Blog - My Valuation Bank
Guidelines for Valuation of Immovable Properties 2009 my valuation bank

Date : 2021-01-04
PROFESSIONAL OPPORTUNITIES FOR REGISTERED VALUERS

These are exciting times. New profession is emerging in India. Companies Act, 2013 brought in many new opportunities. One such opportunity is – opportunity to be Registered Valuer. Registered valuer concept provides new set of focused professionals for valuation of the various assets and liabilities. This is critical step towards standardization. With this concept, a new profession known as “Registered Valuer” has emerged on the corporate scenario. This acronym “Registered Valuer” is likely to gain steam and prestige in foreseeable future. The initial scope assigned to Registered valuer is not very small. Companies Act, 2013, IBC (The Insolvency and Bankruptcy Code), 2016 and SEBI (REIT & IIT) Regulations, 2016 recognise registered valuer as sole valuer for the purpose of valuation. It is expected that high credentials and good work may lead to more recognitions under various provisions for valuation under FEMA, Income Tax, SEBI and other statutes. The concept of registered valuer has emerged from the provisions of section 247 under Companies Act, 2013. Initially experienced professionals are allowed to become registered valuer by way of completing 50 hours class room training followed by formal exam (in MCQ format). After 31.01.2019, only registered valuer (in exclusion to all other professionals) will be allowed to carry out valuation report for the corporate activities mentioned hereunder:

 

Under the provisions of Companies Act, 2013 - In case of Unlisted Companies:

  • Further Issue of Shares (other than Right Issue): This includes
  • Private Placement of Shares [Section 62(1)(c)];
  • Issue of Shares in Preferential basis [Section 62(1)(c)];
  • Issue of Share for consideration other than cash [Section 62(1)(c)] 
  • Issue of shares under a Scheme of Employee Stock Option under the provisions of [Section 62(1)(c)]
  • Non cash transaction involving directors [Section 192(2)]
  • Merger and Amalgamations [Section 230(2)]
  • Demergers [Section 230(2)]
  • Scheme of compromise or arrangement with members [Section 230(2)] 
  • Scheme of compromise or arrangement with creditors [Section 230(2)] 
  • Purchase of minority shareholding [Section 236(2)]
  • Submission of report by company liquidator [Proviso to Section 281(1)(a)]

 

Under the provisions of Insolvency and Bankruptcy Code, 2016 - In case of Business Entities under Insolvency and Bankruptcy:

Insolvency and Bankruptcy Code, 2016 is the supporting element and one-stop solution which addresses all insolvencies in a time-bound manner and also in  economically viable setup. This law has significantly helped India in achieving the historic 30-spot jump in the ease of doing business rankings. IBC is helping in settling failed or bankrupt entities without causing irreparable damage to any stakeholder in the economy. This has potential to be game changer setting new rules for credit appetite and financial discipline. The Insolvency and Bankruptcy procedures are likely to restore confidence of banks, foreign investors, and associated companies in crisis mitigation mechanism related to business entities in the country.

 

The registered valuer has been defined at various places under IBC e.g.  Under Clause 2(1)(m) of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016; Under clause 2(1)(p) of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017; Under clause 2(1)(h) of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016. In all such regulations, the reference has been made to Companies Act, 2013 while defining registered valuer. Appointment of registered valuer has been prescribed in various regulations issued by IBBI from time to time. Some of these are:

 

  • Two registered valuers are required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 27 and 35 of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016].
  • One registered valuer is required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 26 and 34 of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017]
  • Two registered valuers are required to be appointed by liquidator to value the assets [Refer Regulation 34(2) & 35 of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016]  
  • In reference to voluntary liquidation, the registered valuer report [59 (3)(b)(ii) of the Insolvency and Bankruptcy Code, 2016] – This report is required before initiation of process of Voluntary Liquidation.

In case of two registered valuers, both are supposed to submit their separate independent report.

 

Under the SEBI (Real Estate Investment Trusts) Amendment Regulations, 2017

This is heart-warming development, SEBI has also accepted the concept of ‘Registered Valuer’ which has originated from Companies Act, 2013. SEBI has amended its all important SEBI (Real Estate Investment Trusts) Regulations in 2017 by way of amending definition of valuer in Regulation 2(1)(zz). 

 

Futuristic Areas of Valuation

SEBI and Public Listed Companies:: The amendment in SEBI (REIT) Regulation is an indication of pro-active thought about usefulness of ‘Registered Valuer. It is a signal that the profession of ‘Registered Valuer’ will be increasingly recognized by SEBI in reference to various instruments traded on Indian bourses and also in reference to corporate actions of listed public companies. 

 

FEMA and Foreign Investment:: Another such field is foreign investment in India. Corporate valuation is required to be carried out at the time of issuance of shares, transfer of shares, joint ventures, foreign collaborations, FCCB and many more. Presently, registered valuers are not eligible to carry out valuations under the provisions of FEMA. But the author is confident that registered valuers will be recognised to carry out valuation under FEMA (two-three years down the line) in relations to inbound as well as outbound foreign investments. 

 

Income Tax Act and Inadequate Consideration:: Under Income tax provisions, valuation report is required to assess instances of tax avoidance or shifting of tax liability by way of inadequate consideration or excess consideration. Rules in relation to Section 56(2) of the Income Tax Act prescribes the valuation methodology to calculate fair market value (FMV) and the professionals who are eligible to carry out valuation. Author is convinced that in foreseeable future, registered valuers will be allowed to carry out valuation under Income Tax Act also.   

 

Court Directed Valuations:: This has been seen that in oppression and mismanagement litigation, Court directs for third party valuation to resolve the matter. Litigating parties are expected to accept such valuations to buy out each other. As profession of registered valuer will gain acceptability, the NCLT and other courts are also expected to engage ‘registered valuer’ to carry out valuations.    

