BYE LAWS

RVO Estate Managers & Appraisers Foundation | IBBI RECOGNISED RVO

RVO Estate Managers & Appraisers Foundation | IBBI RECOGNISED RVO

GRIEVANCE REDRESSAL MECHANISM

OF

RVO ESTATE MANAGERS & APPRAISERS FOUNDATION

Mr. Debashis Kundu

Chairman

Mr. Raj Kumar Banerjee

Member

Mr. Someslal Mukherjee

Member

1. INTRODUCTION

Registered Valuers Organisatioin Estate Managers & Appraisers Foundation RVO ESMA Foundation is a Section 8 company incorporated under the Companies Act, 2013 and recognized by Insolvency and Bankruptcy Board of India (IBBI) under Regulation 13(5) of the Companies (Registered Valuers and Valuation) Rules, 2017 (Rules). RVO ESMA Foundation has adopted the Bye Laws, which are in line with the Model Bye Laws prescribed in the Rules (Bye Laws). In terms of Bye Law 21(1), it is necessary to formulate a Grievance Redressal Policy and constitute a Grievance Redressal Committee for receiving, redressing and disclosing grievances against RVO ESMA Foundation or any member of RVO ESMA Foundation, by any member, any person who has engaged the services of members, any other person as may be provided by the Governing Board. The Governing Board of RVO ESMA Foundation has constituted a Grievance Redressal Committee.

2. DEFINITIONS

2.1 In this policy, unless the context otherwise requires:

(a)RVO ESMA Foundation means Registered Valuers Organisation Estate Managers & Appraisers Foundation ;

(b) Aggrieved means a stakeholder who has filed a grievance with the Committee on failing to get his grievance redressed from the concerned Member or the RVO ESMA Foundation.

(c)Bye Laws of RVO ESMA Foundation‟ means Bye-Laws of RVO ESMA Foundation Registered Valuers Organisation

(d)Rules‟ means the Companies (Registered Valuers and Valuation) Rules, 2017;

(e)Committee‟ means Grievance Redressal Committee of the RVO ESMA Foundations may be constituted by the Governing Board from time to time;

(f)Grievance‟ means written expression by a stakeholder of his suffering on account of conduct of Member enrolled with RVO ESMA Foundation and registered with IBBI as Registered Valuer or RVO ESMA Foundation. The terms grievance ‟and complaint‟ may be used interchangeably.

h)Governing Board‟ means Governing Board as defined under Clause 4 (1)(c) of Bye Laws;

(i)IBBI‟ means the Insolvency and Bankruptcy Board of India; (j)Model Bye Laws‟ means model bye laws as contained in Rules; (k)Committee Member‟ means member of the Committee and includes Chairperson of the said Committee;

(j)Policy means the Grievance Redressal Policy of RVO ESMA Foundation;

(k)Member‟ means individual enrolled with RVO ESMA Foundation.

(l)Stakeholder‟ means any member of the RVO ESMA Foundation; any person who has engaged the services of the concerned member of the RVO ESMA Foundation; or any other person or class of persons as may be provided by the Governing Board.

2.2 The words and expressions used and not defined in this Policy, but defined in the Rules, shall have the same meaning as assigned to them in the Rules.

The Organisation have a committee to address grievance redressal

Mr. Debashis Kundu

Chairman

Mr. Raj Kumar Banerjee

Member

Mr. Someslal Mukherjee

Member

3. Objective

3.1. The purpose of this Policy is to set forth the policies and procedures to be followed in receiving, handling and responding to any grievance against members.

3.2. To provide fair and equal treatment to all subscribers without bias at all times.

3. 3. To ensure that all issues raised by complainant are dealt with courtesy and resolved in stipulated timelines.

3.4. To develop an adequate and timely organizational framework to promptly address and resolve Grievances fairly and equitably.

3.5.To provide enhanced level of satisfaction.

3.6. To provide easy accessibility to the Complainant for an immediate Grievance redressal.

3.7. To put in place a monitoring mechanism to oversee the functioning of the Grievance Handling Policy.

4. How to raise the grievance

4.1The complaint should be lodged with the organization as per the prescribed manner by the complainant at the earliest within the reasonable time but not later than 60 days from the date of occurrence.

However, the said time limit can be extended by the said committee if sufficient ground is shown by the complainant up to the satisfaction of the committee.

In this regard the decision of the said committee is final.

Grievances shall be communicated in the prescribed format (Annexure I or II as the case may be).

The grievance(s) should be submitted through the following modes:

I] Email:

The subscriber may write toi_esma@yahoo.co.in

II] Subscriber may raise the grievance by writing us to the following address:

Grievance Redressal Officer Organizations

House No.208,Block-HB

Salt lake City

Kolkata-700097

Branches of this organization:

Visit any branch to register complaints either in the Complaint Register available at all branches or directly with Grievance Redressal Official of the branch.

