Question 1:- Who is a Valuer?
Answer:- A Valuer is an individual or an entity who does the work of valuation.
Question 2:- Which Act and Rules define Valuer?
Answer:- 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, define a Valuer and lay down rules governing a Valuer inter alia including Eligibility, Qualification and Registration of Valuer.
Question 3:- Who is a registered valuer?
Answer:- A registered valuer means a person registered with the Authority by the Companies (Registered Valuers and Valuation) Rules, 2017
Question 4:- Who is the Authority?
Answer:- The 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.
Question 5:- Who is eligible to be registered as a valuer under the Companies Act, 2013?
Answer:- An individual, a partnership entity or a company is eligible for registration subject to meeting the eligibility requirements provided for in rule 3 of the Companies (Registered Valuers and Valuation) Rules, 2017.
Question 6:- What are the eligibility norms, qualifications and experience required for an Individual to be registered as a valuer?
Answer:- 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 a member of an RVO, and (v) has passed the valuation examination conducted by the IBBI, and (vi) is recommended by the RVO for registration as a valuer.
Question 7:- Who is a Registered Valuer Organisation (RVO)?
Answer:- 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 is the first line of regulators. An applicant has to be first a member with an RVO before seeking registration as a registered valuer.
Question 8:- Who is a fit and proper person?
Answer:- To determine whether an individual is a fit and proper person under these rules, the Authority may take into 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.
Question 9:- If a person has been imprisoned for an offence, does it make him ineligible for life to be a Valuer?
Answer:- No. He becomes eligible after five years have elapsed from the date of expiry of the sentence.
Question 10:- If an 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?
Answer:- No. He becomes eligible after a lapse of five years from the date of levy of such penalty provided the penalty has been paid.
Question 11:- Does an applicant need registration to undertake valuation?
Answer:- 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.
Question 12:- What valuation work can a person do without registration?
Answer:- 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 other registered or unregistered person may continue to render valuation services under any other law which has not stipulated the requirement for valuation to be undertaken by a registered valuer.
Question 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?
Answer:- No, the conduct of valuation under any other law by any person shall not be affected unless specifically notified under any other Act.
Question 14:- What is the process for an Individual to become a registered valuer?
Answer:- Following are the mandatory stages to be followed by an Individual to become a Registered Valuer (RV):-
Stage 1: Seek primary membership (Valuer Member) with a Registered Valuers Organisation (RVO).
NB: On receipt of the 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 a Valuer Member.
Stage 2: Undertake 50 hours of mandatory education course in the Asset Class for which registration as Registered Valuer is being pursued.
Stage 3: Pass Valuation Examination for the selected Asset Class for which 50 hours of mandatory education course has been undertaken.
Stage 4: 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 enrolled, for approval. Upon scrutiny of Form-A, RVO shall approve the application after which a payment link will be sent to the Applicant on his email address.
Stage 5: Online Payment of Fees by the Applicant.
The applicant has to pay the fees online using the payment link received in the email. The payment link is received only after RVO accords online approval to an applicant’s form. After online payment, the applicant should take the printout of the payment confirmation page for future use.
Stage 6: 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 5 above].
Stage 7: 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, RVO to send scan copy of signed application duly signed by RVO and Applicant to the applicant for uploading on portal. 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.
Stage 8: Upon receipt of scan from RVO, applicant to upload the same on portal and submit.
Stage 9: RVO to approve application online and send physical application to IBBI.
The application must include the following:
a. Physical Form A duly signed (with seal affixed) by RVO;
c. Addendum to Form-A; and,
d. Proof of Payment of Fees.
Stage 10: After the applicant has been granted registration by the Authority, applicant has to obtain Certificate of Practice from respective RVO before commencement of practice.
Question 15:- What work can a registered valuer undertake?
Answer: A registered valuer can undertake valuation of assets only for the class of asset for which he/she is registered for.
Question 16:- Registered valuers are registered for how many asset classes?
Answer: Three, namely,
(i) Land and Building;
(ii) Plant and Machinery
(iii) Securities and Financial Assets.
Question 17:- Can a Registered Valuer for one asset class register for another asset class?
Answer: Yes, subject to meeting the eligibility criteria specified for the said asset class for which registration is being sought.
Question 18:- Can an applicant be registered as valuer for all asset classes?
Answer: Yes, subject to having the qualification and experience provided in the Companies (Registered Valuers and Valuation) Rules, 2017 for each asset class and having passed the valuation examination for each asset class.
Question 19:- Can an applicant be registered directly by the Authority?
Answer: 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.
Question 20:- Where can an applicant be enrolled as a valuer member?
Answer: Applicant needs to be enrolled with a Registered Valuers Organisation.
