SEBI recognizes RICS professionals as valuers for REIT assets

16 January 2017: The Securities and Exchange Board of India (SEBI) has issuedamendments 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, SEBIhas recognized all RICS certified professionals as valuers for technical assetvaluation. SEBI has set forth a condition that RICS professionals  should have a minimum work experience of fiveyears in relevant areas of valuation practice and in relation to relevant assetvalue and categories. 

The notification hasbrought partial parity between protocols followed by the Indian BanksAssociation (IBA) in valuation of fixed assets and SEBI’s proposal for valuationof REIT assets. As per the amended regulations, a person competent to performtechnical valuation would require a prior professional experience of five yearsin valuation of assets of a similar category, apart from the membership of atleast one Valuation Professional Organisation (VPO), amongst which RICS islisted as one such organization. 

“RICS sets ethical andprofessional standards globally. We create knowledge that can be shared aroundthe world and advise policy makers in society’s interest. We are glad that SEBIhas recognized RICS certified professionals  as valuers for REIT assets. This strengthensour position as the world’s leading professional qualification and standardssetting bodyfor 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, bestpractice guidance and related commentary for all RICS members undertaking assetvaluations.The Red Book is issued by RICS as part of its commitment to promoteand support high standards in valuation delivery worldwide. The publicationdetails mandatory practices for RICS members undertaking valuation services. Italso offers a useful reference resource for valuation users and otherstakeholders. 

RICS has been at theforefront of  developing and embeddinginternationalstandards which are recognised throughout the world. These high level standardssit across the built environment profession, providing a common framework forall practitioners. Since 2013, RICS has been working with more than 100 otherprofessional and standards-setting organisations throughout the world todevelop high-level international standards. Collectively, these organisationsown the standards such as International Ethics Standards, InternationalProperty Measurement Standards: Residential and International PropertyMeasurement Standards: Office Buildings which are implemented by eachorganisation through their own professional guidelines.

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