IMPORTANT DECISIONS TAKEN IN MONTHLY MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS

(REF:-  34th MEETING Point No-7. The mechanism for disseminating important decisions taken in the monthly meetings: The RVOs were requested to have a section of their website for communicating the important decisions taken in the monthly meeting of the CEOs/MDs of RVOs to their members. A status was prepared and displayed in the meeting. It was noted that only six RVOs have provided this facility on their websites. Other RVOs were requested to have this facility at the earliest.)

31st MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON 07th SEPTEMBER 2020 AT 02.30 PM

11. Determine quality of Valuation Reports: The issue was discussed in the previous meeting and it was clarified that RVOs being front line regulators have to act proactively. The judgments of the NCLT, or any other judicial forum are available on their respective websites. The RVOs may access the judgments through the official websites and analyze the judgments wherein adverse remarks have been made against a valuation report or their valuer members and examine if any necessary action was required in each case. (Action: RVOs/RVO division)

13. Compliance of Circular no. IBBI/RVO/029/2020 issued by the Board on 28thJanuary 2020: The Board has been receiving many complaints regarding transfer of membership from one RVO to another. It was clarified that for the purposes of the Circular, disciplinary action would be considered as pending against a member only if a SCN has been issued to the member. After receipt of application for transfer of membership from a member, the RVO shall not raise a fresh query from a member for initiating the proceedings.

17. Employment Certificate of an applicant for registration as a valuer: A concern was raised that the RVOs forward applications of members for registration as a valuer, wherein, the member was found working with several organisations but the supporting employment certificate for all the organisations was not provided. It was clarified that the work experience provided by the member applicant shall be supported by employment certificates.

18. Valuation Examination: The Valuation Examination data for the month ending August 2020 was placed for information of the RVOs. One of the RVOs suggested that the RVOs should receive an intimation regarding passing of their member after issue of the examination certificate electronically. Valuation Examination division was requested to examine the issue.

32nd MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON 07th OCTOBER 2020 AT 01.00 PM

10. Valuation Examination: The Valuation Examination data for the month ending September 2020 was displayed. In the previous meeting, one of the RVOs suggested that the RVOs be provided an intimation as soon as their member passes the valuation examination and examination certificate is generated. DGM (KJ) from Valuation Examination Division conveyed to the RVOs that the suggestion was examined and stated that this will not be possible considering the privacy issues of the candidates and the lack of consent thereof. It was suggested that the RVOs may consider providing for this in their enrollment form and ensure that this was disclosed directly by the member to the concerned RVO.

11. Distinction in type of membership created by RVOs i.e. Primary members and Permanent members: It was noted that some RVOs have created a classification of members such as primary members and permanent members. The RVOs were requested to comply with the provisions of the Rules.

12. Examination of eligibility, including scrutiny of necessary documents, before enrollment of members by RVOs: The RVOs were requested to comply with Clause 9 of the Rules which provide that no individual shall be enrolled as a member if he is not eligible to be a registered valuer with the authority. It was noted that there were some exceptions in this regard for which, the RVOs may be guided by the clarification by the Board. In all other cases, if a member who is not eligible to be an RV and still wants to undertake the 50 hours educational course for knowledge accretion, then the RVO shall communicate this to the member in writing through an e-mail, before he is permitted to do the educational course. 

14. Publishing of information of RVs on website of the RVO: The RVOs were requested to publish information of their registered valuers on their website. The information may include, name, registration number, number of ongoing assignments, number of concluded assignments, disciplinary orders issued by RVO or IBBI, adverse objections of AA or any other judicial authority etc. The information may be published in the format annexed as Annexure-B.

15. Eligible educational qualifications for the purpose of registration as a valuer: It was clarified by CGM (RKG) that while considering the eligible educational qualifications for the purpose of registration as valuer, the mapping of specified disciplines as provided under Annexure IV of the Companies (Registered Valuers and Valuation) Rules, 2017 may be made with the relevant/appropriate nomenclatures provided under AICTE notification dated April 28, 2017. Vide said notification, the AICTE has notified major/core branches of Engineering and Technology with relevant/appropriate nomenclatures of undergraduate (UG) and post-graduate (PG) degrees relevant for recruitment in teaching positions in the technical institutions.

33rd MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON 09th NOVEMBER 2020 AT 02.30 PM

12. Publishing of information of RVs on website of the RVO: The RVOs were requested to publish the profile of their members including information such as name, registration number, details of ongoing and concluded assignments, disciplinary action by RVO or IBBI, adverse observation of AA or any other judicial authority etc. on their website.The Board had circulated a format (Annexure-B) annexed with the minutes of 32nd monthly meeting held on 07th October 2020 for this purpose. Mr. Vinay Goel, MD, IOV RVF raised concerns regarding publication of such information as some RVs have not received any assignments and publication of such information could demotivate them. Mrs. Sarika Singhal, CEO, ICAI RVO requested for postponement of this initiative by another six months as some of the RVs were considering surrendering their membership due to thesetback caused by pandemic COVID-19. It was decided to revisit this in the next monthly meeting to be held on 07th December 2020.

