FAQ- REGISTERED VALUERS- GENERAL
FAQ- REGISTERED VALUERS- GENERAL:
1. Who is a Valuer?
Ans. A Valuer is an individual (or an entity) who does the work of
valuation.
2. Which Act / Rules defines Valuer?
Ans. The Companies (Registered Valuers and Valuation) Rules, 2017,
notified in exercise of powers conferred
by section 247 read with sections 458, 459 and 469 of the Companies Act, 2013 (18 of 2013),
define a Valuer
and lay down rules governing a Valuer inter alia
including Eligibility, Qualification and Registration of Valuer.
3. Who is a registered valuer?
Ans. A registered
valuer means a person registered with the Authority in accordance with the
Companies (Registered Valuers and Valuation) Rules, 2017 (the Rules).
4. Who is the Authority?
Ans. Insolvency and Bankruptcy Board of India (IBBI) has been specified
as the Authority by the Central Government under section 458 of the Companies
Act, 2013.
5. Who is eligible to be
registered as a valuer under the Companies Act, 2013?
Ans. An individual, a
partnership entity or a company are eligible for registration subject to meeting the eligibility
requirements provided for in rule 3 of the Companies (Registered Valuers and
Valuation) Rules, 2017.
6. What are the eligibility norms,
qualification and experience required for an Individual to be registered as a valuer?
Ans. Subject to meeting other requirements provided in rule 3 and
rule 4 of
Companies (Registered Valuers and Valuation) Rules, 2017, an individual
is eligible to be a registered valuer, if he (i) is a fit and proper person,
(ii) has the necessary qualification and experience, (iii) is a valuer member
of a Registered Valuer Organisation (RVO), (iv) has completed a recognised
educational course as member of a RVO, and (v) has passed the valuation
examination conducted by the IBBI, and (vi) is recommended by the RVO for registration as a valuer.
7. Who is a Registered Valuer
Organisation (RVO)?
Ans. Registered Valuers Organisation
(RVO) is an organisation recognised under sub-rule (5) of rule 13 of the
Companies (Registered Valuers and Valuation) Rules, 2017 and are the first line
of regulators. An applicant has be first be a member with an RVO before seeking
registration as a registered valuer.
8. Who is a fit and proper Person?
Ans. To
determine whether an individual is a fit and proper person under these rules,
the Authority may take account
any relevant consideration, including but not limited to the
following criteria-
(i)
Integrity,
reputation and character,
(ii)
Absence
of convictions and restraint orders,
(iii)
Competence
and financial solvency.
9. If a person has been imprisoned for an offence,
does it make him ineligible for life to be a Valuer?
Ans. No, you
become eligible after a period of five years have elapsed from the date of
expiry of the sentence.
10. If and applicant has been
levied a penalty under section 271J of the Income Tax Act, 1961, does he / she
become ineligible for life to be a Valuer?
Ans. No, you become eligible after a lapse of five years from the date of
levy of such penalty provided the penalty has been paid.
11. Does an applicant need
registration to undertake valuation?
Ans. The conduct of valuation under any other law by any person shall not
be affected by virtue of coming into effect of the rules with respect to
registered valuers.
However, with effect from February 01, 2019,
only registered valuers can undertake valuation under (i) the Companies Act, 2013 and (ii) the Insolvency and Bankruptcy Code, 2016.
12. What valuation work can a
person do without registration?
Ans. With effect from February 01, 2019, only registered valuers can
undertake valuation under (i) the Companies Act, 2013 and (ii) the Insolvency and Bankruptcy Code, 2016. However, any (registered or
unregistered) person may continue to render valuation services under any other
law which has not stipulated requirement for valuation to be undertaken by a
registered valuer.
13.
In case an individual does not intend
to do valuation under (i) the Companies
Act, 2013 and (ii) the Insolvency and Bankruptcy Code, 2016, will
registration as Registered Valuer still be required?
Ans. No, conduct
of valuation under any other law by any person
shall not be affected
unless specifically notified under any other
Act.
