ICAI to Establish Section 8 Company for Mediation and Arbitration

The Institute of Chartered Accountants of India (ICAI) is setting up a Section 8 company focused on mediation and arbitration. This initiative, under Law Ministry directives, aims to complement existing efforts in insolvency resolution and valuation standards development. The ICAI has previously established five other Section 8 companies.

The Institute of Chartered Accountants of India (ICAI) is poised to establish a Section 8 company dedicated to mediation and arbitration, revealed President Ranjeet Kumar Agarwal on Friday.

Section 8 companies focus on non-profit activities, and to date, ICAI has launched five such entities. Speaking at the inaugural session of 'RESOLVE-2024: An International Convention on Insolvency Resolution & Valuation' held in New Delhi, Agarwal stated that under the Law Ministry's directives, the new company would significantly amplify efforts in mediation and arbitration.

Additionally, Agarwal highlighted that the Insolvency and Bankruptcy Board of India (IBBI) has solicited ICAI's assistance in formulating valuation standards for asset classes 'Land & Building' and 'Plant & Machinery'. These efforts are aligned with the valuation standards ICAI had previously developed for 'Securities or Financial Assets'. Both the Insolvency & Valuation Standards Board of ICAI and ICAI RVO have developed these new standards and submitted them to the IBBI for review.

(With inputs from agencies.)