The necessity for Valuation has been evident since the dawn of civilization. Initially, in India, where Valuation hasn't been officially recognized as a profession by any legislation, there has been a notable absence of efforts towards transparency, uniformity, and standardization in valuation practices. Consequently, stakeholders have begun to dictate rules according to their preferences, exacerbating the lack of consistency in Valuation standards.

Initially, Valuation regulations were established solely under the Wealth Tax Act, primarily focusing on wealth and income tax assessments. In this regard, self-regulatory organizations like IOV play a crucial role in ensuring the sustainability of the valuation ecosystem. These standards persisted until 2018, serving as the de facto benchmarks for valuation practices.  Recognizing the deficiencies and challenges within this framework, new valuation regulations were introduced under the Company Act in 2018. These regulations had the potential to establish much-needed uniformity and credibility in valuation practices.

However, for various reasons, these new regulations failed to garner widespread adoption among stakeholders. Instead of progressing towards improvement, the situation has deteriorated over time. Stakeholders are formulating ad-hoc valuation rules according to their convenience, resulting in arbitrary and inconsistent valuation outcomes.

These issues need to be addressed urgently to ensure consistency, authenticity, reliability etc. in valuation reports with a responsible ecosystem to ensure stronger economic growth of India. This is important to enhance credibility, recognition & acceptability of the profession not only locally but also globally.