From February next year, only entities registered as valuers with the IBBI can carry out valuation of assets under the insolvency law, according to a circular.
From February next year, only entities registered as valuers with the IBBI can carry out valuation of assets under the insolvency law, according to a circular. The registration of valuers is done by the Insolvency and Bankruptcy Board of India (IBBI). Valuation of assets is a key factor for an “informed decision making” under the Insolvency and Bankruptcy Code (IBC).
“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. In a circular issued on Thursday, it also said that every valuation under the Code is to be conducted by a valuer registered with the IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017.
Noting that a key objective is maximisation of the value of assets, the circular said, a critical element towards achieving the objective is “transparent and credible determination of value of the assets to facilitate comparison and informed decision making”. The IBBI conducts valuation examination for three asset classes — Land and Building, Plant and Machinery, and Securities or Financial Assets — as well as recognises Registered Valuer Organisations. At present, there are eight such organisations and 162 registered valuers, as per the IBBI data.