Valuation is a vital input which plays an important role in strategic decision making in respect of an asset. Considering the significant role played by valuation profession in the economy, this profession needed Government intervention which was not there in required measure. The rules were framed by the Government for proper development , regulation and control of this profession in the recent few years.
Now, rule 10 of the Companies (Registered valuers and valuation) Rules 2017(Rules) read with section 247 of the Companies Act 2013 (Act)requires that a registered valuer shall conduct valuations required under the Act.
Further, circular no. IBBI/RV/019/2018 dated 17.10.2018 of IBBI mandates that valuations required under the IBC and any of the regulations made thereunder shall be conducted by a registered valuer.
Thus, two important areas of commercial sphere are covered by these rules.
To accomplish the task of correctly evaluating the assets under the legal framework stated above, competent and qualified valuers are to be registered after proper due diligence of their eligibility, competence and qualification. Besides this, they are to be given mandatory education programme, pre practice education programme and continuing education programme every year. Their professional activities are to be monitored and regulated.
These important tasks have been assigned to Registered Valuers Organisations. Registered Valuers Organisation is an organisation recognised under sub rule(5) of rule 13 of the Companies (Registered Valuers and Valuation) Rules 2017 and is a frontline regulator. An applicant has first to be a member with an RVO before seeking registration as a registered valuer.
Our organisation- Divya Jyoti Valuers Foundation is an RVO duly recognised by the Insolvency and Bankruptcy Board of India(IBBI) the apex regulator of valuation profession. We have been assigned the responsibility to admit, groom, monitor and discipline the members of the profession, which I feel is being discharged to the best of our abilities and to the satisfaction of all the stakeholders including our regulator, members and faculties.
With the rapid economic development and various steps taken by the Government for it, valuation profession is proving to be a prosperous and satisfying career to the professionals who opt for it and it will prove to be a better career choice in future as well.
I am thankful to guidance and support provided by IBBI, our board members and faculties. I wish all the best to our valuers members, our team at DJVFRVO and all stakeholders.