The recommendations were part of the Draft Valuers Bill, 2020, which proposes to regulate and develop the profession along the lines of the Institute of Chartered Accountants of India (ICAI) for valuation professionals.
The CoE, headed by chairman of the Insolvency and Bankruptcy Board of India, MS Sahoo, was commissioned by the MCA to come up with a regulatory framework for the valuation profession on August 30, last year.
The valuation profession deals with valuation of various assets such as the plant and machinery or the land and buildings of a company among others. Currently the Companies (Registered Valuers and Valuation) Rules, 2017, regulates valuation procedures for the mentioned assets.
The need for regulation arose as valuations were done on a part-time basis by chartered accountants or cost accountants in a non-standardised manner. Also there are many asset assets classes where valuation is required and there was a need for credibility and accountability in the process.
The Draft Valuers Bill envisages valuation as a profession in itself like chartered accountancy, with institutes providing full-time vocational courses post the 10+2 level and beyond with entrance examinations and certifications to practice.
The NIV would be in charge of regulations, the syllabus for educational institutes and a quasi-judicial body for disputes.
The MCA has invited public comments on the Bill, the deadline for which is May 14.