The Insolvency and Bankruptcy Board of India (IBBI) has prescribed the requirements for an individual who is eligible to be a registered valuer under the Companies (Registered Valuers and Valuation) Rules, 2017 (Rules).
As per the circular, the individual shall possess the following requirements : (i) he is a fit and proper person, (ii) has the necessary qualification and experience, (iii) is a valuer member of a Registered Valuers Organisation (RVO), (iv) has completed a recognised educational course as member of an RVO, (v) has passed the valuation examination conducted by the Authority, and (vi) is recommended by the RVO for registration as a valuer.
As a condition of recognition of an RVO under rule 14(c) of the Rules, it shall admit only individuals who possess the educational qualifications and experience requirements, in accordance with rule 4 of the Rules and as specified in its recognition certificate, as valuer members. Clause VI (9) of the Governance Structure and Model Bye-Laws for RVO requires that an RVO shall not enrol an individual as a valuer member if he is not eligible to be registered as a registered valuer with the Authority.
Accordingly, it was clarified that the recognised RVOs are advised to admit only those individuals, who possess the necessary educational qualifications and experience and meet other eligibility requirements, as valuer members. They are also advised to recommend only those valuer members, who have completed the recognised educational course and passed valuation examination of the relevant asset class, to the Authority for registration.
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