JOIN USA distinct valuation discipline is emerging in India that needs to be taught properly with a structured knowledge input and develop its own professional code of conduct and standards to achieve a certain level of proficiency. Therefore, it is necessary to have standards pertaining to the International Valuation Standards (IVS) and International Financial Reporting Systems (IFRS) to measure quality, according to Jitesh Khosla, OSD, Indian Institute of Corporate Affairs and Formerly Joint Secretary, Ministry of Corporate Affairs.
He was speaking at a national Conference on ‘Valuations: The Emerging Road Map for India’ organised by Royal Institution of Chartered Surveyors (RICS) and Confederation of Indian Industries (CII).
The conference highlighted the need to develop effective valuation standards and build a world class valuation profession in India.
Sachin Sandhir, Managing Director & County Head, RICS said, “This conference has been an endeavour to spread awareness on what’s happening in valuations across the globe and also ascertain imperatives for the country.”
Speaking on the occasion, Anshuman Magazine, Past Chairman, CII National Committee on Real Estate & Housing and CMD, CB Richard Ellis South Asia Private Ltd said, “In a globalised economy, valuations form the backbone that help determine where to put in money and make investments. It is necessary to make valuation practices more robust to instil investor confidence in the system which will drive capital investments to India.”
He pointed out that professional valuations are vital to a healthy property market and a stable economy, forming the basis of performance analysis, financing decisions, transactional or development advice, dispute resolution, taxation and various statutory applications. The recent turbulence in global financial and property markets has turned the spotlight on valuers, valuation standards and methodology. This warrants efforts to be made to encourage the harmonisation of standards and valuation qualifications across India.
In an increasingly demanding market, it is essential that valuations are presented to clients in a clear and unambiguous manner, thereby instilling trust and confidence. Robust practice standards form the basis of accurate and consistent valuations.
While the need for a uniform valuation standard has been increasing felt by key stakeholders, up until now, there has been none available for adoption by the industry, he said.
An improved regulatory framework for valuation will raise professional standards, improve confidence of investors and help secure the accurate valuations that underpin most economic activity. Furthermore, all members involved in the valuation of commercial and residential property and specialist areas will have their competence monitored on a continuing basis to satisfy clients, Magazine noted. A start has already been made in this direction with the RICS Red Book.
The book provides an implementation or practice framework for the application of IVS globally, ensuring that valuers follow consistent methodologies throughout the world, has now been launched in the country.
Valuations standards prescribed in ‘RICS Red Book’ are considered as the Gold Standards for property valuation worldwide, he said.