4.2 Any complaint against a member alleging professional or other misconduct shall be filed, in such format as may be prescribed by RVO ESMA Foundation, disclosing the identity of the person filing the complaint, along with all the relevant documents, in triplicate and addressed to RVO ESMA Foundation either in person or by registered/speed post. A scanned copy of the complaint along with the annexure(s) shall also be provided by way of electronic means to RVO ESMA Foundation. The complainant shall certify that the hard copy of the complaint is the exact replica of the complaint filed in the electronic form. A complaint shall be deemed to have been received on the day when the complaint, cured of all defects, is received in both the above formats.

4.3A stakeholder, who wishes to file a grievance, shall file it with the RVO ESMA Foundation in Annexure I or II along with a demand draft/Cheques/Pay order/Bank transfer of Rs. 5000/-( Five Thousand rupees) drawn in favour of the RVO ESMA Foundation payable at Kolkata.

5. Acknowledgements

An acknowledgement shall be sent to the complainant within three working days of the receipt of the grievance. Acknowledgement shall contain Date of receipt of complaint/grievance, Unique Grievance Number, Expected date for resolution of grievance, Name, Designation and Contact details of Officer, and manner and mode of tracking resolution of grievance/complaint with the Unique Grievance Number.

6. Redressal of Grievance

6.1.The complaint letter / email should contain the Application number/ other relevant reference number, Complainants name, address and contact details, copies of supporting documents, wherever applicable.

6.2. All the complaints shall be registered in the Grievance Register of the Organization and shall be assigned a unique reference number.

6.3The complaint shall be redresses as early as possible and within a maximum of 30 days of the receipt of the complaint.

6.4The Committee, after examining the grievance, and the facts associated with it shall take a decision recording the reasons thereof and may:

i)Dismiss the grievance if it comes to conclusion that the grievance is devoid of merit by recording its reasons briefly, or

ii) Refer the matter to the Disciplinary Committee, if deemed appropriate, or

iii) Direct the parties to seek mediation as a means of redressal of grievance.

The Grievance Redressal Committee shall refer the matter to Disciplinary Committee Whenever the grievance warrants disciplinary action.

If the member of the said committee thinks it proper to settle the grievance by way of conciliation between the parties, the said committee will hear both the parties on a date fixed after giving reasonable opportunity to place their grievances and will try to find out mediation mechanism to redress the grievances. In that event the said committee will pass appropriate order, which will be binding upon both the parties. Both parties will have a maximum of 7 (seven) working days from the date of receipt of communication to decide whether or not to take part in the mediation process.

6.5. Provision of a report of the grievance and mediation proceedings to the parties to the grievance upon dismissal or resolution of the grievance.

6.6 The decision of the said committee either in case of dismissal of grievance or resolution of the grievance will be communicated to the complainant and concerned parties within the 7 working days said above.

7. Closure of grievance:

7.1Every grievance shall be disposed off within a period of thirty days of its receipt and a final reply shall be sent to the complainant, containing details of resolution or rejection of the complaint, with reasons thereof recorded in writing.

7.2 A grievance shall be considered as disposed off and closed in any of the following instances, namely:

i]if the aggrieved has not responded within fifteen (15) working days of the receipt of any written communication from Grievance Redressal Officer seeking further details/clarification;

ii) Where the aggrieved has withdrawn his/her grievance;

iii) Where the matter has been referred by the Committee to Disciplinary Committee of RVO ESMA Foundation;

iv) Where the Committee has dismissed the grievance if it is felt to be devoid of merit;

v) Where the subject matter of grievance is pending before a court, tribunal etc.

vi) Where the grievance has been resolved during the mediation proceedings.

8. Action to be taken in case of malicious or false complaints

8.1In case the said Committee, on investigation of the complaint, finds that a false complaint has been made or that a complaint has been made with a malicious intent, the Committee shall take such reasonable steps forthwith as they deem necessary to curb the initiation of such false and malicious complaints. The decision of the said committee is final in this regard.

8.2 A mere inability to provide adequate proof to substantiate the complaint shall not be construed as false and malicious complaint.

9.PERIODIC REVIEW OF GRIEVANCE REDRESSAL MECHANISM

The Grievance Redressal Mechanism will be monitored and reviewed by the Grievance Redressal Committee at quarterly intervals and bi-annually by the Governing Board of RVO.

The Policy may be amended from time to time by the Governing Board and will remain in force till further instructions of the Governing Board.

10.Maintenance of Records

The Committee shall preserve records in physical or digital pertaining to grievance/complaint received, resolution and closure of the grievance for 8 years.

