The recommendations were part of the Draft Valuers Bill, 2020, which proposes to regulate and develop the profession along the lines of the Institute of Chartered Accountants of India for valuation professionals.
The ministry of corporate affairs (MCA) proposed to establish the National Institute of Valuers (NIV) as the regulatory body for the valuation profession as per the recommendations of a committee of experts (CoE) released on April 16, 2020.
The recommendations were part of the Draft Valuers Bill, 2020, which proposes to regulate and develop the profession along the lines of the Institute of Chartered Accountants of India (ICAI) for valuation professionals.
The committee of experts, headed by chairman of the Insolvency and Bankruptcy Board of India, MS Sahoo, was commissioned by the MCA to come up with a regulatory framework for the valuation profession on August 30, last year.
The valuation profession deals with valuation of various assets such as the plant and machinery or the land and buildings of a company among others. Currently the Companies (Registered Valuers and Valuation) Rules, 2017, regulates valuation procedures for the mentioned assets.
The need for regulation arose as valuations were done on a part-time basis by chartered accountants or cost accountants in a non-standardized manner. Also, there are many asset classes where valuation is required and there was a need for credibility and accountability in the process.
The Draft Valuers Bill envisages valuation as a profession in itself like chartered accountancy, with institutes providing full-time vocational courses post the 10+2 level and beyond with entrance examinations and certifications to practice.
The National Institute of Valuers would be in charge of regulations, the syllabus for educational institutes and a quasi-judicial body for disputes.
The MCA has invited public comments on the Bill, the deadline for which is May 14 2020.
Further, ICAI has also invite it’s member for their valuable suggestion on the bill. Members can submit their comments by 12 noon of 10th May 2020 by the link https://forms.gle/ARGBUP3BrhnY5g4o9
READ THE FULL ANNOUNCEMENT BELOW:
|ICAI invites suggestions/comments from members on Draft Valuers Bill, 2020 by 12.00 Noon on 10th May, 2020. – (16-04-2020)