ICAI Release Handbook on Best Practices for Registered Valuers

Best Practices for the Registered Valuers are the set of generally acceptable procedures and methodologies that results in the illustrative and transparent representation of true value of the final outcome, under the given circumstances.

Before going through the concept of Best Practices for Registered Valuers, it is paramount to understand the terms “Valuation” and “Registered Valuer”.

Valuation per se is the process of estimating the market value of a financial asset or liability. To understand the valuation process, it is necessary to understand the term value. It is a complex subject which needs professional acumen and in-depth knowledge to unravel the same. However, over a period of time and with the Regulatory framework being put into place, Valuation as a subject has witnessed huge importance and prominence in financial understanding.

The field of valuation existed even before the introduction of Regulatory framework for Valuers under the Companies Act, 2013. Valuation was required under various statutes – FEMA 1999, SEBI Act 1992, Companies Act 2013 (& erstwhile Companies Act 1956 as well), Income Tax 1961, IBC 2016 to facilitate a variety of transactions like mergers, acquisitions, liquidations, financing, taxation etc.

Today, a Registered Valuer would imply a person registered with the Authority (IBBI) as a valuer, in accordance with the provisions of the Companies (Registered Valuers and Valuation) Rules, 2017…….