Govt mulls national institute for valuers

NEW DELHI: The Corporate Affairs Ministry is set to begin working on creating a national institute for valuers akin to the Insitute of Chartered Accountants of India said corporate affairs secretary Injeti Srinivas on Saturday. Srinivas also said that the ministry was also looking into creating a framework for credit rating agencies.

“We now feel that we have enough critical mass (of valuers) to once again make an attempt to have a national institute for the valuer’s profession along the lines of ICAI” said Srinivas. The centre had in 2008 began work on legislation to regulate corporate valuers but did not proceed to enact the law at the time.

There are currently 11 registered valuer organisations and approximately 2000 registered valuers in India. The registered valuer profession is regulated by the Insolvency and Bankruptcy Board of India. All valuations done under the Companies Act and the Insolvency and Bankruptcy Code must be done by registered valuers.


The ministry is likely to begin inter-ministerial discussion to bring work on a bill to create a national institute for valuers.

New framework to increase accountability of credit rating agencies

Srinivas also said that credit ratings’ agencies had not received much blame for their roles in the recent spate of corporate fraud cases because of a lack of a clear framework which would allow a regulator to pinpoint deviations in the work of these ratings agencies.

“We are looking at revisiting the framework of the credit rating agencies also. There are some areas where if there is neglect or if there is improper conduct that can be detected. But, If there is standardization, if there is more education, more professional development then it is better for the profession” said Srinivas.