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Time is ripe for the setting up of national level institute for valuers on the lines of the CA Institute, Corporate Affairs Secretary Injeti Srinivas said on Saturday.
"We have enough critical mass to make 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 eleven 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 account are likely to begin soon.
It may be recalled that even in the year 2008 the Centre had come up with a Bill on Valuation, but did not proceed with it for enactment.
VALUATION STANDARDS
Srinivas said that 'Indian Valuation Standards' are a work in progress and could soon be a reality. He also felt that in a globalised world the best approach would be for Indian standards to adopt the international valuation standards, albeit with some carve outs.
STRESSED ASSETS
Reacting to the latest RBI circular on stressed assets, Srinivas told reporters that 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.
Insolvency and Bankruptcy Code (IBC) always has been the last resort and 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.
Commenting on the RBI circular, Sunil Mehta, Chairman Indian Banks Association, said that latest RBI move is a welcome step and it brings out a lot of clarity. The latest RBI circular 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 new RBI circular in place, he told reporters.
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