New Delhi, January 02, 2018: The Central Government notified the commencement of section 247 (relating to valuers) of the Companies Act, 2013 with effect from 18th October, 2017. It also notified the Companies (Registered Valuers and Valuation) Rules, 2017 on 18th October, 2017.
Vide a notification dated 23rd October, 2017, the Central Government issued the Companies (Removal of Difficulties) Second Order, 2017 to provide that valuations required under the Companies Act, 2013 shall be undertaken by a person who, having the necessary qualifications and experience, and being a valuer member of a recognised valuer organisation, is registered as a valuer with the Authority. Vide another notification on the same date, the Central Government delegated its powers and functions under section 247 of the Companies Act, 2013 to the Insolvency and Bankruptcy Board of India (IBBI) and specified the IBBI as the Authority under the Companies (Registered Valuers and Valuation) Rules, 2017.
These notifications require that with effect from 1st April, 2018, for conducting valuations required under the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016, a person is to be registered with the IBBI as a registered valuer. For registering with IBBI, a person must have necessary qualification and experience, has to be enrolled as a valuer member with a Registered Valuer Organisation (RVO), has to complete a recognised educational course conducted by the RVO, and pass valuation examination conducted by IBBI. A person, who is rendering valuation services under the Companies Act, 2013, may continue to do so without a certificate of registration up to 31st March, 2018.
A registered valuer may conduct valuations under any other law, if required or permitted under that law or the concerned authority.
In pursuance to the Companies (Registered Valuers and Valuation) Rules, 2017, IBBI, being the Authority, recognised on 27th December, 2017 two RVOs, namely, (a) The Institution of Estate Managers and Appraisers in the Asset Class of Land and Building, and (b) The IOV Registered Valuers Foundation in the Asset Classes of: (i) Land and Building (ii) Plant and Machinery, and (iii) Securities or Financial Assets.
IBBI, being the Authority, in pursuance of the first proviso to rule 5 (1) of the Rules specified the details of educational course for the Asset Class of ‘Securities or Financial Assets’ on 30th December, 2017. It has published today such details for the Asset Classes of (a) Land and Building, and (b) Plant and Machinery. These courses shall be delivered by the RVOs in not less than 50 hours.
In pursuance of the rule 5 (3) of the Rules, IBBI, being the Authority, published the syllabus, format and frequency of the valuation examination for the Asset Class of ‘Securities or Financial Assets’ on 30th December, 2017. It has published today such details for the Asset Classes of (a) Land and Building, and (b) Plant and Machinery. A person wishing to be a valuer needs to pass this valuation examination.
The details of educational courses and syllabus of valuation examinations are available on IBBI website www.ibbi.gov.in.