 

Conclusion

Event specific valuation opportunities are also available. Valuation is sought by stakeholders at the time of change of management; divestment of particular plant, division or brand; valuation of business assets for the purpose of insurance; valuation of assets offered as security for the purpose of strategic debt funding. As per latest trend, joint venture agreement; technology transfer agreement; share subscription agreement; share purchase agreement; shareholders inter-se agreement and many such agreements have specific clause insisting upon valuation to be carried out by registered valuer. These are exciting times for registered valuers. The only caveat is that they need to do their work diligently and without greed while maintaining highest standard of professionalism.

 

================================

 

 

DECLARATION

I, Ajay Garg S/o Sh BM Garg resident of House No. 970, Sector-21D, Faridabad, hereby declare that the article, “Professional Opportunities for Registered Valuers” has been written by me on the basis of legal facts and contents have not been copied from anywhere except legal provisions under various enactments. I further declare that this is my original work and is hereby submitted for publication in monthly e-newsletter of ICSI RVO. 


Date : 2020-07-04
PROFESSIONAL OPPORTUNITIES FOR REGISTERED VALUERS

These are exciting times. New profession is emerging in India. Companies Act, 2013 brought in many new opportunities. One such opportunity is – opportunity to be Registered Valuer. Registered valuer concept provides new set of focused professionals for valuation of the various assets and liabilities. This is critical step towards standardization. With this concept, a new profession known as “Registered Valuer” has emerged on the corporate scenario. This acronym “Registered Valuer” is likely to gain steam and prestige in foreseeable future. The initial scope assigned to Registered valuer is not very small. Companies Act, 2013, IBC (The Insolvency and Bankruptcy Code), 2016 and SEBI (REIT & IIT) Regulations, 2016 recognise registered valuer as sole valuer for the purpose of valuation. It is expected that high credentials and good work may lead to more recognitions under various provisions for valuation under FEMA, Income Tax, SEBI and other statutes. The concept of registered valuer has emerged from the provisions of section 247 under Companies Act, 2013. Initially experienced professionals are allowed to become registered valuer by way of completing 50 hours class room training followed by formal exam (in MCQ format). After 31.01.2019, only registered valuer (in exclusion to all other professionals) will be allowed to carry out valuation report for the corporate activities mentioned hereunder:

 

Under the provisions of Companies Act, 2013 - In case of Unlisted Companies:

  • Further Issue of Shares (other than Right Issue): This includes
  • Private Placement of Shares [Section 62(1)(c)];
  • Issue of Shares in Preferential basis [Section 62(1)(c)];
  • Issue of Share for consideration other than cash [Section 62(1)(c)] 
  • Issue of shares under a Scheme of Employee Stock Option under the provisions of [Section 62(1)(c)]
  • Non cash transaction involving directors [Section 192(2)]
  • Merger and Amalgamations [Section 230(2)]
  • Demergers [Section 230(2)]
  • Scheme of compromise or arrangement with members [Section 230(2)] 
  • Scheme of compromise or arrangement with creditors [Section 230(2)] 
  • Purchase of minority shareholding [Section 236(2)]
  • Submission of report by company liquidator [Proviso to Section 281(1)(a)]

 

Under the provisions of Insolvency and Bankruptcy Code, 2016 - In case of Business Entities under Insolvency and Bankruptcy:

Insolvency and Bankruptcy Code, 2016 is the supporting element and one-stop solution which addresses all insolvencies in a time-bound manner and also in  economically viable setup. This law has significantly helped India in achieving the historic 30-spot jump in the ease of doing business rankings. IBC is helping in settling failed or bankrupt entities without causing irreparable damage to any stakeholder in the economy. This has potential to be game changer setting new rules for credit appetite and financial discipline. The Insolvency and Bankruptcy procedures are likely to restore confidence of banks, foreign investors, and associated companies in crisis mitigation mechanism related to business entities in the country.

 

The registered valuer has been defined at various places under IBC e.g.  Under Clause 2(1)(m) of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016; Under clause 2(1)(p) of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017; Under clause 2(1)(h) of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016. In all such regulations, the reference has been made to Companies Act, 2013 while defining registered valuer. Appointment of registered valuer has been prescribed in various regulations issued by IBBI from time to time. Some of these are:

 

  • Two registered valuers are required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 27 and 35 of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016].
  • One registered valuer is required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 26 and 34 of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017]
  • Two registered valuers are required to be appointed by liquidator to value the assets [Refer Regulation 34(2) & 35 of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016]  
  • In reference to voluntary liquidation, the registered valuer report [59 (3)(b)(ii) of the Insolvency and Bankruptcy Code, 2016] – This report is required before initiation of process of Voluntary Liquidation.

In case of two registered valuers, both are supposed to submit their separate independent report.

 

Under the SEBI (Real Estate Investment Trusts) Amendment Regulations, 2017

This is heart-warming development, SEBI has also accepted the concept of ‘Registered Valuer’ which has originated from Companies Act, 2013. SEBI has amended its all important SEBI (Real Estate Investment Trusts) Regulations in 2017 by way of amending definition of valuer in Regulation 2(1)(zz). 

 

Futuristic Areas of Valuation

SEBI and Public Listed Companies:: The amendment in SEBI (REIT) Regulation is an indication of pro-active thought about usefulness of ‘Registered Valuer. It is a signal that the profession of ‘Registered Valuer’ will be increasingly recognized by SEBI in reference to various instruments traded on Indian bourses and also in reference to corporate actions of listed public companies. 

 

FEMA and Foreign Investment:: Another such field is foreign investment in India. Corporate valuation is required to be carried out at the time of issuance of shares, transfer of shares, joint ventures, foreign collaborations, FCCB and many more. Presently, registered valuers are not eligible to carry out valuations under the provisions of FEMA. But the author is confident that registered valuers will be recognised to carry out valuation under FEMA (two-three years down the line) in relations to inbound as well as outbound foreign investments. 

