New Delhi: The government will look at setting up a national institute for valuers on the lines of chartered accountants’ apex body ICAI, a senior official said Saturday.
A similar attempt was made way back in 2008.
“We now feel that we have enough critical mass to once again make an attempt to have a national institute for the valuers’ profession on the lines of ICAI… It will require a lot of hardwork,” Corporate Affairs Secretary Injeti Srinivas said.
Professional institutes like the Institute of Chartered Accountants of India (ICAI) have been set up under Acts of Parliament.
The Companies Act, 2013 provides a comprehensive framework for development and regulation of the profession of valuers.
Speaking at a national seminar on valuation here organised by the Insolvency and Bankruptcy Board of India (IBBI), Srinivas stressed on the importance of professional competence, conduct and ethics of valuers.
He also said standards for valuation are likely to be finalised in the near future, adding that the immediate priority is that Registered Valuers Organisations (RVOs) should develop and further improve their code of conduct as each RVO is a frontline regulator.
Srinivas noted that in a market economy, it is surprising that a 100-year-old profession – valuation –somehow has been “flying below the radar”.
In 2008, there was an initial attempt to have a bill on the lines of ICAI Act for having an institute for the valuers, he said, adding that now valuation profession cannot fly below the radar as the Corporate Affairs Ministry is taking various steps.
“When we talk about any profession, whether it is a valuer, chartered accountant, cost accountant, company secretary, insolvency professional or whoever you refer to, the overall context is that when you have a market economy there are minimum prescriptions… there are minimum ingredients for a market economy to be successful.
“A very strong corporate governance structure, independent professional cadre which supports this strong governance… and a strong competitive environment. These are the broad principles for a market economy to deliver,” he said.
IBBI Chairperson M S Sahoo emphasised the need for absolute integrity and impartiality for valuers.
“Markets can go wrong in discovering a price (of an asset) but a registered valuer, a responsible, accountable and capable person with integrity cannot afford to go wrong in discovering the value,” he added.
The IBBI recognises RVOs, registers valuers and monitors their conduct and performance.
There are around 1,350 valuers registered through 11 RVOs.