Integration Of Various Indian Statutes For Valuation

The concept of valuation is crucial for many economic, financial and transactional activities, financial reporting, investment decisions, and judicial and market-related activities. A consistent, transparent and market-accepted valuation practice is required in the rapidly growing & emerging market economy of India.

When it comes to valuing assets, there was no standard compliance in the past, which led to regulatory and investment challenges that caused uncertainty and confusion among stakeholders. However, the introduction of Section 247 of the Companies Act 2013 in 2017-18 changed everything, leading to the Ministry of Corporate Affairs & Insolvency and Bankruptcy Board of India (IBBI) submitting the Draft Valuers Bill 2020 to the Government for full statutory recognition, regulation and development of the Valuation Profession.

The compliance to valuation standards in the valuation of assets has become mandatory after the provisions for the Registration of Valuers under the Companies (Registered Valuers & Valuation) Rules 2017 and Insolvency & Bankruptcy Code 2016 (IBC).

Consequently, the Companies (Registered Valuers & Valuation) Rules 2017 and related amendments bring in a new regulatory oversight with regard to Registered Valuers and Valuation.