Panel moots institute of professional valuers

Panel moots institute of professional valuers
Business Standard, July 15, 2009, Page 6

BS Reporter / New Delhi

The expert group, constituted by the government to examine the draft legislative proposal for regulation of valuation professionals, has recommended setting up an institute of valuation professionals, which would be an autonomous and corporate professional body.

This, the group, said would recognise valuation as a separate discipline and be pursued as a well-organised profession.

“Unlike chartered accountants, cost accountants and other disciplines, there’s no discipline for valuation professionals and hence expert group suggested creating a discipline, which would have a quality review mechanism by setting up an institute and making it statutory,” said Amit Mitra, chairman of the expert group and secretary general of industry body Federation of Indian Chambers of Commerce and Industry (Ficci).

The proposed institute would not only function as a regulatory and technical body but would also play a promotional and facilitation role to ensure “high quality” education and examination system for the valuation profession.

The Companies Bill, 2009, which is expected to be tabled in the current session of Parliament, provides for a framework to enable fair valuations in companies and, hence, it calls for having professional valuers.

At present, corporate valuation is done by auditors, merchant bankers, company secretaries or chartered accountants for initial public offerings, mergers and amalgamations, strategic alliances and corporate restructuring.

The proposed institute would be governed by a council of valuation professionals, as recommended the expert group.