ET had reported on September 7 that the government’s request for proposal (RFP) to appoint an asset valuer for IDBI Bank had made it mandatory for valuers to be registered with the Insolvency and Bankruptcy Board of India (IBBI). It had also set a turnover threshold whereby the registered valuer entities should have posted annual turnover of ₹5 crore a year for three consecutive years to be eligible to apply for the assignment.
The report had said that many of the big accounting firms had conducted valuations for banking mergers through their accounting arms and had only recently registered with IBBI. Hence, they would fail to meet turnover thresholds or have the relevant credentials for the assignment.
This would have narrowed the list of possible contenders to carry out the IDBI Bank valuation exercise to only a handful of small boutique firms.
A Department of Investment and Public Asset Management note said Friday that the government has now waived the requirement of mandatory IBBI registration in the asset-valuer appointment. Entities registered with the Institute of Chartered Accountants of India such as accounting firms can now apply for the assignment.