14. What is the process for an
Individual to become a registered valuer?
Ans. Following are the (mandatory) stages to be followed by an Individual to become a
Registered Valuer (RV):
|
Stage
|
Particulars
|
|
I
|
Seek primary
membership (Valuer Member) with a Registered Valuers Organisation (RVO).
NB: On receipt of
application, RVO will scrutinise the application to ensure that the same
conforms to the requirements for registration, inter alia including
provisions under rule 3 and rule 4 of the Companies (Registered Valuers and
Valuation) Rules, 2017. After establishing confirmation with the said Rules,
RVO shall enrol an Applicant as Valuer Member.
|
|
II
|
Undertake
50 hours mandatory training in the Asset Class for which registration as
Registered Valuer is being pursued.
|
|
III
|
Pass
Valuation Examination for the selected Asset Class (for which 50 hours
mandatory training has been undertaken).
|
|
IV
|
Online submission of
Form-A and uploading of necessary stated documentary proofs.
NB: After submission
of Form-A by the Applicant, the same will then be sent to the RVO with whom
the applicant is registered, for approval. Upon scrutiny of Form-A, RVO shall
approve the application after which a payment link will be sent to the
Applicant.
|
|
V
|
Online Payment of Fees
by the Applicant.Applicant has to pay the fees online using the payment link
received on email. Payment link is received only after RVO accords online
approval to an applicant’s form. After online payment, applicant should take
printout of the payment confirmation page for future use.
|
|
VI
|
Submission
of following physical documents to RVO:
(i) duly signed Form-A along with Addendum to Form A;
(ii) copies of documentary
proofs uploaded earlier and;
(iii) proof of payment of fees [Printout of payment confirmation page
as mentioned under Step V above].
|
|
VII
|
RVO,
upon receipt of Form-A from the Applicant, shall:
(i) recheck the application and enclosed documentary proofs and;
(ii) ensure that documents are uploaded on the portal. Upon
verifying
the completeness and correctness of the application and
the documentary
proofs received,
(iii) RVO to send scan copy of signed application (duly signed by
RVO
and Applicant) to the applicant for uploading on portal.
(iv) The scan must include the following:
a. Physical
Form A duly signed (with seal affixed) by RVO;
b. Addendum
to Form-A and;
c. Proof of
Payment of Fees.
|
|
VIII
|
Upon
receipt of scan from RVO, applicant to upload the same on portal and submit.
|
|
IX
|
RVO
to approve application online and send physical application to IBBI.
The
application must include the following:
a. Checklist for Form-A [Page 1
& 2] enclosed herewith; b.
b. Physical Form A duly signed (with seal
affixed) by RVO and;
c. Addendum to Form-A.
d. Proof of Payment of Fees.
|
|
X
|
After the applicant
has been granted registration by the Authority, applicant has to obtain
Certificate of Practice from respective RVO before commencement of practice.
|
Ans. A registered
valuer can undertake valuation of assets only for the class of asset for
which he/she is registered for.
16. Registered valuers are
registered for how many asset classes?
Ans.Three, namely,
(i)
Land
and Building;
(ii)
Plant
and Machinery
(iii)
Securities
and Financial Assets.
17. Can a Registered Valuer for one
asset class register for another asset class?
Ans. Yes, subject
to meeting the eligibility criteria specified for the said asset class for which registration is being sought.
18. Can an applicant be registered
as valuer for all asset classes?
Ans. Yes, subject to having the qualification and experience provided
in the Companies (Registered Valuers and Valuation)
Rules, 2017 for each asset class and you have passed the valuation examination
for each asset class.
19. Can an applicant be registered directly by the Authority?
Ans. No, an applicant cannot seek direct registration with the Authority
and needs to complete the mandatory processes listed under Q.14 above prior to
seeking registration.
20.
Where can an applicant be
enrolled as a valuer member?
Ans. Applicant needs to be enrolled with a Registered Valuers
Organisation.
21.