 

Income Tax Act and Inadequate Consideration:: Under Income tax provisions, valuation report is required to assess instances of tax avoidance or shifting of tax liability by way of inadequate consideration or excess consideration. Rules in relation to Section 56(2) of the Income Tax Act prescribes the valuation methodology to calculate fair market value (FMV) and the professionals who are eligible to carry out valuation. Author is convinced that in foreseeable future, registered valuers will be allowed to carry out valuation under Income Tax Act also.   

 

Court Directed Valuations:: This has been seen that in oppression and mismanagement litigation, Court directs for third party valuation to resolve the matter. Litigating parties are expected to accept such valuations to buy out each other. As profession of registered valuer will gain acceptability, the NCLT and other courts are also expected to engage ‘registered valuer’ to carry out valuations.    

 

Conclusion

Event specific valuation opportunities are also available. Valuation is sought by stakeholders at the time of change of management; divestment of particular plant, division or brand; valuation of business assets for the purpose of insurance; valuation of assets offered as security for the purpose of strategic debt funding. As per latest trend, joint venture agreement; technology transfer agreement; share subscription agreement; share purchase agreement; shareholders inter-se agreement and many such agreements have specific clause insisting upon valuation to be carried out by registered valuer. These are exciting times for registered valuers. The only caveat is that they need to do their work diligently and without greed while maintaining highest standard of professionalism.

 

================================

 

 

DECLARATION

I, Ajay Garg S/o Sh BM Garg resident of House No. 970, Sector-21D, Faridabad, hereby declare that the article, “Professional Opportunities for Registered Valuers” has been written by me on the basis of legal facts and contents have not been copied from anywhere except legal provisions under various enactments. I further declare that this is my original work and is hereby submitted for publication in monthly e-newsletter of ICSI RVO. 


Date : 2020-07-04
PROFESSIONAL OPPORTUNITIES FOR REGISTERED VALUERS

These are exciting times. New profession is emerging in India. Companies Act, 2013 brought in many new opportunities. One such opportunity is – opportunity to be Registered Valuer. Registered valuer concept provides new set of focused professionals for valuation of the various assets and liabilities. This is critical step towards standardization. With this concept, a new profession known as “Registered Valuer” has emerged on the corporate scenario. This acronym “Registered Valuer” is likely to gain steam and prestige in foreseeable future. The initial scope assigned to Registered valuer is not very small. Companies Act, 2013, IBC (The Insolvency and Bankruptcy Code), 2016 and SEBI (REIT & IIT) Regulations, 2016 recognise registered valuer as sole valuer for the purpose of valuation. It is expected that high credentials and good work may lead to more recognitions under various provisions for valuation under FEMA, Income Tax, SEBI and other statutes. The concept of registered valuer has emerged from the provisions of section 247 under Companies Act, 2013. Initially experienced professionals are allowed to become registered valuer by way of completing 50 hours class room training followed by formal exam (in MCQ format). After 31.01.2019, only registered valuer (in exclusion to all other professionals) will be allowed to carry out valuation report for the corporate activities mentioned hereunder:

 

Under the provisions of Companies Act, 2013 - In case of Unlisted Companies:

  • Further Issue of Shares (other than Right Issue): This includes
  • Private Placement of Shares [Section 62(1)(c)];
  • Issue of Shares in Preferential basis [Section 62(1)(c)];
  • Issue of Share for consideration other than cash [Section 62(1)(c)] 
  • Issue of shares under a Scheme of Employee Stock Option under the provisions of [Section 62(1)(c)]
  • Non cash transaction involving directors [Section 192(2)]
  • Merger and Amalgamations [Section 230(2)]
  • Demergers [Section 230(2)]
  • Scheme of compromise or arrangement with members [Section 230(2)] 
  • Scheme of compromise or arrangement with creditors [Section 230(2)] 
  • Purchase of minority shareholding [Section 236(2)]
  • Submission of report by company liquidator [Proviso to Section 281(1)(a)]

 

Under the provisions of Insolvency and Bankruptcy Code, 2016 - In case of Business Entities under Insolvency and Bankruptcy:

Insolvency and Bankruptcy Code, 2016 is the supporting element and one-stop solution which addresses all insolvencies in a time-bound manner and also in  economically viable setup. This law has significantly helped India in achieving the historic 30-spot jump in the ease of doing business rankings. IBC is helping in settling failed or bankrupt entities without causing irreparable damage to any stakeholder in the economy. This has potential to be game changer setting new rules for credit appetite and financial discipline. The Insolvency and Bankruptcy procedures are likely to restore confidence of banks, foreign investors, and associated companies in crisis mitigation mechanism related to business entities in the country.

 

The registered valuer has been defined at various places under IBC e.g.  Under Clause 2(1)(m) of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016; Under clause 2(1)(p) of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017; Under clause 2(1)(h) of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016. In all such regulations, the reference has been made to Companies Act, 2013 while defining registered valuer. Appointment of registered valuer has been prescribed in various regulations issued by IBBI from time to time. Some of these are:

 

  • Two registered valuers are required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 27 and 35 of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016].
  • One registered valuer is required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 26 and 34 of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017]
  • Two registered valuers are required to be appointed by liquidator to value the assets [Refer Regulation 34(2) & 35 of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016]  
  • In reference to voluntary liquidation, the registered valuer report [59 (3)(b)(ii) of the Insolvency and Bankruptcy Code, 2016] – This report is required before initiation of process of Voluntary Liquidation.

In case of two registered valuers, both are supposed to submit their separate independent report.

 

Under the SEBI (Real Estate Investment Trusts) Amendment Regulations, 2017

This is heart-warming development, SEBI has also accepted the concept of ‘Registered Valuer’ which has originated from Companies Act, 2013. SEBI has amended its all important SEBI (Real Estate Investment Trusts) Regulations in 2017 by way of amending definition of valuer in Regulation 2(1)(zz). 

