UNDERSTANDING RIGHTS AND RESPONSIBILITIES OF VALUERS IN THE INDIAN REGULATORY FRAMEWORK

In India, the role of valuers is crucial in various sectors, including real estate, finance, and infrastructure development. Valuers play a significant role in determining the fair market value of assets, which is essential for decision-making by investors, lenders, and other stakeholders. However, to ensure transparency, fairness, and accountability, valuers must adhere to specific rights and responsibilities outlined within the Indian regulatory framework.

Regulatory Bodies Governing Valuation Practices

1. Insolvency and Bankruptcy Board of India (IBBI): The IBBI regulates the valuation profession under the Insolvency and Bankruptcy Code (IBC). Valuers operating in the insolvency resolution process must comply with the IBBI’s valuation regulations and guidelines.
2. Registered Valuer Organisations (RVOs): The RVOs like CEV IAF and others play a significant role in regulating the valuation profession through its Valuation Standards. These standards provide guidance on the valuation process, methodologies, and reporting requirements for various types of assets.
3. Securities and Exchange Board of India (SEBI): SEBI regulates valuers involved in securities markets, such as valuations for public offerings, mergers and acquisitions, and other corporate actions. Valuers must comply with SEBI regulations and guidelines to ensure integrity and transparency in such transactions.

Rights of Valuers

1. Independence: Valuers have the right to independence in their valuation assessments. They should not be influenced by any external factors that could compromise their objectivity and impartiality.
2. Access to Information: Valuers have the right to access relevant information necessary for conducting valuations accurately. This includes financial statements, market data, and other pertinent documents.
3. Professional Development: Valuers have the right to continuous professional development to enhance their skills and knowledge in valuation practices. This ensures that they stay updated with the latest industry standards and methodologies.

Responsibilities of Valuers

1. Ethical Conduct: Valuers have a responsibility to adhere to high ethical standards in their professional conduct. This includes honesty, integrity, and confidentiality in handling sensitive information.
2. Competence: Valuers are responsible for possessing the necessary competence and expertise to perform valuations effectively. They should apply appropriate valuation methodologies and techniques relevant to the asset being valued.
3. Compliance: Valuers must comply with all relevant laws, regulations, and standards governing the valuation profession. This ensures legality and legitimacy in their valuation assessments.
4. Transparency: Valuers have a responsibility to maintain transparency in their valuation process and reporting. They should clearly communicate the basis of their valuation, assumptions made, and any limitations or uncertainties associated with the valuation.

In India, valuers play a critical role in various sectors, and their rights and responsibilities are outlined within the regulatory framework to ensure professionalism, integrity, and accountability. By adhering to ethical standards, maintaining competence, and complying with regulations, valuers contribute to fostering trust and confidence in the valuation profession, ultimately benefiting the economy and society as a whole.