Report of the Committee of Experts Development of Valuation Professionals
Developing the valuation profession and the market for valuation services in India
The valuation profession is very important institution for market economies. Valuation services are required for transactions under several enactments and market-based arrangements (such as mergers, acquisitions, commercial agreements, etc.). Regulating these services appropriately is crucial for ensuring standardization of practices and reducing commercial uncertainties. However, valuation professionals and the market for valuation services are largely unregulated, which creates several arbitrage opportunities.
In order to fill this lacuna, the government had constituted a committee in September, 2019 to examine the need for an institutional framework for regulation and development of the valuation profession in India. It submitted its report along with a draft bill in April, 2020.
The primary objectives of the proposed Bill are development and regulation of the valuation profession and the market for valuation services in India. It also seeks to protect the users of such services.
The Bill provides for a two-tier model for the regulatory governance of the profession. It provides for the establishment of the National Institute of Valuers (NIV) as the principle regulator, and recognition of Valuer Professional Organisations to act as frontline regulators, which shall be primarily responsible for the development of the profession. The Bill envisages specialised educational courses along-with a mandatory internship for entry into the profession. These courses are to be delivered by Valuers Institutes, registered with the NIV. The examinations for these courses are also to be conducted by NIV.
About the Contributors
Akash Chandra Jauhari is a Senior Resident Fellow 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).
Aishwarya was a Senior Resident Fellow working in the area of Corporate Law and Financial Regulation. At Vidhi, she has primarily worked on engaged/commissioned projects from various ministries, statutory authorities and regulators, where she provides legal research and drafting support at various stages of law-making. Aishwarya works on a variety of legal and regulatory matters and allied issues in public policy, chiefly related to insolvency laws, competition laws and corporate governance laws. Aishwarya graduated with a B.A. LL.B (Hons.) from Jindal Global Law School (JGLS) in 2017. During her time there she worked on two human rights reports and attended specialised courses in Advanced Corporate Law and Competition Law. She has also interned under Senior Advocate Ramji Srinivasan, in Avantha Holdings Ltd. and in leading law firms.
Manmayi is a Research 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.
Saumya Jaju was a Project Fellow at the Vidhi Centre for Legal Policy.