 

Futuristic Areas of Valuation

SEBI and Public Listed Companies:: The amendment in SEBI (REIT) Regulation is an indication of pro-active thought about usefulness of ‘Registered Valuer. It is a signal that the profession of ‘Registered Valuer’ will be increasingly recognized by SEBI in reference to various instruments traded on Indian bourses and also in reference to corporate actions of listed public companies. 

 

FEMA and Foreign Investment:: Another such field is foreign investment in India. Corporate valuation is required to be carried out at the time of issuance of shares, transfer of shares, joint ventures, foreign collaborations, FCCB and many more. Presently, registered valuers are not eligible to carry out valuations under the provisions of FEMA. But the author is confident that registered valuers will be recognised to carry out valuation under FEMA (two-three years down the line) in relations to inbound as well as outbound foreign investments. 

 

Income Tax Act and Inadequate Consideration:: Under Income tax provisions, valuation report is required to assess instances of tax avoidance or shifting of tax liability by way of inadequate consideration or excess consideration. Rules in relation to Section 56(2) of the Income Tax Act prescribes the valuation methodology to calculate fair market value (FMV) and the professionals who are eligible to carry out valuation. Author is convinced that in foreseeable future, registered valuers will be allowed to carry out valuation under Income Tax Act also.   

 

Court Directed Valuations:: This has been seen that in oppression and mismanagement litigation, Court directs for third party valuation to resolve the matter. Litigating parties are expected to accept such valuations to buy out each other. As profession of registered valuer will gain acceptability, the NCLT and other courts are also expected to engage ‘registered valuer’ to carry out valuations.    

 

Conclusion

Event specific valuation opportunities are also available. Valuation is sought by stakeholders at the time of change of management; divestment of particular plant, division or brand; valuation of business assets for the purpose of insurance; valuation of assets offered as security for the purpose of strategic debt funding. As per latest trend, joint venture agreement; technology transfer agreement; share subscription agreement; share purchase agreement; shareholders inter-se agreement and many such agreements have specific clause insisting upon valuation to be carried out by registered valuer. These are exciting times for registered valuers. The only caveat is that they need to do their work diligently and without greed while maintaining highest standard of professionalism.

 

================================

 

 

DECLARATION

I, Ajay Garg S/o Sh BM Garg resident of House No. 970, Sector-21D, Faridabad, hereby declare that the article, “Professional Opportunities for Registered Valuers” has been written by me on the basis of legal facts and contents have not been copied from anywhere except legal provisions under various enactments. I further declare that this is my original work and is hereby submitted for publication in monthly e-newsletter of ICSI RVO. 


Date : 2020-06-13
PROFESSIONAL OPPORTUNITIES FOR REGISTERED VALUERS

These are exciting times. New profession is emerging in India. Companies Act, 2013 brought in many new opportunities. One such opportunity is – opportunity to be Registered Valuer. Registered valuer concept provides new set of focused professionals for valuation of the various assets and liabilities. This is critical step towards standardization. With this concept, a new profession known as “Registered Valuer” has emerged on the corporate scenario. This acronym “Registered Valuer” is likely to gain steam and prestige in foreseeable future. The initial scope assigned to Registered valuer is not very small. Companies Act, 2013, IBC (The Insolvency and Bankruptcy Code), 2016 and SEBI (REIT & IIT) Regulations, 2016 recognise registered valuer as sole valuer for the purpose of valuation. It is expected that high credentials and good work may lead to more recognitions under various provisions for valuation under FEMA, Income Tax, SEBI and other statutes. The concept of registered valuer has emerged from the provisions of section 247 under Companies Act, 2013. Initially experienced professionals are allowed to become registered valuer by way of completing 50 hours class room training followed by formal exam (in MCQ format). After 31.01.2019, only registered valuer (in exclusion to all other professionals) will be allowed to carry out valuation report for the corporate activities mentioned hereunder:

 

Under the provisions of Companies Act, 2013 - In case of Unlisted Companies:

  • Further Issue of Shares (other than Right Issue): This includes
  • Private Placement of Shares [Section 62(1)(c)];
  • Issue of Shares in Preferential basis [Section 62(1)(c)];
  • Issue of Share for consideration other than cash [Section 62(1)(c)] 
  • Issue of shares under a Scheme of Employee Stock Option under the provisions of [Section 62(1)(c)]
  • Non cash transaction involving directors [Section 192(2)]
  • Merger and Amalgamations [Section 230(2)]
  • Demergers [Section 230(2)]
  • Scheme of compromise or arrangement with members [Section 230(2)] 
  • Scheme of compromise or arrangement with creditors [Section 230(2)] 
  • Purchase of minority shareholding [Section 236(2)]
  • Submission of report by company liquidator [Proviso to Section 281(1)(a)]

 

Under the provisions of Insolvency and Bankruptcy Code, 2016 - In case of Business Entities under Insolvency and Bankruptcy:

Insolvency and Bankruptcy Code, 2016 is the supporting element and one-stop solution which addresses all insolvencies in a time-bound manner and also in  economically viable setup. This law has significantly helped India in achieving the historic 30-spot jump in the ease of doing business rankings. IBC is helping in settling failed or bankrupt entities without causing irreparable damage to any stakeholder in the economy. This has potential to be game changer setting new rules for credit appetite and financial discipline. The Insolvency and Bankruptcy procedures are likely to restore confidence of banks, foreign investors, and associated companies in crisis mitigation mechanism related to business entities in the country.

 

The registered valuer has been defined at various places under IBC e.g.  Under Clause 2(1)(m) of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016; Under clause 2(1)(p) of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017; Under clause 2(1)(h) of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016. In all such regulations, the reference has been made to Companies Act, 2013 while defining registered valuer. Appointment of registered valuer has been prescribed in various regulations issued by IBBI from time to time. Some of these are:

 

  • Two registered valuers are required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 27 and 35 of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016].
  • One registered valuer is required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 26 and 34 of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017]
  • Two registered valuers are required to be appointed by liquidator to value the assets [Refer Regulation 34(2) & 35 of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016]  
  • In reference to voluntary liquidation, the registered valuer report [59 (3)(b)(ii) of the Insolvency and Bankruptcy Code, 2016] – This report is required before initiation of process of Voluntary Liquidation.

