5. Financial Transparency
5.1 Market Stability
5.2 Independent Asset Valuers
5.3 Data Standards
In-Country Assessment Information

5. Financial Transparency

Goal – A well developed and transparent financial system that includes strong supporting institutions and highly trained and ethical professionals that contribute to effective financial intermediation and deep and broad access to capital and financial services


5.1 Market Stability (Strong)

Core Question:  Are market risks sufficiently transparent and diversified so that efficient capital allocation can occur?

High auditing, accounting, and reporting standards coupled with a plethora of financial services provided to businesses act to create transparency and stability in the market. Processes around insolvency and bankruptcy proceedings make market exit difficult, with an average time to complete bankruptcy of 4.3 years.

5.1.1 Financial Reporting (Strong)

What is the strength of the country’s auditing and reporting standards?

Rank 52 out of 148; Score 4.9 out of 7

While standards are high, they can be limited to larger publicly listed companies. Furthermore, companies are not free of scandal, such as Satyam Computer scandal in 2009 regarding falsified accounts.

5.1.2 Financial Services (Strong)

Does the financial sector provide a wide variety of financial services to businesses?

Rank 45 out of 148; Score 5.0 out of 7

Source: The Global Competitiveness Report 2013-2014, World Economic Forum /

5.1.3 Insolvency Process (Weak)

Rank 121 out of 188 Trend ↓ What is the average time to complete bankruptcy proceedings?

4.3 years What is the cost of bankruptcy proceedings as a percentage of the estate?

9%  What is the recovery rate of bankruptcy proceedings? 

25.6 cents on the dollar

Source: Doing Business 2014 – Closing a Business,


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5.2 Independent Asset Valuers (Weak)

Core Question: Do trained, independent and ethical asset valuers exist for all types of assets?  

Trained and independent valuers exist across a variety of asset classes. However, standards differ across organizations that provide valuation coursework and membership, and government approved criteria for valuers does not conform to international standards. Additionally, none of the various organizations that provide valuation frameworks and certification in India promote a code of ethics.

Survey Questions

5.2.1 Standards (Weak)

SQ 17  How easy is it to find a valuer who implements International Valuation Standards?

India is home to various valuation institutions that maintain standards, offer coursework, and allow for registration and membership. Two such organizations include The Institution of Surveyors, which claims International Valuation Standards Committee membership, and the Institution of Valuers. The Institute of Government-Approved Valuers stays true to its namesake with valuers who have government registration to appraise immovable property as well as agricultural land. However, the Government of India’s standards for valuers does not conform to the International Valuation Standards Council guidelines.

Civil Society Resource: International Valuation Standards Council,; Institution of Surveyors, ; Institution of Valuers, ; Institute of Government-Approved Valuers,

5.2.2 Training (Weak)

SQ 18  What is the level of training of valuers?

Valuers can receive training and certification from a variety of institutions but the valuation process seems to focus on the physical attributes of the property, location, and neighborhood as well as clear title. Market quotes from similar comparable sales may be included but a valuation approach consisting of the cost approach, sales comparison approach, and the income capitalization approach is hard to come by.

Civil Society Resource: Government Approved Valuers, a firm that employs individuals approved by the government to value immovable property among other asset classes

5.2.3 Ethics (Weak)

SQ 19  Are opinions offered by valuers free of influence from parties to the transaction?

Independent valuation professionals in for immovable property and agricultural land exist but the country lacks a code of conduct that is universally recognized or enforced across organizations and geographies.

Civil Society Resource: Institution of Surveyors, ;
Institution of Valuers, ;
Institute of Government-Approved Valuers,


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5.3 Data Standards (Weak)

Core Question: Is accurate property information available electronically in formats that are consistent with international standards?

No major multiple listing service is widely used, a lack of international standards for the electronic exchange of information, and a disregard for building codes made possible by government corruption is abused by developers and individuals.

Survey Questions

5.3.1 Sales & Operating Data (Weak)

SQ 20  A multiple listing service is an electronic exchange system where brokers and agents can widely share contracted real estate listings of properties that are for sale. Do multiple listing type services exist?

Several multiple listing services exist but none receive dominant enough use to provide the end user with the comfort that they have access to the majority of listings available in their desired geographic target area.


SQ 21  Do resources exist for obtaining building income and expense estimates?

Data from major data providers such as CBRE and Jones Lang LaSalle is available for the largest cities subject to purchase of research reports.

Civil Society Resource: CBRE India, Jones Lang LaSalle India, McKinsey & Co.

5.3.2 Interchange Formats (Weak)

SQ 22  Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensive markup language)?

While private organizations and the government are working towards the use and expansion of ebXML in India across a variety of industries and public functions, current use is low.

Civil Society Resource: Open Standards Consortium for Real Estate International,; Department of Commerce,; Department of Electronics and Information Technology,

5.3.3 Technical Standards (Very Weak)

SQ 23  Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards?

Though the Bureau of Indian Standards has published national building codes meant to serve as guidelines, the existence and quality of such codes is irrelevant due to the frequency with which developers can and do ignore code enforcement through bribery and corruption.

Civil Society Resource: Bureau of Indian Standards,


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