The Insolvency and Bankruptcy Board of India has published the syllabus, format and frequency of the valuation examination for the three asset classes of “securities or financial assets”, “land and building” and “plant and machinery”. A person seeking to become a “valuer” requires to clear valuation examination in the respective area. These courses shall be delivered by Registered Valuers Organisations in not less than 50 hours.
The Central Government had 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 having the necessary qualifications and experience and being a “valuer member” of a recognised valuer organisation, is registered as a “valuer” with the IBBI. A registered “valuer” may conduct valuations under any other law, if required or permitted under that law or the concerned authority.
With effect from 1st April 2018, it is mandatory for a “valuer” to be registered with the IBBI as a registered valuer. Notifications to this effect were issued by the Government of India under the Companies Act, 2013, and the Insolvency and Bankruptcy Code, 2016. A person currently rendering valuation services under the Companies Act, 2013, may continue without a certificate of registration up to 31st March 2018.
The IBBI had earlier on 27th December 2017 recognised two Registered Valuers Organisations, “the Institution of Estate Managers and Appraisers” in the asset class of “land and building” and “the IOV Registered Valuers Foundation” in all three asset classes of “land and building”, “plant and machinery” and “securities or financial assets”.
It is a pre-requisite before registering with the IBBI that the valuer must fulfil four pre-requisite conditions of:
a. Must have necessary qualification and experience
b. Enrolled as a valuer member with a Registered Valuer Organisation (RVO)
c. Complete a recognised educational course conducted by the RVO
d. Pass valuation examination conducted by IBBI
The details of educational courses and syllabus of valuation examinations are available on IBBI website www.ibbi.gov.in.
Ministry of Corporate Affairs