In case of two registered valuers, both are supposed to submit their separate independent report.

 

Under the SEBI (Real Estate Investment Trusts) Amendment Regulations, 2017

This is heart-warming development, SEBI has also accepted the concept of ‘Registered Valuer’ which has originated from Companies Act, 2013. SEBI has amended its all important SEBI (Real Estate Investment Trusts) Regulations in 2017 by way of amending definition of valuer in Regulation 2(1)(zz). 

 

Futuristic Areas of Valuation

SEBI and Public Listed Companies:: The amendment in SEBI (REIT) Regulation is an indication of pro-active thought about usefulness of ‘Registered Valuer. It is a signal that the profession of ‘Registered Valuer’ will be increasingly recognized by SEBI in reference to various instruments traded on Indian bourses and also in reference to corporate actions of listed public companies. 

 

FEMA and Foreign Investment:: Another such field is foreign investment in India. Corporate valuation is required to be carried out at the time of issuance of shares, transfer of shares, joint ventures, foreign collaborations, FCCB and many more. Presently, registered valuers are not eligible to carry out valuations under the provisions of FEMA. But the author is confident that registered valuers will be recognised to carry out valuation under FEMA (two-three years down the line) in relations to inbound as well as outbound foreign investments. 

 

Income Tax Act and Inadequate Consideration:: Under Income tax provisions, valuation report is required to assess instances of tax avoidance or shifting of tax liability by way of inadequate consideration or excess consideration. Rules in relation to Section 56(2) of the Income Tax Act prescribes the valuation methodology to calculate fair market value (FMV) and the professionals who are eligible to carry out valuation. Author is convinced that in foreseeable future, registered valuers will be allowed to carry out valuation under Income Tax Act also.   

 

Court Directed Valuations:: This has been seen that in oppression and mismanagement litigation, Court directs for third party valuation to resolve the matter. Litigating parties are expected to accept such valuations to buy out each other. As profession of registered valuer will gain acceptability, the NCLT and other courts are also expected to engage ‘registered valuer’ to carry out valuations.    

 

Conclusion

Event specific valuation opportunities are also available. Valuation is sought by stakeholders at the time of change of management; divestment of particular plant, division or brand; valuation of business assets for the purpose of insurance; valuation of assets offered as security for the purpose of strategic debt funding. As per latest trend, joint venture agreement; technology transfer agreement; share subscription agreement; share purchase agreement; shareholders inter-se agreement and many such agreements have specific clause insisting upon valuation to be carried out by registered valuer. These are exciting times for registered valuers. The only caveat is that they need to do their work diligently and without greed while maintaining highest standard of professionalism.

 

================================

 

 

DECLARATION

I, Ajay Garg S/o Sh BM Garg resident of House No. 970, Sector-21D, Faridabad, hereby declare that the article, “Professional Opportunities for Registered Valuers” has been written by me on the basis of legal facts and contents have not been copied from anywhere except legal provisions under various enactments. I further declare that this is my original work and is hereby submitted for publication in monthly e-newsletter of ICSI RVO. 


Date : 2020-06-13
PROFESSIONAL OPPORTUNITIES FOR REGISTERED VALUERS

These are exciting times. New profession is emerging in India. Companies Act, 2013 brought in many new opportunities. One such opportunity is – opportunity to be Registered Valuer. Registered valuer concept provides new set of focused professionals for valuation of the various assets and liabilities. This is critical step towards standardization. With this concept, a new profession known as “Registered Valuer” has emerged on the corporate scenario. This acronym “Registered Valuer” is likely to gain steam and prestige in foreseeable future. The initial scope assigned to Registered valuer is not very small. Companies Act, 2013, IBC (The Insolvency and Bankruptcy Code), 2016 and SEBI (REIT & IIT) Regulations, 2016 recognise registered valuer as sole valuer for the purpose of valuation. It is expected that high credentials and good work may lead to more recognitions under various provisions for valuation under FEMA, Income Tax, SEBI and other statutes. The concept of registered valuer has emerged from the provisions of section 247 under Companies Act, 2013. Initially experienced professionals are allowed to become registered valuer by way of completing 50 hours class room training followed by formal exam (in MCQ format). After 31.01.2019, only registered valuer (in exclusion to all other professionals) will be allowed to carry out valuation report for the corporate activities mentioned hereunder:

 

Under the provisions of Companies Act, 2013 - In case of Unlisted Companies:

  • Further Issue of Shares (other than Right Issue): This includes
  • Private Placement of Shares [Section 62(1)(c)];
  • Issue of Shares in Preferential basis [Section 62(1)(c)];
  • Issue of Share for consideration other than cash [Section 62(1)(c)] 
  • Issue of shares under a Scheme of Employee Stock Option under the provisions of [Section 62(1)(c)]
  • Non cash transaction involving directors [Section 192(2)]
  • Merger and Amalgamations [Section 230(2)]
  • Demergers [Section 230(2)]
  • Scheme of compromise or arrangement with members [Section 230(2)] 
  • Scheme of compromise or arrangement with creditors [Section 230(2)] 
  • Purchase of minority shareholding [Section 236(2)]
  • Submission of report by company liquidator [Proviso to Section 281(1)(a)]

 

Under the provisions of Insolvency and Bankruptcy Code, 2016 - In case of Business Entities under Insolvency and Bankruptcy:

Insolvency and Bankruptcy Code, 2016 is the supporting element and one-stop solution which addresses all insolvencies in a time-bound manner and also in  economically viable setup. This law has significantly helped India in achieving the historic 30-spot jump in the ease of doing business rankings. IBC is helping in settling failed or bankrupt entities without causing irreparable damage to any stakeholder in the economy. This has potential to be game changer setting new rules for credit appetite and financial discipline. The Insolvency and Bankruptcy procedures are likely to restore confidence of banks, foreign investors, and associated companies in crisis mitigation mechanism related to business entities in the country.