ANNEXURES Annexure-I

GRIEVANCE REDRESSAL FORMAT

(In case of Member)

To,

The Grievance Redressal Committee,

House No.208,Block-HB

Salt lake City

Kolkata-700097

Details of the aggrieved

1. Name of the aggrieved:

2. Designation (if any) of the aggrieved:

3. Registration Number (if any):

4. Identity of the aggrieved: Aadhar No

5. Complete address for correspondence with the aggrieved (along with Email ID and Mobile No.):

6. Relationship, if any, with the Member against whom the grievance is lodged. Please specify details):

Details of Member against whom grievance redressal is sought

7. Name of Member:

8. Registration Number (if any):

9. Name of the Entity (if any):

10. Complete address for correspondence with the aggrieved (along with Email ID and Mobile No.):

Details of the grievance

11. Brief nature of the grievance

12. Details of the conduct of Member that has caused the suffering to the aggrieved including date of occurrence of grievance:

13. Details of suffering, whether pecuniary or otherwise, the aggrieved has undergone:

14. How the conduct of Member has caused the suffering of the aggrieved:

15. Details of his efforts to get the grievance redressed from Member as the case may be and why the response, if any, of the Member is not satisfactory.

16. Relevant Sections of the Act/ Rule which are violated:

17. Details of Payment of Fee:

18. Nature of remedy sought:

19. Any other relevant information:

20. Supporting documents to the grievance, if any (Please provide as annexures to this form)

Verification

I,____________________ the aggrieved, do hereby declare that what is stated above is true to the best of my knowledge and belief. I also declare that subject matter of grievance raised above is not pending before any court, tribunal etc.

Verified today the _____________ day of _____________, 20____ at _________

Date:

Name and Signature of the Aggrieved Place:

NOTE:

1. Only a grievance against Member enrolled with RVO ESMA Foundation should be submitted.

2. The grievance and its enclosures should be filed in triplicate, duly signed by the aggrieved and should be in English language. Any documents in Hindi or in any Regional Language should be sent along with English translation thereof, duly verified as true copy‟.

ANNEXURES Annexure-II

GRIEVANCE REDRESSAL FORMAT

(In case of RVO)

To ,

The Grievance Redressal Committee,

House No.208,Block-HB

Salt lake City

Kolkata-700097

Details of the aggrieved

1. Name of the aggrieved:

2. Designation (if any) of the aggrieved:

3. Registration Number (if any):

4. Identity of the aggrieved: Aadhar No

5. Complete address for correspondence with the aggrieved (along with Email ID and Mobile No.):

6. Details of the grievance

7. Details of the conduct of RVO ESMA Foundation that has caused the suffering to the aggrieved including date of occurrence of grievance:

8. Details of suffering, whether pecuniary or otherwise, the aggrieved has undergone:

9. Any other relevant information

10. Supporting documents to the grievance, if any (Please provide as annexures to this form)

Verification

I,____________________ the aggrieved, do hereby declare that what is stated above is true to the best of my knowledge and belief. I also declare that subject matter of grievance raised above is not pending before any court, tribunal etc.

Verified today the _____________ day of _____________, 20____ at _________

Name and Signature of the Aggrieved

Date:

Place:

NOTE:

1. Only a grievance against RVO ESMA Foundation should be submitted.

2. The grievance and its enclosures should be filed in triplicate, duly signed by the Aggrieved and should be in English language. Any documents in Hindi or in any Regional Language should be sent along with English translation thereof, duly verified as true copy‟.

Disciplinary Policy

Of

RVO Estate Managers & Appraisers Foundation

Contents

1. Preamble

2. Objective

3. Making a Complaint

4. Initial Assessment

5. Show Cause Notice to the Party

6. Rights and Obligations of the parties

7. Hearing

8. Order by the Disciplinary Committee

9. Appeal

Preamble

As per RVO Estate Mangers & Appraisers Foundation may initiate disciplinary proceedings by issuing a show-cause notice against members

a. based on a reference made by the Grievances Redressal Committee;

b. based on monitoring of members;

c. following the directions given by the IBBI or any Court of Law; or

d. suo moto, based on any information received by it.

Objective

The Disciplinary Policy of (RVO Estate Mangers & Appraisers Foundation) provides for the following:

a. the establishment of a Disciplinary Committee and an Appellate Committee

b. the manner in which the Disciplinary Committee may ascertain facts

c. the issue of show cause notice based on the facts

d. disposal of show- cause notice by a reasoned order, following principles of natural justice

e. timelines for different stages of disposal of show-cause notice

f. rights and obligations of parties to the proceedings

The Organisation may initiate disciplinary proceedings by issuing a show-cause notice against members-

(a) based on a reference made by the Grievances Redressal Committee;

(b) based on monitoring of members;

(c) following the directions given by the authority or any court of law; or

(d) suo moto, based on any information received by it. In that event reason for initiation of such proceedings should be recorded.

The Organisation have a Disciplinary Committee, having the following members. ( here in after refered to as the said committee in short)

Mr. Subrato Dutt

Independent Director

Chairman

Mrs. Susmita De Member

Mr. S. N. Mishra Member

The Organisation have a Disciplinary Policy, which shall provide for the following

The

(a) The said committee will initiate the facts finding process by considering the relevant documents.

(b) The said committee will issue of show-cause notice based on the facts upon the member against whom the complaint is lodged, asking him to reply to the show cause within a period of fortnight.

(c) Disposal of the reply to the show-cause notice by a reasoned order, following principles of natural justice. In this regard the concern member should be given an opportunity of being heard by following the principle of natural justice.

