Valuations Professionals Bill

FE reports

A concept paper (a copy of which is with FE) on a Valuation Professionals Bill, floated by the company affairs ministry, proposes setting up a council that would certify a “valuation professional”, besides issue valuation standards, set education guidelines, recognise institutes and their course content, and frame ethical codes.

The concept paper defines a “valuation professional” as one who individually, or in partnership, or in limited liability partnership with other valuation professionals, offers services like valuation of business, shares, debt, assets, goodwill, brands and intellectual property. At a time when domestic M&As are on a rise, the concept paper seeks to prohibit companies, both Indian and foreign, from certifying valuations.