Quick Queries on Register Valuer and Valuation
Question 1 .Scope of person who have qualified as Register Valuer u/s 247 of Companies Act, 2013?
Answer: A valuer shall conduct valuation required under the Act as per these rules and he may conduct valuation as per these rules if required under any other law or by any other regulatory authority.
Valuation report of Register valuer qualified under Section 247 is applicable on valuation under following Laws:
I. Valuation under Companies Act, 2013
II. Valuation under Insolvency Code: Under Insolvency Code and Insolvency and Bankruptcy Board of India Regulations, 2016 – Registered Valuer means a person registered as such in accordance with the Companies Act, 2013 and rules made there under
III. Valuation under SEBI : Under SEBI (REIT and InvIT) Regulations, 2016 “valuer” means any person who is a “registered valuer” under section 247 of the Companies Act, 2013 and who has been appointed by the manager to undertake valuation of the REIT assets
Question 2. Date from which Section and Rules of Register Valuer and Valuation came into effect.
Answer: Section 247 of the Act has now come into force w.e.f. 18th October, 2017.
Question 3. A person rendering valuation services as on date whether he can continue to provide valuation serviced without complying the condition of this chapter or not?
Answer: Yes, as per Rule 11 Any person who may be rendering valuation services under the Act, on the date of commencement of these rules, may continue to render valuation services without a certificate of registration under these rules up to 31st March, 2018.
Therefore, w.e.f. 31.03.2018 he shall not be eligible to provide the valuation services without fulfilling the condition mentioned under these Rules.
Question 4. Who is the authority to function under these rules?
Answer: The CG has delegated the powers to IBBI to function as authority under these rules.
Question 5. Whether a unregistered partnership firm can apply for the register valuer?
Answer: No, an unregistered partnership firm can’t apply for the same.
Only a “partnership entity” means a partnership firm registered under the Indian Partnership Act, 1932
Question 6. Mandatory condition to become Register Valuer.
Answer: There are three mandatory conditions to become register valuer:
i. Education Qualification (as per rule 4)
ii. Experience (as per rule 4)
iii. Passing of Valuation examination (as per rule 5)
Question 7. Whether there is any time period of making of application for register valuer after passing of examination?
Answer: Yes, as per Rule 3(1) (c) Person have to make the application for registration as valuer within 30 year of passing of examination.
Question 8. Whether a person resident outside India can become register valuer?
Answer: As per Rule 3(1) (g) only a person resident in India can become register valuer.
Clause (v) of section 2 of the Foreign Exchange Management Act, 1999 ‘a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year’.
Question 9. Whether a Company can be registered as register valuer. If yes, then what are the conditions for registration?
Answer: Yes as per Rule 3(2)(a) a Company can be register as valuer by fulfilling the conditions.
Question 10. Qualification to become register valuer?
Member of ICSI / ICSI / ICWA
Question 11. What is the meaning of Specific discipline?
Answer: Specific discipline which is relevant for valuation of an asset clause for which the registration as a valuer is sought under.
In general language, specific experience in valuation of that particular class of assets in which registration as valuer is applying.
Question 12. Whether there is any limit for appearance for valuation exam?
Answer: An individual may appear for the valuation examination any number of times.
Question 13. What is the Form no. for application as register valuer
Individual: Application shall be made in form A of Annexure II.
Partnership Firm: Application shall be made in form B of Annexure II.
Question 14. How much is the registration Fees?
Individual : Rupees 5,000/-
Partnership : Rupees 10,000/-
Question 15. Whether a register valuer can do valuation of class of assets other than in which he is registered?
Answer: A registered valuer, not conduct valuation of the assets or class(es) of assets other than for which he/it has been registered by the authority
Question 16.Whether a register valuer can transfer its membership one registered valuers organization to another?
Answer: With the prior permission of the authority register valuer can shift its membership from one registered valuers organization to another
Question 17.Time period for maintenance of record of documents after completion of valuation.
Answer: Register valuer shall maintain the record of each assignment undertaken by him for at least three years from the completion of such assignment.
Question 18.Power of the Authority.
Answer: The authority may cancel or suspend the registration of a valuer or recognition of a registered valuers organization for violation of the provisions of the Act
Question 19.Punishment for Contravention of Rules.
Answer: He shall be punishable in accordance with sub-section (3) of section 469 of the Act.
Question 20.Punishment for False statement in Report.
Answer: If in any report, certificate or other document required by, or for, the purposes of any of the provisions of the Act or the rules made there under or these rules, any person makes a statement,—
(a) which is false in any material particulars, knowing it to be false; or
(b) which omits any material fact, knowing it to be material,
he shall be liable under section 448 of the Act.
Question 21. Code of Conduct for Register Valuer.
Question 22.Which is the assets class in which Company Secretaries, Chartered Accountants are allowed to get register as register valuer.
Answer: As per annexure IV, Company Secretarial and Chartered Accountants are allowed to get register as register valuer in the field of “Securities of Financial Assets”.
Question 23. Requirement of Education qualification, experience and Valuation specific education course for valuation of Securities or Financial Assets by member of ICSI / ICAI / ICMA.
i. Education Qualification:
Three years of experience in the discipline.
iii. Courses as per syllabus specified under rule 5 of the Valuation Rules.
In case a partnership entity or company is the registered valuer, allow only the partner or director who is a registered valuer for the asset class (es) that is being valued to sign and act on behalf of it.
(Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at firstname.lastname@example.org).
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.