National Institute of Valuers for institutional framework for valuers Proposed by MS Sahoo Panel 

National Institute of Valuers for institutional framework for valuers Proposed by MS Sahoo Panel 

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National Institute of Valuers for institutional framework for valuers Proposed by MS Sahoo Panel 

sahoo panel on institute of valuers

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)

Why?

    • 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

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