(d) The disposal of show cause notice will be made within a period of 4 weeks from the date receipt of the reply to the show cause notice.

(e) While conducting the disciplinary proceedings by the said committee, the disciplinary committee will hear all the concerned parties by an giving opportunity of being heard as per the principles of the natural justice. The committee shall also allow both the parties to rely upon the relevant documents in support of their cases. In any event only the concerned parties would be allowed to represent their cases before the said committee.

(2) After hearing both the parties and considering the relevant documents, relied upon both the parties, the said committee will pass the reasoned order within a period of 4 weeks from the date of conclusion of said proceedings. The said Committee has the power to pass the following orders as it deems fit and proper-

(a) Expulsion of the member;

(b) Suspension of the member for a certain period of time as may be decided by the said committee.

(c) Admonishment of the member.

(d) Imposition of monetary penalty, as may be decided by the said committee.

(e) Reference of the matter to the authority, which may include, in appropriate cases, recommendation of the amount of restitution or compensation that may be enforced by the authority; and

(f) directions relating to costs as may be decided by the said committee.

(3) The Disciplinary Committee shall pass an order for expulsion of a member if it has found that the member has committed-

(a) An offence under any law for the time being in force, punishable with imprisonment for a term exceeding six months, or an offence involving moral turpitude;

(b) A gross violation of the Act, rules, regulations and guidelines issued there under, bye-laws or directions given by the Governing Board which renders him not a fit and proper person to continue acting as a registered valuer.

(4) Any order passed by the Disciplinary Committee shall be placed on the website of the Organisation within seven days from passing of the said order, with one copy each being provided to each of the parties to the proceeding.

(5) Monetary penalty received by the Organisation under the orders of the Disciplinary Committee shall be used for the professional development.

(6) An Appellate Panel will be constituted by the Governing Board,

as here under :

One independent director of the Organisation,

One member each from amongst the persons of eminence having experience in the field of law and field of valuation

One member nominated by the authority.

(2) Any person aggrieved of an order of the Disciplinary Committee may prefer an appeal before the Appellate Panel within thirty days from the receipt of a copy of the final order.

(3) The Appellate Panel shall dispose of the appeal in the manner it deems expedient, within thirty days of the receipt of the appeal.

MONITORING POLICY

Introduction

RVO Estate Managers & Appraisers Foundation (herein after refer to as RVO ESMA Foundation) has framed its Monitoring Policy to monitor the professional activities and conducts of the members strictly as per the provisions of Companies Act, 2013, The Companies( Registered Valuers and Valuation) Rules , 2017 Regulations and guidelines issued there under, as well as our bye-laws and code of conduct.

1 .The objective of the monitoring is to gather necessary information, records and documents to enable the monitoring committee, Governing Board of RVO ESMA Foundation and the Insolvency and Bankruptcy Board of India (IBBI in short) to monitor the performance and keep them informed with unbiased decision about the performance of our Registered Valuer Members.

2 . The Monitoring Committee will design and implement an appropriate check list and evaluation format to calculate 'overall compliance point index' which shall determine the degree of compliance with respect to provision of the act, rules, regulation, guidelines, byelaws, the Code of Conduct and the directions given by the Governing Board.

3. Definitions

1. In this Policy, unless the context otherwise requires:

(a) "Act" means the Companies Act 2013;

(b) "Appellate Panel" means the authority constituted by the Governing Board of RVO ESMA Foundation under clause 25 of the Bye-Laws of RVO ESMA Foundation;

(c) "Authority" means the Insolvency and Bankruptcy Board of India (IBBI);

(d) "Committee" means the Disciplinary Committee constituted by the Governing Board of the Agency in terms of clause 8(1)(d) of the Bye-Law of RVO ESMA Foundation;

(e) Disciplinary Proceeding" means the proceedings under this Policy;

(f) "Partnership entity" means a partnership firm registered under the Indian Partnership Act, 1932 (9 of 1932) or a limited liability partnership registered under the Limited Liability Partnership Act, 2008 (6 of 2009);

(g) "Governing Board" means the Board of Directors of RVO ESMA Foundation constituted under clause 4 of the Bye-Laws of RVO ESMA Foundation;

(h) "Organisation" means the RVO ESMA Foundation Organisation (RVO ESMA Foundation), a section 8 Company, registered with Insolvency and Bankruptcy Board of India;

(i) "Bye-Laws" means Bye-Laws of the RVO ESMA Foundation Organisation ( RVO ESMA Foundation) based on the Companies (Registered Valuers and Valuation) Rules, 2017 (Model Bye-Laws of Registered Valuers Organisation);

(j) "IBBI" means the Insolvency and Bankruptcy Board of India established under section 188 of the Insolvency and Bankruptcy Code, 2016;

(k) "Misconduct" means misdemeanour or other wrong doing or behaviour deemed to be inappropriate or unbecoming of a Registered Valuer or such other action or omission as barred under the Code of Conduct and dealt with in Section 12 of this Policy. This is further categorized as "Minor" and "Major" misconduct.

