry is looking for a separate law like the one for chartered accountants of company secretaries

The Union government is considering formulating a law to regulate asset valuers for improving the work practice and discipline of professionals in this field.  

Injeti Srinivas, secretary, the ministry of corporate affairs, said, "You have the registered valuer. You don't have a separate law. We are looking at the possibility of separate law like a law for chartered accountants, or company secretaries, to regulate this category because they are most critical".

Speaking at a conference on the Insolvency and Bankruptcy Code (IBC) by Confederation of Indian Industry (CII), Srinivas said, "Valuation is at the heart of the entire process. If valuations are faulty, the outcome will be undesirable."

At first, the government will have standards for valuers and then that could basis for law. There will be meetings with stakeholders to understand issues, he said. He, however, did not say as to when a bill for the proposed law will be ready.

"Valuation plays a crucial role in decisions on resolutions under IBC. Beyond the scope of their work lie, critical issues such as income tax and it is important to regulate valuation activity," Shardul S Shroff, executive chairman,  Shardul Amarchand Managaldas (SAM) said.

The secretary said it (IBC) is stabilising now. "There is legal framework...is quite robust and undergoing whatever change is required. There is an institutional framework in place," Srinivas said.