The time is ripe for the setting up of a national level institute for valuers along the lines of the CA Institute, Corporate Affairs Secretary Injeti Srinivas said on Saturday.

“We have enough critical mass to make a national institute of valuers on the lines of the ICAI,” Srinivas said at a national seminar on valuation, organised by the Insolvency and Bankruptcy Board of India (IBBI) here. Srinivas also urged the Registered Valuers Organisations (RVO), currently 11 in number, to develop a code of conduct for the valuers. India currently has about 1,750 registered valuers. Meanwhile, indications are that the Corporate Affairs Ministry will begin work on a Bill on valuation professionals and also pave the way for a national Institute on valuation.

Inter-ministerial consultations on this are likely to begin soon.

Reacting to the latest RBI circular on stressed assets, Srinivas said it was a very good replacement circular on NPA resolution by the central bank. Banks will now have more delegation with Board level resolution policy. Also, banks will have discretion to choose between resolution via IBC or outside IBC, he said.

IBC has always been the last resort and the RBI circular is in line with this, according to Srinivas. He also said that MCA will soon take up the unfinished agenda including individual insolvency and group insolvency.

Sunil Mehta, Chairman Indian Banks Association, said that latest RBI move is a welcome step as it brings out a lot of clarity. It has given more freedom to banks on resolution, according to Mehta, who is also Managing Director & CEO of Punjab National Bank.

Mehta said that incremental provisioning at end of 365 days will compel banks to take decision. Also, resolution will happen faster than earlier with the new RBI circular in place, he told reporters.

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