Valuation of different kinds of assets is undergoing a metamorphosis in recent times due to emerging complexities in Corporate Management, Resolution of Insolvency &Bankruptcy for corporate, MSMEs, Partnership firms and individuals. The Government has come out with sweeping changes by revamping completely into the new Companies Act 2013 and the new Insolvency & Bankruptcy Code 2016 . The new statute and the Code had put in place a robust and efficient regulatory mechanism in the form of the Companies (Registered Valuers & Valuation) Act 2017 for regulating the Valuation Profession, Valuation of assets and Registered Valuers contemplated under the said acts. These are intended to bring in the much needed transparency, ethical practices and security & safety of various institutions connected with finance and economy of the country to enable the economy to grow at the expected phase.
The said Regulations are unique in the sense that they are a form of Regulated Self Regulation of the Professional Valuers by the Registered Valuer Organisations (RVOs) which in turn are recognized and regulated by the Regulating &Registering Authority viz Insolvency and Bankruptcy Board of India (IBBI)
There are 11 RVOs with over 15000 members registered with them. Out of these 15000 Valuers, 2000 Professional valuers under 3 asset classes have already passed the Online Valuation Examination conducted by IBBI and registered with the IBBI as Valuers under Section 247 of the Companies Act 2013 as on today. The three asset classes are Land & Building, Plant & Machinery and Securities and Financial Assets.
The pioneer among the RVOs is the IOV Registered Valuers Foundation, New Delhi which is a Section 8 company promoted by the Institution of Valuers (IOV), the oldest Valuation Professional Organisation in India which is celebrating its 50th anniversary this year. The IOV has over 30000 members spread across 52 branches all over India in almost all the states, NCR and the union territories. The IOV Registered Valuers Foundation has the unique status of having the largest number of their members registered with the IBBI. Infact nearly 50% of the currently registered valuers under the IBBI are members of the IOV RVF.
There is a pertinent need for the RVOs to sensitize the Registered Valuers under the Companies Act 2013 which is an ongoing process. The IOV RVF and the IOV have planned an ambitious program in almost the various major cities in India to enable Registered Valuers all over India to meet the new challenges in Valuation Practice and ensure efficient enforcement of the provisions of the Companies Act 2013 and Insolvency and Bankruptcy Code 2016 by providing appropriate Valuation of assets required under the said statutes.
Chennai Branch of IOV which is one of the main hubs of Valuers in southern India has organized the first of a series of Continuing Education Program for Valuer of the three classes of assets at Hotel Accord Metropolitan, Chennai. The One day Metro conference on Valuation was conducted by IOV Chennai Branch on 21st July 2019, which attracted over 250 delegates from all over India. Domain experts on important aspects of Valuation of Assets and globally accepted practices and Standards made presentations during the One day conference sensitizing the Valuers.