ICAI to establish Section 8 company for mediation, arbitration activities

Chartered accountants' apex body ICAI will be setting up a Section 8 company for mediation and arbitration activities, its President Ranjeet Kumar Agarwal said on Friday.

Section 8 companies are set for not-for-profit activities and the Institute of Chartered Accountants of India (ICAI) has so far set up five such companies.

At the inaugural session of 'RESOLVE-2024: An International Convention on Insolvency Resolution & Valuation' in the national capital, he said the institute is in the process of setting up a Section 8 company, under the directives of Law Ministry, especially for mediation and arbitration.

According to him, the Insolvency and Bankruptcy Board of India (IBBI) has asked the institute to help in developing valuation standards for the asset class 'Land & Building' and 'Plant & Machinery' on the lines of the valuation standards prepared by it for the asset class 'Securities or Financial Assets'.

The Insolvency & Valuation Standards Board of ICAI along with ICAI RVO has developed the valuation standards for these asset classes and they have been sent to the IBBI for comments.

The five existing Section 8 companies of the institute are ICAI ARF, XBRL India, IIIPI, ICAI RVO and ISAI.