How to become a Registered Valuer under Companies Act?
The Central Government, vide a notification dated 23rd October, 2017, issued the Companies (Removal of Difficulties) Second Order, 2017 to provide that valuations required under the Companies Act, 2013 shall be undertaken by a person who, having the necessary qualifications and experience, and being a valuer member of a recognized valuer organisation, is registered as a valuer with the Authority.
Vide another notification on the same date, the Central Government delegated its powers and functions under section 247 of the Companies Act, 2013 to the Insolvency and Bankruptcy Board of India (IBBI) and specified the IBBI as the Authority under the Companies (Registered Valuers and Valuation) Rules, 2017.
The Companies (Registered Valuers and Valuation) Rules, 2017, as amended, require that only a person registered with the IBBI as a registered valuer can conduct valuations required under the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016 with effect from 1st February, 2019.
A person, who is rendering valuation services under the Companies Act, 2013, may continue to do so without a certificate of registration up to 31st January, 2019.
There are three categories of Registered Valuer on the basis of Assets Class:
Land & Building Valuer
Plant & Machinery Valuer
Securities or Financial Assets Valuer
Step-I: Qualification and Experience
As per rule 4 read with Annexure-IV of the Companies (Registered Valuers and Valuation) Rules, 2017, an individual shall have the following qualifications and experience to be eligible for registration as Registered Valuer:
Graduate + 5 years post qualification experience, or
Post Graduate + 3 years post qualification experience, or
Membership of a professional institute + 3 years post qualification experience.
Details qualifications and experience criteria as under wef 13/11/2018:
|Asset Class||Qualifications||Experience in specified Qualifications discipline.|
|Plant and Machinery||(i) Graduate in Mechanical, Electrical, Electronic and Communication, Electronic and Instrumentation, Production, Chemical, Textiles, Leather, Metallurgy, or Aeronautical Engineering, or Graduate in Valuation of Plant and Machinery or equivalent;||Five Years|
|(ii) Post Graduate on above courses.||Three years|
|Land and Building||(i) Graduate in Civil Engineering, Architecture, or Town Planning or equivalent;||Five years|
|(ii) Post Graduate on above courses and also in valuation of land and building or Real Estate Valuation (a two-year full time post-graduation course)||Three years.|
|Securities or Financial Assets||(i) Member of Institute of Chartered Accountants of India, Member of Institute of Company Secretaries of India, Member of the Institute of Cost Accountants of India, Master of Business Administration or Post Graduate Diploma in Business Management (specialization in finance).||Three years|
|(ii) Post Graduate in Finance|
|Note: Any other asset class along with corresponding qualifications and experience in accordance with rule 4 as may be specified by the Central Government.|
Other eligibility criteria as under:
is not a minor;
has not been declared to be of unsound mind;
is not an undischarged bankrupt, or has not applied to be adjudicated as a bankrupt;
is a person resident in India;
Explanation.─ For the purposes of these rules ‘person resident in India’ shall have the same meaning as defined in clause (v) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999) as far as it is applicable to an individual;
has not been convicted by any competent court for an offence punishable with imprisonment for a term exceeding six months or for an offence involving moral turpitude, and a period of five years has not elapsed from the date of expiry of the sentence:
Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be registered;
has not been levied a penalty under section 271J of Income-tax Act, 1961 (43 of 1961) and time limit for filing appeal before Commissioner of Income-tax (Appeals) or Income-tax 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 elapsed after levy of such penalty; and
is a fit and proper person:
Explanation.─ 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-
(i) integrity, reputation and character,
(ii) absence of convictions and restraint orders, and
(iii) competence and financial solvency.
Step-II Enrollment with a Registered Valuer Organisation (RVO)
A person possess qualifications as described under step-I, seek enrollment as a valuer member of a RVO recognized by the IBBI.
Assets class wise RVOs list as under(recognized till 01.07.2019):
Name of RVO
Website of RVO
Institution of Estate Managers and Appraisers
IOV Registered Valuers Foundation
ICSI Registered Valuers Organisation
The Indian Institution of Valuers
ICMAI Registered Valuers Organisation
ICAI Registered Valuers Organisation
PVAI Valuation Professional Organisation
CVSRTA Registered Valuers Association
Association of Certified Valuators and Analysts
CEV Integral Appraisers Foundation
Divya Jyoti Foundation
Nandadeep Valuers Foundation
All India Institute of Valuers Foundation
International Business Valuers Association
How to Enroll, go to RVO website and follow instructions provided on the website.
