Institutionalising Valuation Profession in India
Book chapter for IBBI's Annual Publication on the Insolvency and Bankruptcy Code, 2016
Summary: This book chapter evaluates the need for institutionalising the valuation profession in India under a harmonised statutory framework to develop the market for valuation services for the efficient functioning of our insolvency, taxation and corporate law regimes, among other systems that depend on such services.
Abstract
Globally, there has been an emergence of many neo-professions, and this development is no different in India. India has seen the institutionalisation of several market-linked professions in the past, such as Chartered Accountants, Insolvency Professionals, etc. through respective state-sponsored regulations. Just like these professionals, valuers also perform a very useful function in market-based economies. Their services are crucial for ascertaining the value of different classes of assets, as required under different contexts. For instance, valuation is required for several private or public transactions under company law, insolvency law, and tax law, among others. However, unlike other professions, the valuation profession is not institutionalised through state-sponsored regulations or regulated properly. This creates several arbitrage opportunities for malpractices, affects quality-control, and also inhibits the development of the profession.
This book chapter in IBBI’s Annual Publication for 2020: ‘Insolvency and Bankruptcy Regime in India: A Narrative’ released at its Fourth Annual Day, discusses the need to institutionalise professions through state-sponsored regulations. It also discusses the status of the valuation profession in India and the recommendations of the Committee of Experts report on the valuation profession and the Draft Valuers Bill, 2020.
The authors of the chapter are:
Manmayi Sharma, Research Fellow, Corporate Law and Financial Regulation 
Akash Chandra Jauhari, Research Fellow, Corporate Law and Financial Regulation
Filed Under
About the Authors
Akash Chandra Jauhari is a Co-Lead (Corporate Law and Financial Regulations) working in the area of Corporate Law and Financial Regulation. He is currently involved in projects relating to insolvency and bankruptcy laws, and regulation of valuation professionals. Akash holds a B.A. (Pol. Science) LL.B. (Hons.) from National Law University, Odisha, Cuttack. He has practised law, which included appearing before judicial and quasi-judicial forums, for over three years in New Delhi with Wadhwa Law Chambers (2016-2019) and in Lucknow, Uttar Pradesh with Mr. A.K. Jauhari (2019). While practicing law, Akash was involved in matters in the fields of public and private law inter alia Constitutional Law, Consumer Law, Contract Law, Arbitration Law, Insolvency Law, Securitisation Law, Companies Law. Despite being involved full-time in his law practice, he also contributed as a Specialist Editor to the 1st Edition of Wadhwa Law Chambers Guide to the Insolvency and Bankruptcy Code (2019),1st Edition of Wadhwa Law Chambers Shorter Insolvency and Bankruptcy Code with Procedures (2020), and assisted Mr Anirudh Wadhwa and Mr Anirudh Krishnan in the 6th Edition of Justice R.S. Bachawat’s Law of Arbitration and Conciliation (2017).
Manmayi is a Senior Resident Fellow working at Vidhi Karnataka. Manmayi is a graduate of the National University of Advanced Legal Studies, Kochi (2016). Prior to joining Vidhi, Manmayi worked at the law firm of Dhir & Dhir Associates, where she litigated and provided advisory services to various clients in matters pertaining to the Insolvency and Bankruptcy Code. She has also previously worked with the Centre for Law and Policy Research, where she litigated in the areas of public health, women's rights and rights of disabled.
