National Institute of Valuers for institutional framework for valuers Proposed by MS Sahoo Panel
What is Sahoo Panel?
- 8 member committee of experts headed by IBBI (Insolvency and Bankruptcy Board of India) Chairperson M S Sahoo to look into “valuation professionals”
Members of sahoo panel?
- Presidents of the three professional institutes ICAI, ICSI and ICoAI;
- B Sriram, former MD & CEO of IDBI Bank;
- Prof. R Narayanaswamy, Professor, IIM Bangalore and
- Ajay Bahl, Founding Partner, AZB & Partners, a law firm.
Who appointed sahoo panel?
- Ministry of Corporate Affairs (MCA)
- To examine the need for an institutional framework for regulation and development of valuation profession
Who is a Valuer?
- Valuer is a professional who carries out inspections in order to help determine the current market value of property and/or land.
Current position of valuation?
- Only an ad-hoc framework for valuation professionals is in place
- It is governed by the Companies Act
What is now?
- Sahoo panel submitted report on “valuation professionals” and proposed an institutional framework for valuers by setting up National Institute of Valuers (NIV).
What sahoo panel recommended?
- Sahoo panel recommended to establish a National Institute of Valuers
What is the need of National Institute of valuers?
- No standardized formula for valuing the assets of stressed companies worth thousands of crores who are up for sale under the Insolvency and Bankruptcy Code (IBC).
- No proper regulatory framework governing the valuation profession.
What are the Outcomes of the Report?
- National Institute of Valuers act as a statutory body
- It is responsible for the development and the regulation of the valuation profession in India Responsible for registration and regulation of valuers
- Responsible for valuer institutes and valuation professional organisations (VPO).
- There is a need of establishment of dedicated cadre of valuers is needed, who would render valuation services, after registration with the NIV.
- The proposed cadre of valuers (like chartered accountants, etc) will include both the current practitioners and freshers wishing to have a career in valuation.
Source: Financial Express