~ SEBI recognizes RICS certified professionals as competent professionals for valuation of REIT assets
Mumbai, 11 January 2017: The Securities and Exchange Board of India (SEBI) has issued amendments to the Real Estate Investment Trusts (REIT) regulations of 2014, which now recognizes RICS certified professionals specializing in valuation of fixed assets as competent professionals to perform valuation of REIT assets. RICS (Royal Institution of Chartered Surveyors) is a global professional body for qualifications and standards in land, property, construction and associated environment issues.
In the notification, SEBI has recognized all RICS certified professionals as valuers for technical asset valuation. SEBI has set forth a condition that RICS professionals should have a minimum work experience of five years in relevant areas of valuation practice and in relation to relevant asset value and categories.
The notification has brought partial parity between protocols followed by the Indian Banks Association (IBA) in valuation of fixed assets and SEBI’s proposal for valuation of REIT assets. As per the amended regulations, a person competent to perform technical valuation would require a prior professional experience of five years in valuation of assets of a similar category, apart from the membership of at least one Valuation Professional Organisation (VPO), amongst which RICS is listed as one such organization.
“RICS sets ethical and professional standards globally. We create knowledge that can be shared around the world and advise policy makers in society’s interest. We are glad that SEBI has recognized RICS certified professionals as valuers for REIT assets. This strengthens our position as the world’s leading professional qualification and standards setting body for land, property and construction sectors” said Sachin Sandhir, Global Managing Director- Emerging Business, RICS.
RICS Valuation – Professional Standards known as the ‘Red Book’ contains mandatory rules, best practice guidance and related commentary for all RICS members undertaking asset valuations. The Red Book is issued by RICS as part of its commitment to promote and support high standards in valuation delivery worldwide. The publication details mandatory practices for RICS members undertaking valuation services. It also offers a useful reference resource for valuation users and other stakeholders.
RICS has been at the forefront of developing and embedding international standards which are recognised throughout the world. These high level standards sit across the built environment profession, providing a common framework for all practitioners. Since 2013, RICS has been working with more than 100 other professional and standards-setting organisations throughout the world to develop high-level international standards. Collectively, these organisations own the standards such as International Ethics Standards, International Property Measurement Standards: Residential and International Property Measurement Standards: Office Buildings which are implemented by each organisation through their own professional guidelines.