New Delhi, Oct 18 (IANS) 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 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 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 valuers. There are eight RVOs and 162 registered valuers as on date, it added.