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How to become a Registered Valuer under Companies Act? ALL YOU NEED TO KNOW -An Overview

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.

To know more background on Registered Valuer and related laws, log in to WWW.IBBI.GOV.IN  .

There are three categories of Registered Valuer on the basis of Assets Class:

  1. Land & Building Valuer

  2.  Plant & Machinery Valuer

  3. 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, 2017an individual shall have the following qualifications and experience to be eligible for registration as Registered Valuer:

In short:

  1. Graduate + 5 years post qualification experience, or

  2. Post Graduate + 3 years post qualification experience, or

  3. Membership of a professional institute + 3 years post qualification experience.

Details qualifications and experience criteria as under wef 13/11/2018:

Asset ClassQualificationsExperience 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:

  1. is not a minor;

  2. has not been declared to be of unsound mind;

  3. is not an undischarged bankrupt, or has not applied to be adjudicated as a bankrupt;

  4. 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;

  5. 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;

  6. 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

  7. 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

Asset Class

P&M

L&B

S/FA

Institution of Estate Managers and Appraisers

http://www.iesmarvo.net

Yes

Yes

Yes

IOV Registered Valuers Foundation

http://www.iovrvf.org

Yes

Yes

Yes

ICSI Registered Valuers Organisation

http://www.icsirvo.in

Yes

Yes

Yes

The Indian Institution of Valuers

http://www.iivrvo.org

Yes

Yes

Yes

ICMAI Registered Valuers Organisation

http://www.rvoicmai.in

Yes

Yes

Yes

ICAI Registered Valuers Organisation

http://www.icairvo.in

No

No

Yes

PVAI Valuation Professional Organisation

http://www.pvaivpo.org

Yes

Yes

Yes

CVSRTA Registered Valuers Association

http://www.cvsrtarva.org

Yes

Yes

Yes

Association of Certified Valuators and Analysts

http://www.acvaindia.org

No

No

Yes

CEV Integral Appraisers Foundation

http://www.ceviaf.org/

Yes

Yes

Yes

Divya Jyoti Foundation

http://www.djfrvo.org

Yes

Yes

Yes

Nandadeep Valuers Foundation

http://www.nandadeep.in

Yes

Yes

Yes

All India Institute of Valuers Foundation

http://www.aiiovf.org

Yes

Yes

Yes

International Business Valuers Association

http://www.ibva-rvo.com

Yes

Yes

Yes

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:

SyllabusLand and BuildingPlant and Machinery
A. Common Syllabus:Weight(%)Weight(%)
Principles of Economics

Micro Economics

Macro Economics

Parallel Economics

 

3

3

1

 

3

3

1

Book Keeping and Accountancy33
Law – General1010
Element of Statistics22
Environmental Issues in Valuation33
Professional Ethics and Standards44
Important Case Laws on principles of valuation of repleted sector21
Principles of Insurance and Loss Assessment33
Report writing33
Case Study2020

Total common syllabus weight(A)

57

56

B. Class specific Syllabus:
Law-Real Estate8
Valuation of Real Estate10
Income Approach to Value7
Market Approach to Value7
Cost Approach to Value7
Various purposes of Valuation4
Valuation of P&M6
Identification and Physical Verification of Plant, Machinery and Equipment (PME)

Depreciation under income & Company Tax Act

2

3

Income Approach to Value2
Market Approach to Value2
Cost Approach to Value5
Process of Valuation3
Broad categories of machines to be encountered by P&M valuers in actual practice2
Leasing of P&M2
Valuation of P&M for M&A etc. purpose6
Law – P&M 3
Machine Tools, Factory, Utility Equipment and Electrical Installations2
Industrial Processes6

Total specific Syllabus weight(B)

43

44

TOTAL(A+B)

100

100

Securities or Financial Assets (SFA) Valuation examination Syllabus w.e.f. 01.06.2020 as under:

SyllabusWeight(%)
Macroeconomics

Micro Economics

Macro Economics

Parallel Economics

3
Finance and Financial Statement Analysis6
Professional Ethics and Standards4
General laws:18
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)
etc
Financial Reporting under Indian Accounting Standards (Ind AS)5
Overview of Valuation4
Valuation Approaches3
Valuation Application:35
Equity / Business Valuation
Fixed Income Securities
Option Valuation
Valuation of other Financial Assets and Liabilities
Intangible Assets
Situation Specific Valuation
etc
Judicial Pronouncements on Valuation2
Case Studies20
TOTAL100

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

WWW.IBBI.GOV.IN

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

It has been observed that all the members of CEV INDIA, CEV IAF RVO, CEV TRUST, CEV ASSOCIATION OF JOURNALISTS AND REPORTERS have not yet joined all the social media platform of CEV GROUP OF ORGANIZATIONS.

Please note that all the information about upcoming events and benefits for the members including CEP, COP, MEP, SEMINARS, WEBINARS ETC., exclusively designed for its life members will be announced in the private social media platforms of CEV INDIA GROUP.

All official members are requested to join the below mentioned social media platforms of CEV INDIA GROUP immediately.

Sr No

Description

 Link

1

CEV NEWSPAPER PORTAL     

http://WWW.CEVNEWS.IN

2

FACEBOOK PAGE CEV INDIA

https://www.facebook.com/cevindia/

3

FACEBOOK GROUP CEV INDIA

https://www.facebook.com/groups/615139472157613/?ref=share

4

TELEGRAM GROUP 

https://t.me/joinchat/FOGm2kcLrfZKx96m0SLiLw

5

GOOGLE LINK CEV IAF 

https://g.co/kgs/ec845C

6

GOOGLE LINK CEV INDIA

https://g.co/kgs/mwQfxf

7

YOUTUBE CHANNEL

https://www.youtube.com/channel/UCArlueILY_05bSunIU0fEqA

8

TWITTER HANDLE

https://twitter.com/cevindia?s=09

9

FACEBOOK PAGE CEV PDE TRUST 

https://www.facebook.com/CEV-Professional-Development-Educational-Trust-398139117648089/

10

FACEBOOK PAGE CEV TECHNO NEWS

https://www.facebook.com/cevtechnonews/

11

FACEBOOK PAGE CEV INTEGRAL ASSOCIATION OF JOURNALISTS AND REPORTERS       

https://www.facebook.com/CEV-Integral-Association-of-Journalists-Reporters-2022207768084923/

How to become a Registered Valuer under Companies Act? An Overview

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