ICAI to set up a Section 8 company for mediation and arbitration

On Friday, Ranjeet Kumar Agarwal, President of the Institute of Chartered Accountants of India (ICAI), announced a plan to establish a Section 8 company dedicated to mediation and arbitration activities. Section 8 companies are non-profit entities, and ICAI has already established five such companies.

During the inaugural session of ‘RESOLVE-2024: An International Convention on Insolvency Resolution and Valuation’ in the national capital, Agarwal mentioned that the institute is setting up this Section 8 company under the guidance of the Law Ministry, specifically for mediation and arbitration.

Further, he stated that the Insolvency and Bankruptcy Board of India (IBBI) has requested that ICAI assist in developing valuation standards for the asset classes ‘Land & Building’ and ‘Plant & Machinery’, similar to the standards it prepared for ‘Securities or Financial Assets’.

The Insolvency and Valuation Standards Board of ICAI, in collaboration with ICAI RVO, has developed these valuation standards, which have been submitted to the IBBI for review. ICAI ARF, XBRL India, IIIPI, ICAI RVO, and ISAI are the five existing Section 8 companies established by ICAI.