 

The registered valuer has been defined at various places under IBC e.g.  Under Clause 2(1)(m) of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016; Under clause 2(1)(p) of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017; Under clause 2(1)(h) of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016. In all such regulations, the reference has been made to Companies Act, 2013 while defining registered valuer. Appointment of registered valuer has been prescribed in various regulations issued by IBBI from time to time. Some of these are:

 

  • Two registered valuers are required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 27 and 35 of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016].
  • One registered valuer is required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 26 and 34 of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017]
  • Two registered valuers are required to be appointed by liquidator to value the assets [Refer Regulation 34(2) & 35 of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016]  
  • In reference to voluntary liquidation, the registered valuer report [59 (3)(b)(ii) of the Insolvency and Bankruptcy Code, 2016] – This report is required before initiation of process of Voluntary Liquidation.

In case of two registered valuers, both are supposed to submit their separate independent report.

 

Under the SEBI (Real Estate Investment Trusts) Amendment Regulations, 2017

This is heart-warming development, SEBI has also accepted the concept of ‘Registered Valuer’ which has originated from Companies Act, 2013. SEBI has amended its all important SEBI (Real Estate Investment Trusts) Regulations in 2017 by way of amending definition of valuer in Regulation 2(1)(zz). 

 

Futuristic Areas of Valuation

SEBI and Public Listed Companies:: The amendment in SEBI (REIT) Regulation is an indication of pro-active thought about usefulness of ‘Registered Valuer. It is a signal that the profession of ‘Registered Valuer’ will be increasingly recognized by SEBI in reference to various instruments traded on Indian bourses and also in reference to corporate actions of listed public companies. 

 

FEMA and Foreign Investment:: Another such field is foreign investment in India. Corporate valuation is required to be carried out at the time of issuance of shares, transfer of shares, joint ventures, foreign collaborations, FCCB and many more. Presently, registered valuers are not eligible to carry out valuations under the provisions of FEMA. But the author is confident that registered valuers will be recognised to carry out valuation under FEMA (two-three years down the line) in relations to inbound as well as outbound foreign investments. 

 

Income Tax Act and Inadequate Consideration:: Under Income tax provisions, valuation report is required to assess instances of tax avoidance or shifting of tax liability by way of inadequate consideration or excess consideration. Rules in relation to Section 56(2) of the Income Tax Act prescribes the valuation methodology to calculate fair market value (FMV) and the professionals who are eligible to carry out valuation. Author is convinced that in foreseeable future, registered valuers will be allowed to carry out valuation under Income Tax Act also.   

 

Court Directed Valuations:: This has been seen that in oppression and mismanagement litigation, Court directs for third party valuation to resolve the matter. Litigating parties are expected to accept such valuations to buy out each other. As profession of registered valuer will gain acceptability, the NCLT and other courts are also expected to engage ‘registered valuer’ to carry out valuations.    

 

Conclusion

Event specific valuation opportunities are also available. Valuation is sought by stakeholders at the time of change of management; divestment of particular plant, division or brand; valuation of business assets for the purpose of insurance; valuation of assets offered as security for the purpose of strategic debt funding. As per latest trend, joint venture agreement; technology transfer agreement; share subscription agreement; share purchase agreement; shareholders inter-se agreement and many such agreements have specific clause insisting upon valuation to be carried out by registered valuer. These are exciting times for registered valuers. The only caveat is that they need to do their work diligently and without greed while maintaining highest standard of professionalism.

 

================================

 

 

DECLARATION

I, Ajay Garg S/o Sh BM Garg resident of House No. 970, Sector-21D, Faridabad, hereby declare that the article, “Professional Opportunities for Registered Valuers” has been written by me on the basis of legal facts and contents have not been copied from anywhere except legal provisions under various enactments. I further declare that this is my original work and is hereby submitted for publication in monthly e-newsletter of ICSI RVO. 


Date : 2020-06-13
PROFESSIONAL OPPORTUNITIES FOR REGISTERED VALUERS

These are exciting times. New profession is emerging in India. Companies Act, 2013 brought in many new opportunities. One such opportunity is – opportunity to be Registered Valuer. Registered valuer concept provides new set of focused professionals for valuation of the various assets and liabilities. This is critical step towards standardization. With this concept, a new profession known as “Registered Valuer” has emerged on the corporate scenario. This acronym “Registered Valuer” is likely to gain steam and prestige in foreseeable future. The initial scope assigned to Registered valuer is not very small. Companies Act, 2013, IBC (The Insolvency and Bankruptcy Code), 2016 and SEBI (REIT & IIT) Regulations, 2016 recognise registered valuer as sole valuer for the purpose of valuation. It is expected that high credentials and good work may lead to more recognitions under various provisions for valuation under FEMA, Income Tax, SEBI and other statutes. The concept of registered valuer has emerged from the provisions of section 247 under Companies Act, 2013. Initially experienced professionals are allowed to become registered valuer by way of completing 50 hours class room training followed by formal exam (in MCQ format). After 31.01.2019, only registered valuer (in exclusion to all other professionals) will be allowed to carry out valuation report for the corporate activities mentioned hereunder:

 

Under the provisions of Companies Act, 2013 - In case of Unlisted Companies:

  • Further Issue of Shares (other than Right Issue): This includes
  • Private Placement of Shares [Section 62(1)(c)];
  • Issue of Shares in Preferential basis [Section 62(1)(c)];
  • Issue of Share for consideration other than cash [Section 62(1)(c)] 
  • Issue of shares under a Scheme of Employee Stock Option under the provisions of [Section 62(1)(c)]
  • Non cash transaction involving directors [Section 192(2)]
  • Merger and Amalgamations [Section 230(2)]
  • Demergers [Section 230(2)]
  • Scheme of compromise or arrangement with members [Section 230(2)] 
  • Scheme of compromise or arrangement with creditors [Section 230(2)] 
  • Purchase of minority shareholding [Section 236(2)]
  • Submission of report by company liquidator [Proviso to Section 281(1)(a)]

