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ROLES AND RESPONSIBILITIES OF REGISTERED VALUERS UNDER THE 2017 RULES

ROLES AND RESPONSIBILITIES OF REGISTERED VALUERS UNDER THE 2017 RULES

Roles and Responsibilities of Registered Valuers under the 2017 Rules

  1. Valuation Standards Compliance: Registered valuers in India are obligated to adhere to the valuation standards set forth by the Insolvency and Bankruptcy Board of India (IBBI) under the Companies (Registered Valuers and Valuation) Rules, 2017. These standards ensure consistency, accuracy, and transparency in valuation practices.
  2. Independent and Impartial Assessment: Valuers must conduct their assessments independently and impartially, without any bias or influence. This ensures the integrity of the valuation process and maintains trust in the valuation profession.
  3. Professional Competence: Registered valuers are required to possess the necessary professional competence and qualifications to perform valuations effectively. They must stay updated with evolving valuation methodologies, regulations, and market trends.
  4. Disclosure of Conflicts of Interest: It is imperative for valuers to disclose any conflicts of interest that may compromise their objectivity or independence in the valuation process. Transparency in disclosing such conflicts maintains the credibility of the valuation report.
  5. Due Diligence: Valuers must conduct thorough due diligence when assessing the assets or properties under valuation. This involves gathering relevant information, analyzing market data, and verifying the authenticity of the data provided.
  6. Valuation Report Accuracy: Registered valuers are responsible for preparing accurate and reliable valuation reports. These reports must clearly state the valuation methodology employed, assumptions made, and the rationale behind the valuation conclusions.
  7. Compliance with Legal and Regulatory Requirements: Valuers must ensure that their valuation practices comply with all applicable legal and regulatory requirements. This includes adherence to the guidelines prescribed by regulatory bodies such as IBBI and the Securities and Exchange Board of India (SEBI).
  8. Client Confidentiality: Valuers are obligated to maintain client confidentiality and safeguard sensitive information obtained during the valuation process. This confidentiality extends to all aspects of the valuation engagement, including data, discussions, and the final valuation report.
  9. Continuous Professional Development: Valuers should engage in continuous professional development activities to enhance their skills, knowledge, and expertise in valuation. This may include attending training programs, seminars, and obtaining relevant certifications.
  10. Ethical Conduct: Registered valuers are expected to uphold high ethical standards in their professional conduct. This involves honesty, integrity, and fairness in all dealings with clients, stakeholders, and regulatory authorities.
  11. Responsibility towards Stakeholders: Valuers have a responsibility to communicate effectively with all stakeholders involved in the valuation process. This includes providing clear explanations of the valuation methodology, assumptions, and outcomes to facilitate informed decision-making.
  12. Quality Assurance: Valuers should implement quality assurance measures to ensure the accuracy and reliability of their valuation reports. This may involve peer reviews, internal audits, and adherence to best practices in valuation.

Adhering to these roles and responsibilities is essential for registered valuers to uphold the integrity and credibility of the valuation profession in India.

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