(l) "Policy" means the Disciplinary Policy of RVO ESMA Foundation;

(m) "Member" means an individual who is enrolled with RVO ESMA Foundation and registered with IBBI and includes an individual who was a member of RVO ESMA Foundation as on the date of the alleged misconduct;

2. All words and expressions used and not defined in this Policy, but defined in the Act, Companies (Registered Valuers and Valuation) Rules, 2017, shall have the same meaning as assigned to them in the Act.

Members shall submit the information as per the format of RVO ESMA Foundation as given below

  • The monitoring Committee of RVO ESMA Foundation shall review the information and records submitted by the Registered Valuer Members in accordance with the said policy.

4. Framework

4.1 Information to be submitted

The Registered Valuers are required to report each assignment of a listed entity undertaken under the Companies Act 2013. He shall submit information about ongoing and concluded engagements as a registered valuer, in the manner and format specified by the Organisation, at least twice a year stating inter alia, the date of assignment, name of entity, date of completion and reference number of valuation assignment

The report should, inter alia, also include comments for all engagements being handled, on the following:

- Non adherence to directions/regulation/law, if any, with reasons

- Reasons for slippages in time lines, if any, separately for all cases

The RV/Members shall immediately, submit disclosures to RVO ESMA Foundation in accordance to the Circulars issued by IBBI from time to time of the following:

- Number and status of such engagements being handled by the RV

- Any conflict of interest likely to arise.

The members are also required to inform any changes in professional or personal status like Employment Status, Conviction, Change of Nationality, Suspension or Restoration of registration by IBBI, etc.as and when occurs.

Frequency of Monitoring

Manner / Format of Submission of Information

Bye Law 18 (b) of RVO ESMA Foundation Law states that the Monitoring Policy shall

provide for the manner and form of submission or collection of information

and records of the members, including by way of inspection.

Regulation 16 of RVO ESMA Foundation Laws states that "A member shall submit information, including records of on-going and concluded engagements as Registered Valuer, in the manner and format specified by the organisation, at least twice a year stating inter-alia the date of assignment, date of completion

and reference number of valuation assignment and valuation report."

The half yearly return shall be submitted within 15 days from end of 31 st March and 30th September every year, however, the said member should also inform the status of the assignment if not completed within the stipulated time.

Inspection

The Monitoring Committee may carry out an inspection of a Member's records wherever deemed necessary, with or without prior notice to the member. This function may be delegated to a suitable member(s), where required. The report of the inspection will be put up by the inspecting member(s) to the Monitoring Committee, which would take appropriate steps/action, as warranted.

Obligations to comply with the Monitoring Policy

Every Member(s) will have the following obligations:

1) to comply with the provisions of the Act, Rules, Regulations, Guidelines

issued thereunder, bye-laws, Code of Conduct and directions given by the

Governing Board

2) to maintain record of its on-going and concluded assignments on regular basis

3) to mandatorily submit to RVO ESMA Foundation, the documents, reports etc. as laid

down in the Monitoring Policy

RErere Use, Analysis and Storage of Information and Records

The information collected and the records maintained of the Member(s) shall

be solely for the use and analysis of ESMA RVO Foundation.

ESMA RVO Foundation shall maintain privacy with regard to such information subject to the statutory provisions of submission of information to IBBI or any other authority under the Act for the time being in force.

The information and records may be maintained and stored by RVO ESMA Foundation,

either in physical form or electronically on its database and shall also be

constantly revised and updated as and when any information is received from

the Member(s). having due regard for:

a. ensuring the privacy of members

b. RVO ESMA Foundation confidentiality of information received, except when disclosure of information is required by the Board or by law,

C. in a non-discriminatory,

e

EVALUATION OF PERFORMANCE OF MEMBERS

The Member(s) shall be evaluated in the manner as may be approved by the Committee.

REVIEW OF THE INFORMMATION

reOF INFORMATION AND RECORDS

RVO ESMA Foundation shall review the information and records submitted by the

Member(s)on an on-going basis. Any discrepancies or disqualifications that

may arise during the review process must be addressed to the Committee.

REVIEW OF THE POLICY

REVIEW OF THE POLICY

The implementation of the Policy will be monitored and reviewed by the Committee and the Governing Board at regular intervals.

Format as per the Monitoring Policy of the Members

ANNEXURE-I

Name of the Valuer

Registered Membership

Registration No. of the Valuer

RV Membership no.

Asset Class

Purpose of Valuation

Appointing Authority

Date of Assignment

a)Date of Completion

b) If incomplete, progress of the assignment)

Reference number of Valuation Assignment

Back ground Information of the asset being valued

Expert if any, involved in the Valuation

Date as on which valuation is made

Report Date

Nature and Source of Information

Methodology of valuation adopted

Transaction conducted with the stakeholders during the period of your appointment

Transaction conducted with third parties during the period of your appointment

Outcome of your appointment

Copy of the Valuation report

Remarks or Special note, if any

Further details of your appointment, if any

Date:

Place : Signature of the Valuer

INSPECTION POLICY

1. INTRODUCTION

Following extracts from the Monitoring Policy, as approved by the

Governing Board of RVO Estate Manger & Appraises Foundation, are relevant to understand the requirement to draw an Inspection Policy of the company.