How can an applicant select RVO
for enrolment?
Ans. Presently, there
are 11 RVOs which have been recognised by IBBI and their names are displayed on the IBBI website. You
can select any RVO depending on your convenience and the asset class for which
enrolment is sought.
22. Can and applicant be enrolled with two RVOs? –
Ans. An individual can be a member of only one RVO for a particular asset
class. However, for other asset class, an individual can be a member with
another RVO if the existing RVO is not recognised to accept members
in the asset class for which membership is being sought.
23.
Can a registered valuer shift
his membership from one RVO to another?
Ans. Yes, with the prior written permission of IBBI, a registered valuer
can shift his membership from one RVO to another.
24.
What are the conditions of Registration?
Ans. The
registration granted under the Rules shall be subject to the valuer complying
at all times, with the following conditions:
(a)
possess the eligibility and qualification and experience criteria
as specified under
rule 3 and rule 4;
(b)
comply
with the provisions of the Act, the rules, the Bye-laws or internal
regulations, as the case may be, of the respective registered valuers organisation;
(c)
in his
capacity as a registered valuer, not conduct valuation of the assets or
class(es) of assets other than for which he/it has been registered by the authority;
(d)
take
prior permission of the authority for shifting his/ its membership from one
registered valuers organisation to another;
(e)
take
adequate steps for redressal of grievances;
(f) maintain
records of each assignment undertaken by him for at least
three years from the
date of completion of such assignment;
(g) comply with the Code of Conduct (as per
Annexure-I of the Rules) of the registered valuers organisation of which he is
a member;
(h) in case a partnership entity or company is
the registered valuer, allow only the partner or director who is a registered valuer, for the asset class(es) that is being valued, to sign and act on behalf of it;
(i) in case a partnership entity or company is
the registered valuer, it shall disclose to the company concerned, the extent of capital
employed or contributed in the partnership entity or the company by the partner or director, as the case
may be, who would sign and act in respect of relevant valuation assignment for
the company;
(j) in case a partnership entity is the
registered valuer, be liable jointly and severally along with the partner who
signs and acts in respect of a valuation assignment on behalf of the
partnership entity;(k) in case a company is the registered valuer,
be liable along with director who signs and acts in respect of a valuation
assignment on behalf of the company;
(l) in case a partnership entity or company is
the registered valuer, immediately inform the
Authority on the removal of a partner or director, as the case may be, who is a
registered valuer along with detailed reasons for such removal; and
(m)
comply
with such other conditions as may be imposed by the Authority.
25. Can a person in employment undertake valuation examination?
Ans. Yes.
26. Can
a person in employment seek registration?
Ans. No, at the time of applying for registration, an applicant must not
be in employment. In effect, while a
person in employment can appear for the valuation examination, such person
shall not be in employment at the time of seeking registration as a valuer.
27.
Will an applicant who has been shown as an employee
in a family owned business, but does not undertake any
activity related to the family business, be considered to be in employment?
Ans. Yes.
28.
Will an applicant who has been shown as an employee
in a family owned business, but does not undertake any
activity related to the family business, be considered to be in employment if
he is not drawing any salary?
Ans. Yes.
29.
Will an applicant who is a
whole time director or Executive Director in a family owned business be
considered to be in employment if he/she is not drawing any salary?
Ans. Yes.
30.
Can an applicant surrender
his/her membership with RVO?
Ans. Yes, membership of RVO can be surrendered in accordance with the
Model Bye-laws of RVO as covered under section XI of Part II of Annexure III
annexed to the Companies (Registered Valuers and Valuation) Rules 2017
31.
Whether any membership card, identity card, registration certificate etc. is issued upon registration as a registered valuer?
Ans. An eligible applicant, upon registration would receive a Certificate of Registration. Physical
copy of the same is dispatched to the address of correspondence stated by the
applicant. However, no membership card / identity card etc is issued other than
the certificate of registration.
for more information website link:https://ibbi.gov.in/service-provider/registered-valuers
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