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Registered valuers should not limit their role to only that of valuation in insolvency proceedings or for meeting the requirements of the Companies Act, PP Chaudhary, Minister of State for Law & Justice and Corporate Affairs, said.
Registered valuers should explore other areas like valuing projects for lending made by banks, Chaudhary said at an IBBI event in the Capital. Chaudhary, who distributed certificates to the first batch of Registered Valuers under the Companies Act 2013, said these professionals should also look to render their services to the Government in determining the fair value of import or export items.
This would help ensure that the loss of revenue on account of levy of customs duty or outgo of duty drawback/export promotion benefits could be minimised, he said.
In all, the Minister handed out certificates to 16 registered valuers. The Insolvency and Bankruptcy Board of India (IBBI) is now the authority that conducts the exams for Registered Valuers. Chaudhary said that to make the Insolvency and Bankruptcy Code (IBC) more effective and transparent, there always remains a need to ensure that the resolution occurs at a ‘fair value’, so that the stakeholders do not lose substantially in the process. A need has been felt to introduce Professional Valuers in the system who would help stakeholders accept deals based on intrinsic or true value of the assets, he said.
During implementation of IBC, it was further felt that reforms ushered by it would be incomplete without suitable reforms in the field of valuation. Therefore, the Government entrusted IBBI to bring forth a trained class of Registered Valuers for valuation of assets of corporate enterprises, Chaudhary said.
Speaking on the occasion, MSSahoo, Chairman, IBBI, said the Board would only be a temporary body as regards oversight and conduct of exams of registered valuers. Going forward, one would require a separate statute enacted by Parliament for this profession.
Later, Sahoo told BusinessLine that he expects India to have atleast 40,000 Registered Valuers in a year’s time.
Sahoo also said that for now use of registered valuers is mandatory only for Insolvency and Companies Act 2013 related work.
However, if there are other areas, those could be voluntarily adopted, he said.
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