Do you think that there is a need to institutionalise the valuation profession in the country? Comment
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· The market usually discovers the price of an asset, reflecting its worth. However, it is often neither feasible nor desirable to conduct a market test for every asset.
· An economy requires valuations of assets to facilitate a variety of transactions. A corporate insolvency proceeding envisages estimation of ‘fair value’ and ‘liquidation value’ of the assets.
· Given its growing importance, the valuation profession has emerged as a key institution.
· The institutional arrangement for any profession is a statutory body with twin responsibility of development and regulation of the profession.
· The Insolvency and Bankruptcy Code entitles certain stakeholders in term of liquidation value.
· It envisages certain decisions with reference to fair value and liquidation value. With the operationalisation of the Code in late 2016, the need for an institutional arrangement became acute.
· Currently, there are 16 RVOs with 4,500 RVs registered under the Rules across three asset classes. The remit of the Rules is limited to valuations required under the Code and the company law.
· A Committee of Experts recently recommended an exclusive statute to provide for the establishment of the National Institute of Valuers to protect the interests of users of valuation services and to promote the development of, and to regulate the profession of valuers and market for valuation services.
K. V. A 3 years
Kindly review
IAS Parliament 3 years
Good attempt. Keep Writing.
Sandy Singh 3 years
Kindly review.
IAS Parliament 3 years
Try to stick to word limit and bring coherence in the answer. Keep Writing.