 

Under the provisions of Insolvency and Bankruptcy Code, 2016 - In case of Business Entities under Insolvency and Bankruptcy:

Insolvency and Bankruptcy Code, 2016 is the supporting element and one-stop solution which addresses all insolvencies in a time-bound manner and also in  economically viable setup. This law has significantly helped India in achieving the historic 30-spot jump in the ease of doing business rankings. IBC is helping in settling failed or bankrupt entities without causing irreparable damage to any stakeholder in the economy. This has potential to be game changer setting new rules for credit appetite and financial discipline. The Insolvency and Bankruptcy procedures are likely to restore confidence of banks, foreign investors, and associated companies in crisis mitigation mechanism related to business entities in the country.

 

The registered valuer has been defined at various places under IBC e.g.  Under Clause 2(1)(m) of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016; Under clause 2(1)(p) of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017; Under clause 2(1)(h) of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016. In all such regulations, the reference has been made to Companies Act, 2013 while defining registered valuer. Appointment of registered valuer has been prescribed in various regulations issued by IBBI from time to time. Some of these are:

 

  • Two registered valuers are required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 27 and 35 of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016].
  • One registered valuer is required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 26 and 34 of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017]
  • Two registered valuers are required to be appointed by liquidator to value the assets [Refer Regulation 34(2) & 35 of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016]  
  • In reference to voluntary liquidation, the registered valuer report [59 (3)(b)(ii) of the Insolvency and Bankruptcy Code, 2016] – This report is required before initiation of process of Voluntary Liquidation.

In case of two registered valuers, both are supposed to submit their separate independent report.

 

Under the SEBI (Real Estate Investment Trusts) Amendment Regulations, 2017

This is heart-warming development, SEBI has also accepted the concept of ‘Registered Valuer’ which has originated from Companies Act, 2013. SEBI has amended its all important SEBI (Real Estate Investment Trusts) Regulations in 2017 by way of amending definition of valuer in Regulation 2(1)(zz). 

 

Futuristic Areas of Valuation

SEBI and Public Listed Companies:: The amendment in SEBI (REIT) Regulation is an indication of pro-active thought about usefulness of ‘Registered Valuer. It is a signal that the profession of ‘Registered Valuer’ will be increasingly recognized by SEBI in reference to various instruments traded on Indian bourses and also in reference to corporate actions of listed public companies. 

 

FEMA and Foreign Investment:: Another such field is foreign investment in India. Corporate valuation is required to be carried out at the time of issuance of shares, transfer of shares, joint ventures, foreign collaborations, FCCB and many more. Presently, registered valuers are not eligible to carry out valuations under the provisions of FEMA. But the author is confident that registered valuers will be recognised to carry out valuation under FEMA (two-three years down the line) in relations to inbound as well as outbound foreign investments. 

 

Income Tax Act and Inadequate Consideration:: Under Income tax provisions, valuation report is required to assess instances of tax avoidance or shifting of tax liability by way of inadequate consideration or excess consideration. Rules in relation to Section 56(2) of the Income Tax Act prescribes the valuation methodology to calculate fair market value (FMV) and the professionals who are eligible to carry out valuation. Author is convinced that in foreseeable future, registered valuers will be allowed to carry out valuation under Income Tax Act also.   

 

Court Directed Valuations:: This has been seen that in oppression and mismanagement litigation, Court directs for third party valuation to resolve the matter. Litigating parties are expected to accept such valuations to buy out each other. As profession of registered valuer will gain acceptability, the NCLT and other courts are also expected to engage ‘registered valuer’ to carry out valuations.    

 

Conclusion

Event specific valuation opportunities are also available. Valuation is sought by stakeholders at the time of change of management; divestment of particular plant, division or brand; valuation of business assets for the purpose of insurance; valuation of assets offered as security for the purpose of strategic debt funding. As per latest trend, joint venture agreement; technology transfer agreement; share subscription agreement; share purchase agreement; shareholders inter-se agreement and many such agreements have specific clause insisting upon valuation to be carried out by registered valuer. These are exciting times for registered valuers. The only caveat is that they need to do their work diligently and without greed while maintaining highest standard of professionalism.

 

================================

 

 

DECLARATION

I, Ajay Garg S/o Sh BM Garg resident of House No. 970, Sector-21D, Faridabad, hereby declare that the article, “Professional Opportunities for Registered Valuers” has been written by me on the basis of legal facts and contents have not been copied from anywhere except legal provisions under various enactments. I further declare that this is my original work and is hereby submitted for publication in monthly e-newsletter of ICSI RVO. 


Date : 2020-06-13
PROFESSIONAL OPPORTUNITIES FOR REGISTERED VALUERS

These are exciting times. New profession is emerging in India. Companies Act, 2013 brought in many new opportunities. One such opportunity is – opportunity to be Registered Valuer. Registered valuer concept provides new set of focused professionals for valuation of the various assets and liabilities. This is critical step towards standardization. With this concept, a new profession known as “Registered Valuer” has emerged on the corporate scenario. This acronym “Registered Valuer” is likely to gain steam and prestige in foreseeable future. The initial scope assigned to Registered valuer is not very small. Companies Act, 2013, IBC (The Insolvency and Bankruptcy Code), 2016 and SEBI (REIT & IIT) Regulations, 2016 recognise registered valuer as sole valuer for the purpose of valuation. It is expected that high credentials and good work may lead to more recognitions under various provisions for valuation under FEMA, Income Tax, SEBI and other statutes. The concept of registered valuer has emerged from the provisions of section 247 under Companies Act, 2013. Initially experienced professionals are allowed to become registered valuer by way of completing 50 hours class room training followed by formal exam (in MCQ format). After 31.01.2019, only registered valuer (in exclusion to all other professionals) will be allowed to carry out valuation report for the corporate activities mentioned hereunder:

