Govt-appointed panel proposes institutional framework for valuers, moots National Institute of Valuers

A government-appointed committee of experts has proposed an institutional framework for valuers by way of setting up the National Institute of Valuers.

The panel, headed by IBBI (Insolvency and Bankruptcy Board of India) Chairperson M S Sahoo, has also submitted the 'Draft Valuers Bill, 2020'.

The corporate affairs ministry sought comments on the bill, which has recommended setting up of the institute. The deadline for submitting comments is May 14.

The panel was constituted by the ministry on August 30, 2019 to examine the need for an institutional framework for regulation and development of valuation profession.

"Based on a comprehensive study and analysis of all relevant issues and taking the inputs of key stakeholders, the committee has submitted its report to the Government of India on March 31, 2020 along with Draft Valuers Bill, 2020, recommending to establish a National Institute of Valuers," the ministry said in a release on its website.

According to the committee, there should be enactment of an exclusive statute to provide for the establishment of the institute to protect the interests of users of valuation services in India and to promote the development of, and to regulate the profession of valuers and market for valuation services.

"The institute shall register and regulate Valuer Institutes, VPOs (Valuation Professional Organisations) and Valuers.

"Valuer Institutes, who would compete among themselves for excellence, shall offer courses and conduct internal examinations, while the institute shall conduct a screening examination for admission to the courses and a qualifying examination for registration as valuers," the report said.

Among others, the panel has suggested measures to ensure a minimum quality of valuation services across the market..

"... only valuers registered under the proposed institutional framework should be permitted to render valuation services. Such mandatory provision, however, may start with valuation services under the Companies Act, 2013 and Code, followed by phased inclusion of valuation services under other laws," the committee's report said.