Process to be followed for registration as Registered Valuer Entity (RVE) with Insolvency and Bankruptcy Board (IBBI) of India under the Companies (Registered Valuers and Valuation) Rules, 2017

Process to be followed for registration as Registered Valuer Entity (RVE) with Insolvency and Bankruptcy Board (IBBI) of India under the Companies (Registered Valuers and Valuation) Rules, 2017

Process to be followed for registration as Registered Valuer Entity with Insolvency and Bankruptcy Board (IBBI) of India under the Companies (Registered Valuers and Valuation) Rules, 2017

With an objective to familiarise the eligible and desirous individuals and entities with the process of registration as a valuer with the Insolvency and Bankruptcy Board (IBBI) , the IBBI released the process required.

The process of registration as Registered Valuer Entity with the IBBI is as under:

For Entities 

(Partnership Firms, LLP and Companies)

Step 1: Satisfy yourself that you meet the eligibility requirements prescribed in rule 3 and qualification and experience prescribed in rule 4 of the Rules.

Step 2: Submit Form B appended to the Rules, duly filled in along with a payment of Rs.11,800 (Fee of Rs.10,000 + 18% GST) in favour of the Insolvency and Bankruptcy Board of India and supporting documents, to your RVO. Quote GST number, if required by you. The Form B is to be submitted, documents to be uploaded and payment is to be made online. Please visit the IBBI web site www.ibbi.gov.in for this purpose.

Step 3: Thereafter, RVO shall verify Form B and other requirements and then submit the Form B along with its recommendation for registration as a valuer to the IBBI. The Form is to be submitted by the RVO online.

Step 4: On receipt of Form B along with recommendation of the RVO, the fee and other documents, the IBBI shall process the application for registration in accordance with the Rules.

BACKGROUND

Earlier, The Central Government had notified the commencement of section 247 (relating to Valuers) of the Companies Act, 2013 with effect from 18th October, 2017. It also notified the Companies (Registered Valuers and Valuation) Rules, 2017 (hereafter, Rules) on the same day.

Vide notification dated 23rd October, 2017, the Central Government 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 Recognised Valuer Organisation (RVO), 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 Rules.

Subject to meeting other requirements, 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 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. A partnership entity or a company is also eligible for registration subject to meeting the requirements.

Source:- Press Information Bureau, Government of India, Ministry of Corporate Affairs



Registered Valuer Entity

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.

FAQs

1. What are the eligibility norms for a Partnership entity or company to be registered as a valuer?

Ans. 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. 
2. Can a partnership entity or a company rendering any kind of services be registered as a valuer?

Ans. 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.
3. 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?Ans.

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. 
4. 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?

Ans. 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.
5. Can a registered valuer be director in more than one registered valuer entity?Ans. No.
6. 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’?

Ans. 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’.
7. Can an unregistered firm be registered as a valuer?

Ans. 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.
8. Can a partnership entity or company be registered for more than one asset class?

Ans. Yes, subject to meeting the conditions stated for the asset class for which registration is being sought by the partnership firm or company.
9. Does a partnership firm or company also need to be enrolled with any RVO?

Ans. 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.
10. Can the application for registration of a partnership entity or company be sent directly to the Authority for registration?

Ans. 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. 
11. Can the composition of partnership firm or company be changed after being registered as valuer?

Ans. 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.
12. Will any change in terms of Partnership Deed, or Articles of Association/ Memorandum of Association in case of Company, require approval of the Authority?

Ans. Yes, prior approval will be required.