Valuation as a profession was required to be disciplined for bringing in uniformity in the practices and procedures followed by Valuation professionals. In this direction, the Government of India has come out with a legal framework for this niche area of practice.
With the notification of Section 247 of the Companies Act, 2013 and the Companies (Registered Valuers and Valuation) Rules, 2017, the valuation profession in India is also being regulated and disciplined like other professions through a Regulatory framework. This profession got statutory status in October, 2017 for the valuations related to the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016.
Before this regulatory framework put in place, Valuation practices were not uniform and there were varied perspectives of the valuers, regulators and other stakeholders with regard to valuation. Nevertheless, the important aspects of valuation i.e. trust and confidence of people on valuation remains the same. Valuation is the most fundamental term during a financing round but is crucial to understand while deriving the value. In this direction, it becomes important to understand the various viewpoints on valuation to make a considered view.
Also, the Institute of Chartered of India through Valuation Standards Board has issued Valuation Standards which are first of its kind in India for financial valuation, the same Valuation Standards have also been adopted by ICAI Registered Valuers Organisation.
In addition to the various joint initiatives of Valuation Standards Board with ICAI RVO, the ICAI RVO is facilitating the members in enrolling the members as Registered valuers. ICAI RVO has planned to associate with industry chambers for organising training/ workshops in India, to train and develop the Valuers on a continuous basis.
Valuation Standards Board of ICAI and ICAI Registered Valuers Organisation (ICAI RVO) have taken the joint initiative and are bringing this Second Series of publication on ‘Valuation: Professionals’ Insight’ to help the professionals in understanding various aspects of business valuation from the perspective of other professionals.