16. Discussion on insertion of unique identifier in the certificate of registration issued to RVs: CGM RKG apprised that the certificate of registration of an RV does not contain any unique identifier of the concerned individual / entity. There is a possibility that this might lead to misuse of the certificate by another individual / entity with identical or similar name. This could, therefore, affect the credibility of the valuation report. The RVOs were in favour of having PAN/CIN/LLP number on the registration certificate for identification purposes. It was decided after discussions that the feasibility of all the options would be considered including that of having a water mark, and then a final decision shall be taken by the authority.

34th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON 07th DECEMBER 2020 AT 02.30 PM

15. Fees structure of the RVOs for educational course, CEP, training through online mode: A summary of the fees structure of the RVOs for the educational course and CEP, as compiled from the website of the RVOs, was presented in the meeting. It was noted that some of the RVOs have specified fee structure for the course conducted through online mode, whereas some had a uniform fee structure for both online and classroom courses. The Board had received feedback that the RVOs had not rationalized their fee structure even after introduction of online delivery of the educational course, further some RVOs had not disclosed the fee structure for online delivery of the course on their website. All RVOs were requested to consider rationalization of the fee structure in accordance with the reduced cost of conducting course through online mode and disclose the same on their website. Further, the entire fee structure for all services including that for CEP and training conducted by the RVOs may also be provided on the website of the RVOs.

17. Similar names of RVOs: It was observed that the Board has been receiving applications for recognition as an RVO from companies which are having similar names to that of the existing RVOs. For framing a policy on the issue, the Board sought suggestions from the RVOs before the next monthly meeting to be held on 07th January 2021.

35th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON JANUARY 07, 2021 AT 01.00 PM

10. Half yearly report of RVOs: The RVOs were required to submit their half yearly reports (HYR) as on 31st March 2020 before 30th September 2020. It was noted that only seven RVOs have submitted their HYR for the period of October 2019 – March 2020 and seven RVOs have submitted their HYR for the period of April 2020 – September 2020. The RVOs were again advised to submit the HYRs and comply with the provisions of the Rules regarding submission of the HYR at the earliest.

13. Fees structure of the RVOs for an educational course, CEP, training through online mode: The RVOs were required to provide the fee structure for all services including that for CEP and training conducted by the RVOs through online mode. It was noted that only 8 of the RVOs have complied with this requirement. Other RVOs were again requested to upload the fee structure for all services including that for CEP and training conducted through online/offline mode on their websites.

16. Fees charged by RVOs for registering complaints/grievances: It was observed that the Grievance Redressal Policies of some of the RVOs provide for fees of Rupees ten thousand for a stakeholder to file a complaint. It was noted that Rule 16 provides that a complaint may be filed against a registered valuer or registered valuers organisation along with a non-refundable fee of rupees one thousand in favour of the authority.

In view of the above, the RVOs were advised to amend their policies suitably, if at all the policy requires payment of fees for lodging a complaint, it shall not be in excess of what is provided in the Rules for the authority. Further, a complaint will still need to be examined and disposed of on merits even if the requisite fee is not paid by the complainant.

17. RVs conducting valuation not registered with the specified asset class: It has come to the notice of the Board that certain registered valuers have conducted valuation for the asset class in which they were not registered with the Board. The RVOs were requested to examine this and in case there has been such violation, appropriate action may be initiated against the RV under advice to the Board.

18. RVs: Launch of Online registration module: CGM, Rajesh Kumar Gupta apprised that the Board has launched the online module for the registration of RVs. RV division has received queries from the stakeholders regarding the process of online registration. In view of this, a familiarization session will be conducted on January 11, 2021. Further details will be shared by the RV division through email.

36th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON FEBRUARY 08, 2021 AT 12.15 PM

8. Fees charged by RVOs for registering complaints/grievances: The RVOs were requested to charge fee in accordance with the Rules. The RVOs were requested to amend their policies (monitoring/grievance redressal or disciplinary) accordingly. ICAI RVO, ICSI RVO, ICMAI RVO and CEV IAF apprised that their policies do not provide for any fees for registering complaints/grievances. This was appreciated and all RVOs were advised to comply with the provisions of the Rules.

9. RVs conducting valuation not registered with the specified asset class: The RVOs were requested to be vigilant and take appropriate action against their members who had conducted valuation for the asset class in which they were not registered with the Authority. Two such instances had come to the notice of the Authority and this has been taken up with the RVOs for appropriate action. ICMAI RVO, ICSI RVO and CEV IAF apprised that the RVO had scrutinized their records and no such instances had been detected. Other RVOs were requested to provide similar confirmation. The RVOs were urged to have a mechanism for monitoring the activities of their members using tools like inspection, scrutiny of HYR to ensure compliance with the Rules.

12. CEP to be conducted by RVOs under Rule 12(2)(e): In the 35th meeting with MDs/CEOs of RVOs held on 07th January 2021, it was decided that, in compliance with the provisions of Rule 12(2)(e), only the RVOs which have registered valuers as members, shall organise CPE. To avoid any inconvenience to the RVs who have undertaken CPE before this date, it was decided that the RVs that have taken part in CEP before 07th January 2021 will be given CEP credit by the RVOs. Henceforth, only the RVOs which have RVs in the specified asset class shall organise CPE for that asset class.

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