Question 21:- How can an applicant select RVO for enrolment?
Answer: The applicant can seek membership with any of the RVO, the details of which is displayed on IBBI website. However, the applicant may seek membership of only that RVO which is recognised for the asset class, for which he intends to take registration with the Authority.
Question 22:- Can an applicant be enrolled with two RVOs?
Answer: 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 which is recognised for the said asset class.
Question 23:- Can a valuer member shift his membership from one RVO to another?
Answer: Yes, prior to registration as a registered valuer, a valuer member can shift his membership from one RVO to another in accordance with the circular No. IBBI/RVO/029/2020 dated 28th January, 2020.
Question 24:- Can a registered valuer shift his membership from one RVO to another?
Answer: Yes, with the prior written permission of IBBI, a registered valuer can shift his membership from one RVO to another in accordance with the circular No. IBBI/RVO/029/2020 dated 28th January, 2020.
Question 25:- What are the conditions of Registration?
Answer: 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.
Question 26:- Can a person in employment appear in valuation examination?
Answer: Yes.
Question 27:- Can a person in employment seek registration?
Answer: 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.
Question 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?
Answer: Yes.
Question 29:- 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?
Answer: Yes.
Question 30:- 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?
Answer: Yes.
Question 31:- Can an applicant surrender his/her membership with RVO?
Answer: 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.
Question 32:- Whether any membership card, identity card, registration certificate etc. is issued upon registration as a registered valuer?
Answer: An eligible applicant, upon registration would receive a Certificate of Registration. Soft copy of the certificate is sent to the applicant on his registered email address, while physical copy is handed over to the RVO of which RV is a member. However, no membership card / identity card etc is issued other than the certificate of registration.
Question 33:- What are the eligibility norms for a Partnership entity or company to be registered as a valuer?
Answer: The eligibility norms for a partnership entity or company to be registered as a valuer is stated under Rule 3(2) of the Companies (Registered Valuers and Valuation) Rules, 2017.
Question 34:- Can a partnership entity or a company rendering any kind of services be registered as a valuer?
Answer: A partnership entity or a company can be registered as valuer if they have been set up with the objects of rendering professional or financial services including valuation services. In case of Company, it should not be a subsidiary, joint venture or associate of another company or body corporate.
Question 35:- Are all partners or directors required to have passed the valuation examination for a partnership firm or a company to be eligible for registration as a valuer?
Answer: Yes, all partners or directors should have passed the valuation examination under rule 5 within three years preceding the date of making an application for registration under rule 6.
Question 36:- How many partners or directors need to be registered valuers for a partnership firm or a company to be eligible for registration as a valuer?
Answer: Three or all the partners or directors, whichever is lower, of the partnership firm or company, as the case may be, need to be registered valuers with atleast one of the partner or director being a registered valuer for the same asset class for which registration is being sought by the partnership firm or company. The registered valuers must possess certificate of practice for the relevant asset class.
Question 37:- Can a registered valuer be director in more than one registered valuer entity?
Answer: No.
Question 38:- If a partnership firm or a company has partners or directors who are registered valuers in the asset class of ‘Plant and machinery’, can the firm or company be registered as a register valuer in the asset class of ‘Land and Building’?
Answer: No, a partnership firm or a company needs to have at-least one partner or director in the asset class of ‘Land and Building’, to be granted registration as a registered valuer in the asset class of ‘Land and Building’.
Question 39:- Can an unregistered firm be registered as a valuer?
Answer: No. Only a partnership entity registered under the India Partnership Act, 1932 or a limited liability partnership registered under the Limited Liability Partnership Act, 2008 can be registered as a Valuer.
Question 40:- Can a partnership entity or company be registered for more than one asset class?
Answer: Yes, subject to meeting the conditions stated for the asset class for which registration is being sought by the partnership firm or company.
Question 41:- Does a partnership firm or company also need to be enrolled with any RVO?
Answer: Yes. A partnership firm or company has to seek membership of any RVO which is recognised for the asset class(es), for which it intends to seek registration as valuer with the Authority.
Question 42:- Can the application for registration of a partnership entity or company be sent directly to the Authority for registration?
Answer: No, application (Form B along with Addendum to Form B) of a partnership entity or company must be routed through the RVO along with the recommendation of the RVO recognised for the asset class for which registration is being sought.
Question 43:- Can the composition of partnership firm or company be changed after being registered as valuer?
Answer: Yes. In case of addition of new partner or director, the prior permission of the Authority has to be taken. In case of removal of partner or director, the Authority must be informed of the same within 15 days of such change.
Question 43:- Will any change in terms of Partnership Deed, or Articles of Association/ Memorandum of Association in case of Company, require approval of the Authority?
Answer: Yes, prior approval will be required.