RVO Estate Managers & Appraisers Foundation (herein after refer to as RVO ESMA) has framed its Monitoring Policy to monitor the professional activities and conducts of the members strictly as per the provisions of Companies Act, 2013, The Companies (Registered Valuers and Valuation) Rules , 2017 Regulations and guidelines issued there under, as well as our bye-laws and code of conduct.

1 .1 The objective of the inspection is to gather necessary information, records and documents to enable the monitoring committee, Governing Board of RVO ESMA Foundation and the Insolvency and Bankruptcy Board of India (IBBI in short) to inspect the performance and keep them informed with unbiased decision about the performance of our Registered Valuer Members.

1.2 . The Monitoring Committee is assigned the function to undertake inspection and implement an appropriate check list and evaluation format to calculate 'overall compliance point index' which shall determine the degree of compliance with respect to provision of the act, rules, regulation, guidelines, byelaws, the Code of Conduct and the directions given by the Governing Board.

1.3 In compliance of the aforesaid, the Governing Board of the RVO Estate Managers & Appraisers Foundation, under due intimation and/or approval of the Insolvency and Bankruptcy Board of India, has adopted this Inspection Policy.

1.4 This inspection policy is an integral part of the Monitoring Policy.

2. OBJECTIVE

The objective of Inspection Policy is to ensure that in carrying out the valuation services, the registered valuer members of RVO Estate Managers & Appraisers Foundation comply with the Valuation Standards, Code of Conduct, and relevant provisions of the Act & Rules made there under. In addition, they have proper systems and procedures, including documentation systems, so as to maintain highest standards of quality in the work they perform. The inspections shall also help the RVO ESMA to guide the member to remove its shortcomings, if any.

3. DEFINITIONS

1. In this Policy, unless the context otherwise requires:

(a) "Act" means the Companies Act 2013;

(b) "Authority" means the Insolvency and Bankruptcy Board of India (IBBI);

(c) "Asset Class" means distinct group of assets that have been classified as class of assets by the Insolvency and Bankruptcy Board of India and requires separate set of valuers for valuation under the Companies.

(Registered Valuers and Valuation) Rules, 2017

(d) "Committee" means the Monitoring Committee constituted by the Governing Board of the in terms of clauses of the Bye-Law of RVO ESMA;

(e) "Monitoring Officer" means an Officer of RVO ESMA either appointed or

designated so, who shall perform the functions assigned to the

Monitoring Officer under the Monitoring Policy and Inspection Policy;

(f) "Partnership entity" means a partnership firm registered under the Indian Partnership Act, 1932 (9 of 1932) or a limited liability partnership registered under the Limited Liability Partnership Act, 2008 (6 of 2009);

(g) "Governing Board" means the Board of Directors of RVO ESMA constituted under clause 4 of the Bye-Laws of RVO ESMA;

(h) "Organisation" means the RVO Estate Managers & Appraisers Foundation Organisation (RVO ESMA), a section 8 Company, registered with Insolvency and Bankruptcy Board of India;

(i) "Bye-Laws" means Bye-Laws of the RVO Estate Managers & Appraisers Foundation ( RVO ESMA) based on the Companies (Registered Valuers and Valuation) Rules, 2017 (Model Bye-Laws of Registered Valuers Organisation);

(j) "IBBI" means the Insolvency and Bankruptcy Board of India established under section 188 of the Insolvency and Bankruptcy Code, 2016;

(k) "Code of Conduct" means the code of conduct for the registered valuer as written

(l) "Policy" means the Disciplinary Policy of RVO ESMA;

(m) "Registered Valuer Member" means an individual who is enrolled with RVO ESMA and registered with IBBI and includes an individual who was a member of RVO ESMA as on the date of the alleged misconduct;

(n) "Partnership entity" means a partnership firm registered under the Indian Partnership Act, 1932 (9 of 1932) or a limited liability partnership registered under the Limited Liability Partnership Act, 2008 (6 of 2009);

(o) "Rules" mean the Companies (Registered Valuers and Valuation) Rules, 2017 as amended from time to time;

(p) "Valuation Standards" means the standards of valuation as notified or modified by the Central Government under Rule 18 of the Companies (Registered Valuers and Valuation) Rules, 2017;Provided that until the valuation standards are notified or modified by the Central Government, the valuation standards would mean the standards of valuation adopted by the RVO Estate Managers & Appraisers Foundation ( RVO ESMA);

(q) "Registered Valuers Organisation (RVO)" means a legal entity recognized as registered valuers organization by the Insolvency and Bankruptcy Board of India under Rule 13 of the Companies (Registered Valuers and Valuation) Rules, 2017;

All words and expressions used and not defined in this Policy, but defined in the Act, Companies (Registered Valuers and Valuation) Rules, 2017, shall have the same meaning as assigned to them in the Act. "RVO ESMA" means the RVO Estate Managers & Appraisers Foundation duly incorporated as section 8 companies under the Companies Act, 2013 with its registered office at House number 208, Block HB, Salt Lake and recognized as registered valuers organization by the Insolvency and Bankruptcy Board of India under Rule 13 of the Companies (Registered Valuers and Valuation) Rules, 2017.

