Only IBBI registered valuers to undertake asset valuation from Feb 2019

The circular said every valuation required under the Code will be conducted by a "registered valuer", that is, a valuer registered with the IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017.


Devdiscourse News Desk | New Delhi | Updated: 19-10-2018 03:01 IST | Created: 18-10-2018 22:44 IST
Only IBBI registered valuers to undertake asset valuation from Feb 2019
However, rules allow for a transitional arrangement enabling those already doing a valuation to continue rendering valuation services without a certificate of registration up to January 31, 2019. (Image Credit: Pixabay)
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Valuation of assets under insolvency will only be done by valuers registered with the Insolvency and Bankruptcy Board of India (IBBI) from February 1, 2019, the board said in a circular.

"Credible determination of value" is a key element for maximisation of the value of distressed assets, which is the main objective of the Insolvency and Bankruptcy Code (IBC), it said.

"With effect from February 1, 2019, no insolvency professional shall appoint a person other than a registered valuer to conduct any valuation under the Code or any of the regulations made thereunder," the IBBI said.

The circular said every valuation required under the Code will be conducted by a "registered valuer", that is, a valuer registered with the IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017.

However, rules allow for a transitional arrangement enabling those already doing a valuation to continue rendering valuation services without a certificate of registration up to January 31, 2019.

Also, if the valuer has already been appointed and valuation is not complete before January 31, 2019, the valuer will have to finish such valuation within the next three months, it said.

"A key objective of the IBC is the maximisation of the value of assets of certain persons and consequently value for its stakeholders. A critical element towards achieving this objective is transparent and credible determination of the value of the assets to facilitate comparison and informed decision making," the IBBI said.

The IBBI conducts valuation examinations for all three asset classes - land and building, plant and machinery, and securities or financial assets.

It also recognises Registered Valuer Organisation (RVOs) and registers values. There are eight RVOs and 162 registered valuers as on date, it added.

(With inputs from agencies.)

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