AUTHORITY IBBI STREAMLINE THE MIGRATION PROCESS

AUTHORITY IBBI STREAMLINED THE MIGRATION PROCESS OF TRANSFERRING MEMBERSHIP FROM ONE RVO TO ANOTHER RVO OF YOUR CHOICE: REF-CIRCULAR NO-IBBI/RVO/029/2020 DATED-28th January 2020

TRANSFER OF MEMBERSHIP FROM ONE RVO TO ANOTHER

IBBI ISSUED CIRCULAR NO-IBBI/RVO/029/2020 DATED-28th January 2020

The Companies (Registered Valuers and Valuation) Rules, 2017 (Rules) envisage Registered Valuer Organisations (RVOs) to act as front-line regulators for the development and regulation of the valuation profession. They have the responsibility to admit, groom, monitor, and discipline the members of the profession, and while doing so, they must follow well-established norms of governance befitting a regulatory State. Keeping their responsibilities in view, the Rules prescribe the composition of Governing Board of an RVO, and the manner of discharge of its powers and functions. The reputation of the valuation profession and the professional members hinges on the reputation of the RVO concerned. Being the new entities in the regulatory space, the conduct and performance of RVOs are being watched very closely by the stakeholders.
2. The Rules envisage a competitive industry of RVOs, where they compete with one another to provide better valuation services through their professional members, in the interest of the users, and other stakeholders of valuation services. The Rules also envisage that a member may shift membership from one RVO to another, subject to prior permission of the Authority, that is, the Insolvency and Bankruptcy Board of India (Board) for the same. The Rules further require an RVO to employ fair, reasonable, just and non-discriminatory practices for enrolment and regulation of its members.
3. It has been repeatedly brought up by the RVOs in the various meetings, the Board is having with MDs/CEOs of RVOs on the 7th of every month, that a few RVOs are restricting the transfer of membership by using dilatory tactics, charging unreasonable transfer fees, etc. It has been the endeavor of the Board that the RVOs mutually agree to a mechanism for seamless transfer of a member from one RVO to another.

It has been impressed on them to avoid restrictive and unreasonable practices and to allow transfer of membership expeditiously, after recovering dues, if any, pending from the member concerned and charging a reasonable fee to cover the expenses on transfer. However, the problem persists.
4. In order to streamline the process of transfer of membership from one RVO to another, the RVOs are directed to follow the process as outlined under the Tables below: …….

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