(r) "Registered Valuer" means a person who has been granted certificate of registration by the authority under Rule 6 of the Companies (Registered Valuers and Valuation) Rules, 2017 and has been granted certificate of practice by the RVO ESMA in respect of valuation of an asset class or classes and the term "valuer" shall be construed accordingly.

(s) "Registered Valuer Member" means a person who possesses the required qualification and experience as per Rule 4 of the Companies (Registered Valuers and Valuation) Rules, 2017 and has completed the mandatory educational course as a student member of the RVO ESMA in respect of valuation of an asset class or classes;

Unless the context otherwise requires, words and expressions used but not defined in this policy shall have the meanings respectively assigned to them in the Companies Act, 2013 (18 of 2013) and Rules made there under.

4. COMPLIANT STATUS

In the Monitoring Policy, it is said that based on the records submitted by the registered valuer members, the Monitoring Committee will evaluate the performance of the members and categorize them into three categories:-

  • Category A - Compliant: Members submitting the information regularly and fully complying with the provisions of the Act, rules, regulations, and guidelines issued there under, and the bye-laws, the Code of Conduct, and directions given by the Governing Board.
  • Category B - Non-Compliant: Members who are not filing any information with the Monitoring Committee at all are considered as Non-Compliant.

5. COVERAGE & EFFECTIVE DATE

The Inspection Policy shall be implemented from the first day of April, 2020.

This will be introduced in stages, At first stage, registered valuer members who have been categorized as "Non-Compliant" shall be selected for inspection on a random sample basis. Second & final stage will include members that are fully "Compliant" as per the Monitoring Committee.

It is proposed to cover following number of registered valuer members under the stated inspections over a period of five years:

· Non-Compliant cases - 100 percent

· Fully Compliant cases - 5 percent (random survey)

The Monitoring Committee shall decide the names of practicing registered valuer members belonging to each asset class to be included in the final selection list of each year. Efforts would be made to ensure that each registered valuer member who is presently 'non-compliant' is subjected to inspection at least once in five years and is brought to the fully compliant category. Further, the Committee shall ensure that all other members having substantial scale of practice and handling important valuation The Monitoring Committee shall decide the names of practicing registered valuer members belonging to each asset class to be included in the final selection list of each year. Efforts would be made to ensure that each registered valuer member who is presently 'non-compliant' is subjected to inspection at least once in five years and is brought to the fully compliant category. Further, the Committee shall ensure that all other members having substantial scale of practice and handling important valuation.

The inspection may vary from above in case of the followings:

(a) Review of the information / documents received from the registered valuer members;

(b) Any information received from other stakeholders and regulators;

(c) Any information received from the third party sources; and

(d) On the direction of the Governing Board of RVO ESMA and/or from the IBBI.

(e) Any order/direction from any competent Court of Law.

6. PERIOD OF INSPECTION

The period of inspection shall be

a) In case of a member with registration more than three years old, period of inspection shall be from the end-date covered under the last inspection till end of preceding completed financial year; or preceding three years, whichever is less.

b) In case of a member with registration less than three years old, period of inspection shall be from the date of registration till end of preceding completed financial year. Provided that no part of the reports, records and documents relating to the valuation assignments completed on or before the date of registration shall be subject to inspection and review.

Note: No registered valuer member shall be selected for inspection if he/she is in practice for less than one year.

7. SCOPE OF INSPECTION

The stated Inspection process shall apply to all the Valuation Services provided by a member as registered valuer under the provisions of Companies Act, 2013 and Rules made thereunder.

Once a registered valuer member is selected for inspection, its valuation engagement records and compliance records pertaining to the period of inspection shall be subjected to inspection.

The inspection shall cover:

• Compliance with the provisions of the Act, rules, regulations, and guidelines issued thereunder;

• Compliance with the Bye-Laws, the Code of Conduct, and directions given by the Governing Board of RVO ESMA;

• Compliance with Valuation Standards;

• Systems and procedures for conducting valuation engagements

• Quality of reporting; and

• Training programmes for staff concerned with valuation functions, including availability of appropriate infrastructure.

8. COMPOSITION OF INSPECTION TEAM

Monitoring Policy provides that the Monitoring Committee may direct the inspection to be carried out by any

• Member of the Committee, or

• Officer of RVO ESMA, or

• Member of the Governing Board of RVO ESMA, or

• Other professional valuer member(s),

Either individually or jointly with other members or officers in any manner as determined by the Monitoring Committee.

