Credible valuations are critical to the efficient working of the capital markets, businesses, government and all its stakeholders. With growing shareholder activism, importance of independent valuations is arising all over the world including India. Different Regulators in India have prescribed different valuation methodologies for different purposes.
However, in most of the cases, there is neither any guidance on the basis for selection of a particular methodology nor much of details on its manner of application including its technical nitty-gritties.
In this backdrop, the Companies Act, 2013 brought into the light the concept of ‘Registered Valuers’ to regulate the practice of Valuation in India and to standardize the valuation in line with International standards.
Consequentially, The Ministry of Corporate Affairs (MCA) notified the provisions governing valuation by registered valuers [section 247 of the Companies Act, 2013 (the Act)] and the Companies (Registered Valuers and Valuation) Rules, 2017 (the Rules), both to come into effect from 18 October, 2017.
Dear Professional Colleagues,
Ministry of Corporate Affairs had constituted a Committee of Experts (CoE) under the Chairpersonship of Dr. M. S. Sahoo, Chairperson, Insolvency and Bankruptcy Board of India (IBBI) on 30th August 2019 to examine the need for an institutional framework for regulation and development of the Valuation Profession. Based on comprehensive study and analysis of all relevant issues and taking the inputs of key stakeholders, the Committee has submitted its report to the Government of India on 31st March, 2020 along with Draft Valuers Bill, 2020, recommending establishing a National Institute of Valuers. Ministry of Corporate Affairs has solicited Public comments on the Draft Valuers Bill, 2020.
In view of the above, we are inviting suggestions and comments on Draft Valuers Bill, 2020. You are requested to provide your valuable suggestions and comments through the following link latest by 17th May 2020:
https://docs.google.com/forms/d/e/1FAIpQLSdYSqvWCjWT-pq0aDN03NOYURITQdK8GgutoF8ZsclMaYrruw/viewform You may please refer to Draft Valuers Bill, 2020 attached inside the online form.