In the present financial and corporate environment, valuation constitutes an important function for mergers, acquisitions, fundraising, insolvency proceedings, and statutory compliance. Businesses, investors, and regulators rely upon credible valuation reports for making informed decisions. Within this domain, certified valuers and IBBI-registered valuers constitute two distinct categories of professionals, each serving a separate purpose. Understanding the difference between them is essential for selecting the right valuation approach and ensuring adherence to applicable regulations and laws.
Valuation is the determination of the economic worth of a business, asset, or investment. It is central to numerous corporate transactions, dispute resolutions, and financial reporting obligations. Professional valuation is undertaken by experts working in a valuation firm or independently, providing specialised valuation services across industries.
In regulated transactions, the requirement for credible valuation is more pronounced, as only qualified professionals—such as registered valuers—are authorised to issue reports accepted by statutory bodies. In commercial or purely advisory matters, entities may also appoint certified valuers who hold recognised credentials from professional institutions.
Certified valuers are individuals who have obtained a certified valuation credential from an accredited institution or industry body. Such certification is generally awarded after completion of structured training programs and passing of examinations. Certified valuers often have academic qualifications in finance, accounting, economics, or engineering, together with practical experience in valuation assignments.
● Corporate advisory valuations and many more such assignments
● Transaction-related valuations for mergers and acquisitions
● Start-up and fundraising valuations
● Valuation for litigation and dispute resolution
● Real estate or plant & machinery valuations (non-statutory)
Although certified valuers deliver high-quality valuation advisory, their reports are not always recognised for regulatory purposes in India unless they also possess IBBI registration.
IBBI-registered valuers are recognised under the Companies (Registered Valuers and Valuation) Rules, 2017, and regulated by the Insolvency and Bankruptcy Board of India (IBBI). They must fulfill eligibility requirements, complete a 50-hour valuation program, pass the IBBI examination, and follow continuing professional education norms.
● Insolvency and Bankruptcy Code, 2016
● Companies Act, 2013
● SEBI Regulations for listed companies
● FEMA guidelines governing cross-border transactions
Their valuation reports possess statutory validity and are accepted before courts, regulators, and other authorities.
● Certified valuers: “Certified valuers: Recognised by academic or industry bodies but not by statute.
● IBBI registered valuers: Recognised under statutory regulations with the power to conduct valuations for legal purposes.
● Certified valuers: Used for advisory and commercial assignments.
● IBBI registered valuers: Engaged where transactions require compliance under Indian laws.
● Certified valuers: Criteria vary across institutions, often industry-specific.
● IBBI registered valuers: Prescribed training and examination as per IBBI.
● Certified valuers: Limited oversight from the certifying authority.
● IBBI-registered valuers: Continuous supervision and code of conduct enforced by IBBI.
Many established valuation firms employ both certified valuers and IBBI-registered valuers to serve varied client requirements. For example, a restructuring assignment may require an IBBI-compliant valuation for statutory filing along with a separate advisory valuation for management’s internal use.
Merchant bankers, particularly a Category 1 merchant bank, often work jointly with valuation experts during IPOs, rights issues, and takeover offers. In such engagements, the x` ensures statutory compliance, while the certified valuer adds strategic assessment and negotiation support.
The choice of valuer should be guided by the assignment’s objective:
● For regulatory compliance under the Companies Act, IBC, SEBI, or FEMA, an IBBI-registered valuer is compulsory.
● For advisory purposes, including investment planning or negotiations, a certified valuer with sector-specific expertise is suitable.
In many complex transactions, both categories are engaged together to combine legal compliance with analytical depth.
Regardless of designation, the credibility of any valuation depends upon integrity, technical competence, and adherence to recognised valuation standards. A well-established valuation firm will ensure that its certified valuers and IBBI-registered valuers undertake continuous skill development to keep pace with changes in regulations and the market environment.
Both certified valuers and IBBI-registered valuers have distinct but complementary roles in the valuation framework. Certified valuers are valued for adaptability and commercial insight, while IBBI-registered valuers are indispensable where statutory compliance is necessary.
Resurgent India Limited, a SEBI-registered Category 1 merchant bank, provides comprehensive valuation advisory through experienced certified valuers and IBBI-registered valuers. As a trusted valuation firm, it delivers accurate and compliant valuation services aligned with both the regulatory and strategic requirements of clients.