It is hereby set out that the officer of RVO ESMA who may be assigned the job to carry out inspection of any registered valuer member shall not be of the rank below level-IV.

It is further set out here that the other professional valuer member(s) must

(i) Be the registered valuer member of RVO ESMA;

(ii) Possess at least ten years of experience of valuation [including the period before registration with IBBI];

(iii) Be currently in the active practice of valuation in respect of asset

class (es) for which he is undertaking inspection assignments;

For undertaking inspections, a valuer member should not have

(i) Been declared to be of unsound mind;

(ii) Been an un discharged bankrupt or applied to be adjudged as a bankrupt;

(iii) Been a non-resident person in India;

(iv) Any disciplinary or criminal action/proceedings pending against him;

(v) Been found guilty by the Disciplinary Committee or Governing Board of RVO ESMA or by the IBBI;

(vi) 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;

(vii) Been levied a penalty under section 271J of Income Tax Act, 1961;

(viii) Been imposed any warning or penalty or strictures against him by the competent authority; or

(ix) Been categorized as semi-compliant or non-compliant by the Monitoring Committee of RVO ESMA.

Any valuer member empanelled for undertaking inspection on behalf of RVO ESMA shall

(i) undergo requisite training as prescribed by the Monitoring Committee of RVO ESMA;

(ii) furnish the prescribed declaration at the time of accepting any inspection assignment; and

(iii) sign the prescribed Deed of Confidentiality.

  • The Monitoring Committee shall maintain a panel of eligible and willing registered valuer member(s) who offer themselves to be considered for part of the inspection team of RVO ESMA. The panel shall be valid for a period of two years and made public on the company's website.
  • A registered valuer member shall not accept any professional assignment from another registered valuer member whose records have been inspected by him for a period two years from the date of appointment.

9. REPORTING

On completion of a inspection visit to the registered valuer member, the Team shall submit its report to the Monitoring Officer setting out the scope of the inspection, the extent to which the registered valuer member complied with the terms of reference of team and relevant law and practice and other legislation, the extent to which professional competence has been tested and achieved and any other information which the Inspection Team would like to add in the report.

As part of the record, the Inspection Report shall contain the following information:

a) Details of entity and registration of its proprietor/partner(s)/ director(s) with the IBBI;

b) Details of staff kept by the Member during the period of inspection;

c) Details of office systems and procedures with regard to compliance with the provisions of the Act, rules, regulations, and guidelines issued thereunder; or compliance with the Bye-Laws, the Code of Conduct, and directions given by the Governing Board of RVO ESMA;

d) Details of training program for the staff with valuation functions;

e) Whether the Registered Valuer Member fully cooperated with the Inspection Team; and

f) Whether he allowed complete and free access to RVO ESMA inspection team to undertake inspection of his information and records;

The Inspection Team shall examine and answer each of the following points with supportive reasons. If the answer to any issue is negative, the report shall contain the nature of shortcomings and also suggest steps to remove them within a reasonable period.

a) Whether the Registered Valuer Member has regularly filed necessary reports and returns with the RVO ESMA;

b) Whether the Registered Valuer Member has conducted valuations only in respect of those assets or asset class(es) for which he is registered with the IBBI;

c) Whether the Registered Valuer Member has, while undertaking valuation assignments, fully adhered with the applicable provisions of Companies Act, 2013;

d) Whether the Registered Valuer Member has fully adhered with the conditions of registration set-out in Rule 7 of the Companies (Registered Valuers and Valuation) Rules, 2017;

e) Whether the Registered Valuer Member has, while undertaking valuation assignments, fully complied with the Valuation Standards as required under Rule 8(1) of the Companies (Registered Valuers and Valuation) Rules, 2017;

f) Whether the Registered Valuer Member has, while undertaking valuation assignments, fully complied with the provisions of Rule 8(2) & (3) of the Companies (Registered Valuers and Valuation) Rules, 2017;

g) Whether the Registered Valuer Member has maintained all the reports, records and documents relating to valuation assignments for the prescribed period of three years from the completion of each such assignment as required under Rule 7(f) of the Companies (Registered Valuers

and Valuation) Rules, 2017;

h) Whether the Registered Valuer Member as fully complied with the Code of Conduct of RVO ESMA; if not, state the clauses thereof violated;

Note: The Inspection Team is required to give its observations/ comments on adherence by the Registered Valuer Member separately with each clause of the Code of Conduct.

i) Whether, during the period of inspection, the Registered Valuer Member has temporarily surrendered / restored his membership with the RVO ESMA

in compliance with the provisions of Rule 9 of the Companies (Registered Valuers and Valuation) Rules, 2017;

j) Whether, during the period of inspection,

a. Any complaint was received against the Registered Valuer Member with respect to the:

i. Valuation engagements;

ii. Non-compliance with the regulatory provisions under any law; or

iii. General conduct of the Registered Valuer Member with his clients & other stakeholders.

b. Any Valuations were challenged in any Court;

c. