Eligibility Qualification and Experience to become a Registered Valuer under IBBI:-
In this article, we have discussed the eligibility, qualification and experience required to become a registered valuer under the Insolvency and Bankruptcy Board of India (IBBI) for individuals only.
However, a registered partnership firm and company are also eligible to become the registered valuer under IBBI but we have not considered the same in this article.
Part 1:- Eligibility:
Rule 3 and Rule 4 of the Companies (Registered Valuers and Valuation) Rules, 2017 deal with the eligibility, qualification and experience of a person to become a registered valuer.
According to the Rule 3 of Companies (Registered Valuers and Valuation) Rules, 2017 a person shall be eligible to be a registered valuer if he is:-
1. A valuer member of a registered valuers organization (RVO) (Refer to the list of RVOs in Note 1 below);
2. Recommended by the registered valuers’ organization of which he is a valuer member for registration as a valuer;
3. Possesses the qualification and experience as specified in Rule 4 of Companies (Registered Valuers and Valuation) Rules, 2017 (Refer to the Part – 2 of this article on Qualification and Experience);
4. Not a minor;
5. Not been declared to be of unsound mind;
6. Not an undischarged bankrupt, or has not applied to be adjudicated as a bankrupt;
7. A person resident in India; (person resident in India
8. Has not been convicted by any court for an offence punishable with imprisonment for a term exceeding six months and or for an offence of five years that has not elapsed from the date of expiry of the sentence.
9. Has not been levied a penalty under section 271J of Income Tax Act, 1961 and time limit for filing appeal before Commissioner Appellate Tribunal, as the case may be has expired, or such penalty has been confirmed by Income-tax Appellate Tribunal, and five years have not been elapsed from the date of levy of such penalty provided penalty has been paid, and
10. A fit and proper person. For determining whether an individual is a fit and proper person under these rules, the authority, may take account of any relevant consideration, including but not limited to the following criteria:-
a. Integrity, reputation and character,
b. Absence of convictions and restraint orders, and
c. Competence and financial solvency.
Part 2:- Qualification and Experience to become a registered valuer:
There are three asset classes in which any person can become a registered valuer. Each class have different qualification and experience requirements. Following are the assets class wise qualification and experience requirements:-
Asset Class: Plant and Machinery
The person should be a Graduate in any of the following disciplines:-
1. Mechanical,
2. Electrical,
3. Electronic and Communication,
4. Electronic and Instrumentation,
5. Production,
6. Chemical,
7. Textiles,
8. Leather,
9. Metallurgy, or
10. Aeronautical Engineering, or
11. Graduate in Valuation of Plant and Machinery or equivalent
And having post qualification experience of five years or more in a specified discipline.
OR
The person should have Post Graduate degree in any of the above disciplines and have post qualification experience of three years or more in specified discipline.
Asset Class: Land and Building
The person should be a Graduate in any of the following disciplines:-
1. Civil Engineering,
2. Architecture,
3. Town Planning or equivalent;
And having post qualification experience of five years or more in a specified discipline.
OR
The person should be Post Graduate in any of the above disciplines and also in the valuation of land and building or real estate valuation (a two-year full-time post-graduation course) and have experience of three years or more in a specified discipline.
Asset Class: Securities or Financial Assets
The person having any of the membership of the following professional institutes or postgraduate degree:-
1. Member of Institute of Chartered Accountants of India.
2. Member of Institute of Company Secretaries of India.
3. Member of Institute of Cost Accountants of India.
4. Master of Business Administration or Post Graduate Diploma in Business Management (specialization in finance)
5. Post Graduate in finance
And having post qualification experience of three years or more.
Note – 1 Following are the registered valuers’ organizations under IBBI:-
a. RVO Estate Managers and Appraisers Foundation
b. IOV Registered Valuers Foundation
c. ICSI Registered Valuers Organisation
d. IIV India registered Valuers Foundation
e. ICMAI Registered Valuers Organisation
f. ICAI Registered Valuers Organisation
g. PVAI Valuation Professional Organisation
h. CVSRTA Registered Valuers Association
i. Association of Certified Valuators and Analysts
j. CEV Integral Appraisers Foundation
k. Divya Jyoti Valuers Foundation
l. Nandadeep Valuers Foundation
m. All India Institute of Valuers Foundation
n. International Business Valuers Association
o. All India Valuers Association
p. Assessors and Registered Valuers foundation
Some of these organizations are registered for all three assets classes, however, some are registered for 1 or 2 assets classes only. You can check the same from the IBBI website or from the websites of the individual organizations.
