This document provides an overview of valuers and the valuation profession in India. It discusses how the profession was previously unregulated but the government passed new laws in 2017 to regulate valuers. The Insolvency and Bankruptcy Board of India (IBBI) was tasked with creating rules for valuers and establishing Registered Valuer Organizations (RVOs) to register and monitor valuers. Valuers must now have certain qualifications, complete training programs, pass exams, and obtain certification numbers from the IBBI to legally practice valuations. The document outlines regulations for different types of valuations and asset classes, continuing education requirements, monitoring of valuers, and expectations for the future of the profession as the regulatory framework

1. Valuers in India
SK AGRAWAL

2. What is Valuation
 An OPINION, by an expert, about an asset.
 Asset
 Land
 Building
 Machines
 Money
 Jewellery / Diamonds.
 In Tangible like brands, Intellectual Property
 And more.
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3. A close look
 Diamond – social desirability
 Arts – Unique asset.
 Land – just 5 tract of land at a site.
 IP – patents ?
 Brands.
 One machine in the country?
Can these be valued?
How to do it?
Legal mandates on these and more.
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4. History
 There are records that are over 100 years old for land valuation.
 Diamonds / pearls – are still valued the old way.
 This was un regulated.
 No legal mandate
 Valuers were not penalised for a wrong valuation.
 Was considered a reason of bad debts.
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A farm property was purchased at Rs 6 lakh
per acre. The conveyance deed was done at Rs
40 lakh per acre.
It was valued at Rs 40 lakh per acre. Valuer
did not go there to check.
Bank sanctioned a loan of Rs 20 lakh per acre.
The company did not survive.
Promoters made their “money”

5. Why Valuation is needed 5
Merger/
Acquisition
s/
Demerger
IPO/Issue
of
Securitie
s
Preferential /
QIP / IPP
Issue
Conversion
of
Securities
Takeover
Capital
Reducti
on
Buy-back ESOP
IPR
Valuations
Tangibles
/
Intangibl
es
Other
Corporate
Restructuri
ng
Financi
ng
Needs
Ind AS
Compani
es Act /
NCLT
Variou
s
Court
s
Arbitration
/
Mediation
SEBI IBC
RBI / FEMA Income Tax SARFAESI
Equity
Resear
ch
Dispute /
Litigation
Resolutio
ns
Dissolution

6. Government decides to regulate valuers 6
Applicable
Laws
/
Rules
Section 247 of Companies Act, 2013
(effective from 18-October-2017)
Companies (Registered Valuers and Valuation) Rules, 2017
(effective from 18-Oct-2017)
Valuation Standards
(Yet to be announced)

7. IBBI was given the task …..
 IBBI – took the task to form rules and other policies
 They developed the various sections etc of valuers.
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IBBI
RVO
VALUERS
Policy, Monitoring, Governance
Classes, Manage, Update
Do Valuation

8. More Rules
 Minimum Qualifications
 Engineer with 5 year experience.
 Master of Valuation
 Apply to RVO
 They check and verify all qualifications
 Get a 50 hours mandator course.
 Appear in the IBBI Exam
 100 questions in 120 mins
 Multiple Choice Questions
 +1 /-0.25 marks
 PC based.
 Can appear as many times.
 Fill Form A through RVO
 Get the IBBI number …. IBBI/RV/04/2020/12345
 Do a COP – Certificate of Practice.
START PRACTICING VALUATION
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9. Important Acts
 Companies Act 2013 / 2016
 Section 247
 Valuers Rules 2017
There are other acts rules that will be used,
Income Tax . Companies Act, Law of contracts, Leasing and more.
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10. Three Specialist Segments
 Land & Buildings
 Land, Buildings
 Agricultural Land,
 Shopping malls, Factories,
 Plant & Machinery
 All plant, Cars, AC, laptops
 ETP, Ships, Mobile towers
 Financial & Securities
 Intangible assets.
 Share prices
 Loans & liabilities
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STRICT RULES
ONE VALUER
CANNOT VALUE
FOR OTHER

11. Market Size
 66% work is of L&B
 Smaller towns is also possible.
 Variety is low.
 Legal title is important.
 22 % work to F&S
 Mainly large towns
 Variety is low.
 Intangible assets are not easy
 12% P&M
 Industrial Towns and locations
 Large variety
 Not much legal issues
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There is NOT much work as of now with the valuers
Several reasons.
Estimated requirement of 4 lakh valuers.
Present there are approx. 3900 only
(31-Mar-2021)

12. Fees of Valuation
 Rs 500/- for a small plot of land.
 Rs 25 lakh – for a large factory.
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13. Important Points
 Has the valuer – seen the asset?
 Has the valuer verified the asset?
 Has the valuer done the valuation without
 Pressure
 Bribes
 Logic
 No Conflict of interest.
 Has the valuer kept the interest of country / society above his interest.
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14. Upgrades
 Every year – there will be a 16 point
CONTINUED EDUCATION PROGRAM.
 RVO organize there.
 Not completion will lead to cancel of COP === No valuation can be done.
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15. Monitoring
 RVO’s will be
 Issuing a VRN for every report.
 Six monthly reports to be filed.
 Annual returns to be filed.
 RVO Can
 Ask you for the detailed report
 Can do an inspection of your records
 Can cancel your COP
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16. This is so far……
……. The new regulation
 IBBI is a temporary regulator
 Final regulator with a new Act will be formed.
 This profession has to be treated at par with CA /CS others.
The entry to Valuer profession will change.
Transition
IBBI cleared valuer – automatic transfer.
5 Year experience, have to do a 400 hour course + exam.
Universities to run a full Master of Valuer program of 4 year.
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17. What to Expect
 Will take several years to establish oneself.
 Main business is from
 Banks
 Company Law
 Insurance
 Data may be incomplete.
 Have to check the level of error.
 Customer demands
 Speed of valuation – do it in one day.
 Will hint at a value
 Payment delays are frequent.
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However what is exciting
• New industry
• New learning
• New processes

18. Welcome to the Valuer Profession
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SK Agrawal; ska@agrawalnassociates.com