DRAFT VALUERS BILL 2020- A NEW ERA OF VALUATION-LAW DECODED-BY CS ROHIT KUMAR

A new Valuer Professional

WHY NEED ARISE OF NEW PROFESSIONAL, A VALUER?

As of today, there is neither standardised formula for valuing assets of corporates nor proper regulatory framework governing the valuation professionals which are very important to unlock the real value of assets.

Currently, there is an ad-hoc framework for valuation professionals and they are basically governed under Companies Act, and IBBI is empowered to implement regime of registered valuers. For long, such valuation services are provided by CA & Merchant Bankers under various legislations such as Companies Act, Income Tax Laws, SEBI, FEMA etc in a non-standardised manner involving high degree of subjectivity of valuer which most of the time resulted into mis-matching between reality & excel figures . 

Moreover, a valuation can not be a part-time services for CS or CA. This requires altogether different set of skills which are beyond Accounting, Tax, and Excel Sheets. Therefore, the panel headed by IBBI Chairperson M S Sahoo, has submitted the "Draft Valuers Bill, 2020". 

Draft Valuers Bill, 2020  envisage valuation as a separate profession in itself  like Company Secretary, CA, Cost Accountant, with full-time vocational courses post the 10+2 level

WHAT REPORT SAYS?

The report lays down 4 key elements which are as follows: 
  1. To set up a National Institute of Valuer, a statutory body primarily responsible for regulating profession of valuers.
  2. Cadre of Valuers for rendering professional services.
  3. To establish Valuer institute for providing educational courses
  4. Valuation Professional Organisation (VPOs) development of the valuation profession.

MCA has invited public comments on the bill, the deadline for which is May 14. 

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Comments

  1. Chadils Valuations LtdFebruary 2, 2021 at 9:08 PM

    Thank you for putting all these strategies into a very readable place. It shows your ability and great skills. keep sharing such article in future. Property Valuation Dubai

    ReplyDelete

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