Insolvency and Bankruptcy Board of India (IBBI) Chairperson M S Sahoo on Saturday said markets could go wrong in discovering price of assets but a "registered valuer" should not be wrong even as the government said a lack of valuation standards and regulations is hurting the system.
"Lack of valuation standards and regulations is hurting the system," Injeti Srinivas, Ministry of Corporate Affairs (MCA) Secretary, said at an event while Sahoo said discovering the correct valaution should be the prime objective of a registered valuer.
Sources said the MCA would soon start consultations for a bill on valuation and will also hold consultations with banks, experts and other stakeholders.
They were speaking at a national seminar on valuations here which was attended by Corporate Affairs Ministry officials, regulators and valuation professionals from across the country, as part of a discussion forum for vision for the growth of the registered valuers' profession over short-to-medium term.
Both the regulator IBBI and the MCA are trying to further institutionalise the profession of registered valuers.
Currently, there are 1,350 registered valuers who are registered through the 11 registered valuers' organisations (RVOs).
With effect from February 1 this year, every valuation required under the Companies Act 2013 and the Insolvency and Bankruptcy Code (IBC) 2016 is conducted through registered valuers. RVOs and valuers are watched closely by the stakeholders.
IBBI is also working to provide accountable and competent valuers, Sahoo said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)