Step-III: Educational course
After enrollment, as a member of a RVO, complete the educational course recognized by the IBBI.
The syllabus, format and frequency of the valuation examination, including qualifying marks, shall be published on the website of IBBI at least three months before the examination.
An individual may appear for the valuation examination any number of times.
An individual who passes the valuation examination, shall receive acknowledgement of passing the examination.
Step-IV: Syllabus & Valuation Examination
Register and pass the computer based Valuation Examination of the relevant Asset Class conducted by the IBBI.
Asset class wise syllabus of valuation examination as under:
Educational Course for Asset Class – as mentioned below with effect from 1st June 2020
In pursuance of the first proviso to rule 5 (1) of the Companies (Registered Valuers and Valuation) Rules, 2017, read with Rule 12 (2) (a) and Rule 14 (e), the Insolvency and Bankruptcy Board of India, being the Authority, hereby specifies the details of educational course for the Asset Class of as below to be commenced from 1st June 2020 as under:
i. The curriculum for the educational course shall be as under:
Land & Building and Plant & Machinery Valuation examination Syllabus w.e.f. 01.06.2020 as under:
|Syllabus||Land and Building||Plant and Machinery|
|A. Common Syllabus:||Weight(%)||Weight(%)|
|Principles of Economics|
|Book Keeping and Accountancy||3||3|
|Law – General||10||10|
|Element of Statistics||2||2|
|Environmental Issues in Valuation||3||3|
|Professional Ethics and Standards||4||4|
|Important Case Laws on principles of valuation of repleted sector||2||1|
|Principles of Insurance and Loss Assessment||3||3|
Total common syllabus weight(A)
|B. Class specific Syllabus:|
|Valuation of Real Estate||10|
|Income Approach to Value||7|
|Market Approach to Value||7|
|Cost Approach to Value||7|
|Various purposes of Valuation||4|
|Valuation of P&M||6|
|Identification and Physical Verification of Plant, Machinery and Equipment (PME)|
Depreciation under income & Company Tax Act
|Income Approach to Value||2|
|Market Approach to Value||2|
|Cost Approach to Value||5|
|Process of Valuation||3|
|Broad categories of machines to be encountered by P&M valuers in actual practice||2|
|Leasing of P&M||2|
|Valuation of P&M for M&A etc. purpose||6|
|Law – P&M||3|
|Machine Tools, Factory, Utility Equipment and Electrical Installations||2|
Total specific Syllabus weight(B)
Securities or Financial Assets (SFA) Valuation examination Syllabus w.e.f. 01.06.2020 as under:
|Finance and Financial Statement Analysis||6|
|Professional Ethics and Standards||4|
|The Companies Act, 2013|
|The Indian Contract Act, 1872|
|The Sale of Goods Act, 1930|
|The Transfer of Property Act, 1882|
|The Indian Stamps Act, 1899|
|The Income Tax Act, 1961|
|The Insolvency and Bankruptcy Code, 2016 (IBC) and Regulations|
|The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002)|
|Financial Reporting under Indian Accounting Standards (Ind AS)||5|
|Overview of Valuation||4|
|Equity / Business Valuation|
|Fixed Income Securities|
|Valuation of other Financial Assets and Liabilities|
|Situation Specific Valuation|
|Judicial Pronouncements on Valuation||2|
A candidate having the required qualification and experience and having completed the education course specified above shall be eligible for registration as a valuer on passing the valuation examination of the asset class conducted by the Authority, subject to compliance with the other conditions as provided in the Companies (Registered Valuers and Valuation) Rules, 2017.
2. The educational course will be reviewed on a yearly basis.
For details syllabus, visit IBBI website
Step-V: Register as Registered Valuer
Once passed the Valuation Examination, a members can apply for registration within 3 years preceding the date of making an application for registration.
DISCLAIMER:- PLEASE CHECK & COMPARE THE CURRENT AVAILABLE DATA AVAILABLE ON WWW.IBBI.GOV.IN BEFORE ANY ACTION
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