Regulatory framework needed for valuers: IBBI official

New Delhi, July 30 (SocialNews.XYZ) There is a need for regulatory architecture including uniform structure of qualification, experience, model code of conduct and penal consequences to be there for the valuation profession to be accepted in the society and for them to place trust in the profession, said an IBBI official.

"It is the time for consolidation of the profession, all the stakeholders have to join their hands together and work towards the progression of the profession, it has to be recognised by everybody including all classes of users," said Pawan K. Kumar, Executive Director, Insolvency and Bankruptcy Board of India (IBBI).

He was speaking at an Assocham interactive session on Indian valuation system.

"For that we need a regulatory architecture. The committee of experts appointed by the Ministry of Corporate Affairs has all the experience and requisite class and they have gone into these deliberations, they have seen the regulatory architecture of the country, how institutions have evolved in the last 50 years both in India and abroad," he added.

Kumar was of the view that the valuation professionals need to keep themselves updated, because globally there are regulations for the profession, besides, there has to be some kind of valuation standards.

"The issue is unless the regulation conforms to certain basic minimum standards... unless they are complied with... the idea is either to pick internationally accepted standards or we should have India-specific standards to be evolved in consultation with valuers in the practice, who can give their inputs," he said.

The top IBBI official also said that first line regulators will have to be the valuation professionals as they have the duty to enroll members, develop the profession, impart education, training and advocacy of the profession and have some kind of compliance over the valuers.

He assured the stakeholders regarding improving the inadequacies that were there in the current system.

"In the current system, the committee deliberated on all the issues whether it is entry norms, role of the VPOs etc. We can have different viewpoints and we can certainly improve the inadequacies which are there in the system but the committee has deliberated on all these issues," Kumar said.

Allaying the concerns about penal consequences, the official said, "Let me assure you that it is very categorically written in the bill that for all valuations done by the valuers there is a presumption of bonafide, however, if a complainant is able to produce evidence that there is a malafide, only then it will follow due procedure laid down under the draft bill."

Anil Goel, co-chairman, Assocham National Council for IBC noted that Indian valuation system is presently at a threshold of major revamping and restructuring with the presentation of Draft Valuers Bill, 2020 and the entire eco-system of valuation profession will undergo huge change.

Source: IANS