IBBI Registered Valuers Examination: Guidance
THE COMPANIES ACT, 2013 CHAPTER XVII - REGISTERED VALUERS:
Section 247. Valuation by registered valuers.—(1) Where a valuation is required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets (herein referred to as the assets) or net worth of a company or its liabilities under the provision of this Act, it shall be valued by a person having such qualifications and experience and registered as a valuer in such manner, on such terms and conditions as may be prescribed and appointed by the audit committee or in its absence by the Board of Directors of that company. .
(2) Insolvency and Bankruptcy Board of India (IBBI) was appointed as Valuer Registration Authority for section 247 of the Companies Act 2013 on 27th December 2017.
(3).Vide Press Release of IBBI dated 31st December, 2017, a registered valuer may conduct valuations under any other law, if required or permitted under that law or the concerned authority which may be construed a valuer registered by Income-tax Authority can also value for Companies Act 2013 or vice versa?
Insolvency and Bankruptcy Board of India (IBBI) Registered Registered Valuers under the Company’s Act 2013.
ELIGIBILITY, QUALIFICATIONS AND REGISTRATION OF VALUERS
Rule 3. Eligibility for registered valuers.─ (1) A person shall be eligible to be a registered valuer if he:
(a) is a valuer member of a registered valuers organisation;
Explanation.─ For the purposes of this clause, “a valuer member” is a member of a registered valuers organisation who possesses the requisite educational qualifications and experience for being registered as a valuer;
(b) is recommended by the registered valuers organisation of which he is a valuer member for registration as a valuer;
(c) has passed the valuation examination under rule 5 within three years preceding the date of making an application for registration under rule 6;
(d) possesses the qualifications and experience as specified in rule 4;
(e) is not a minor;
(f) has not been declared to be of unsound mind;
(g) is not an undischarged bankrupt, or has not applied to be adjudicated as a bankrupt;
(h) 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;
(i) 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;
(j) 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 (k) is a fit and proper person:
(j) 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
(k) 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.
(2) No partnership entity or company shall be eligible to be a registered valuer if:
(a) it has been set up for objects other than for rendering professional or financial services, including valuation services and that in the case of a company, it is not a subsidiary, joint venture or associate of another company or body corporate;
(b) it is undergoing an insolvency resolution or is an undischarged bankrupt;
(c) all the partners or directors, as the case may be, are not ineligible under clauses (c), (d), (e), (g), (h), (i), (j) and (k) of sub-rule (1);i.e coloured supra
(d) three or all the partners or directors, whichever is lower, of the partnership entity or company, as the case may be, are not registered valuers; or
(e) none of its partners or directors, as the case may be, is a registered valuer for the asset class, for the valuation of which it seeks to be a registered valuer.
Rule 4. Qualifications and experience.─ An individual shall have the following qualifications and experience to be eligible for registration under rule 3, namely:-
(a) post-graduate degree or post-graduate diploma, in the specified discipline, from a University or Institute established, recognised or incorporated by law in India and at least three years of experience in the specified discipline thereafter; or
(b) a Bachelor’s degree or equivalent, in the specified discipline, from a University or Institute established, recognised or incorporated by law in India and at least five years of experience in the specified discipline thereafter; or
(c) membership of a professional institute established by an Act of Parliament enacted for the purpose of regulation of a profession with at least three years’ experience after such membership and having qualification mentioned at clause (a) or (b).
Explanation-I.─ For the purposes of this clause the ‘specified discipline’ shall mean the specific discipline which is relevant for valuation of an asset class for which the registration as a valuer or recognition as a registered valuers organisation is sought under these rules. Explanation-II.─ Qualifying education and experience and examination or training for various asset classes, is given in an indicative manner in Annexure–IV of these rules.
A. M. Ibrahim. B. Arch, FIV, FICA. Mediator
Disclaimer: The study materials, Syllabuses, Model Question Papers (Land & Buildings, Plant & Machinery and SFA valuation) are retrieved on 22 June 2019 from the https://www.ibbi.gov.in/