 

Under the provisions of Companies Act, 2013 - In case of Unlisted Companies:

  • Further Issue of Shares (other than Right Issue): This includes
  • Private Placement of Shares [Section 62(1)(c)];
  • Issue of Shares in Preferential basis [Section 62(1)(c)];
  • Issue of Share for consideration other than cash [Section 62(1)(c)] 
  • Issue of shares under a Scheme of Employee Stock Option under the provisions of [Section 62(1)(c)]
  • Non cash transaction involving directors [Section 192(2)]
  • Merger and Amalgamations [Section 230(2)]
  • Demergers [Section 230(2)]
  • Scheme of compromise or arrangement with members [Section 230(2)] 
  • Scheme of compromise or arrangement with creditors [Section 230(2)] 
  • Purchase of minority shareholding [Section 236(2)]
  • Submission of report by company liquidator [Proviso to Section 281(1)(a)]

 

Under the provisions of Insolvency and Bankruptcy Code, 2016 - In case of Business Entities under Insolvency and Bankruptcy:

Insolvency and Bankruptcy Code, 2016 is the supporting element and one-stop solution which addresses all insolvencies in a time-bound manner and also in  economically viable setup. This law has significantly helped India in achieving the historic 30-spot jump in the ease of doing business rankings. IBC is helping in settling failed or bankrupt entities without causing irreparable damage to any stakeholder in the economy. This has potential to be game changer setting new rules for credit appetite and financial discipline. The Insolvency and Bankruptcy procedures are likely to restore confidence of banks, foreign investors, and associated companies in crisis mitigation mechanism related to business entities in the country.

 

The registered valuer has been defined at various places under IBC e.g.  Under Clause 2(1)(m) of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016; Under clause 2(1)(p) of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017; Under clause 2(1)(h) of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016. In all such regulations, the reference has been made to Companies Act, 2013 while defining registered valuer. Appointment of registered valuer has been prescribed in various regulations issued by IBBI from time to time. Some of these are:

 

  • Two registered valuers are required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 27 and 35 of The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016].
  • One registered valuer is required to be appointed by resolution professional to determine fair value and liquidation value [Refer Regulation 26 and 34 of The Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for  Corporate Persons) Regulations, 2017]
  • Two registered valuers are required to be appointed by liquidator to value the assets [Refer Regulation 34(2) & 35 of The Insolvency and Bankruptcy Board of India (Liquidation Process)  Regulations, 2016]  
  • In reference to voluntary liquidation, the registered valuer report [59 (3)(b)(ii) of the Insolvency and Bankruptcy Code, 2016] – This report is required before initiation of process of Voluntary Liquidation.

In case of two registered valuers, both are supposed to submit their separate independent report.

 

Under the SEBI (Real Estate Investment Trusts) Amendment Regulations, 2017

This is heart-warming development, SEBI has also accepted the concept of ‘Registered Valuer’ which has originated from Companies Act, 2013. SEBI has amended its all important SEBI (Real Estate Investment Trusts) Regulations in 2017 by way of amending definition of valuer in Regulation 2(1)(zz). 

 

Futuristic Areas of Valuation

SEBI and Public Listed Companies:: The amendment in SEBI (REIT) Regulation is an indication of pro-active thought about usefulness of ‘Registered Valuer. It is a signal that the profession of ‘Registered Valuer’ will be increasingly recognized by SEBI in reference to various instruments traded on Indian bourses and also in reference to corporate actions of listed public companies. 

 

FEMA and Foreign Investment:: Another such field is foreign investment in India. Corporate valuation is required to be carried out at the time of issuance of shares, transfer of shares, joint ventures, foreign collaborations, FCCB and many more. Presently, registered valuers are not eligible to carry out valuations under the provisions of FEMA. But the author is confident that registered valuers will be recognised to carry out valuation under FEMA (two-three years down the line) in relations to inbound as well as outbound foreign investments. 

 

Income Tax Act and Inadequate Consideration:: Under Income tax provisions, valuation report is required to assess instances of tax avoidance or shifting of tax liability by way of inadequate consideration or excess consideration. Rules in relation to Section 56(2) of the Income Tax Act prescribes the valuation methodology to calculate fair market value (FMV) and the professionals who are eligible to carry out valuation. Author is convinced that in foreseeable future, registered valuers will be allowed to carry out valuation under Income Tax Act also.   

 

Court Directed Valuations:: This has been seen that in oppression and mismanagement litigation, Court directs for third party valuation to resolve the matter. Litigating parties are expected to accept such valuations to buy out each other. As profession of registered valuer will gain acceptability, the NCLT and other courts are also expected to engage ‘registered valuer’ to carry out valuations.    

 

Conclusion

Event specific valuation opportunities are also available. Valuation is sought by stakeholders at the time of change of management; divestment of particular plant, division or brand; valuation of business assets for the purpose of insurance; valuation of assets offered as security for the purpose of strategic debt funding. As per latest trend, joint venture agreement; technology transfer agreement; share subscription agreement; share purchase agreement; shareholders inter-se agreement and many such agreements have specific clause insisting upon valuation to be carried out by registered valuer. These are exciting times for registered valuers. The only caveat is that they need to do their work diligently and without greed while maintaining highest standard of professionalism.

 

================================

 

 

DECLARATION

I, Ajay Garg S/o Sh BM Garg resident of House No. 970, Sector-21D, Faridabad, hereby declare that the article, “Professional Opportunities for Registered Valuers” has been written by me on the basis of legal facts and contents have not been copied from anywhere except legal provisions under various enactments. I further declare that this is my original work and is hereby submitted for publication in monthly e-newsletter of ICSI RVO. 


Date : 2020-06-13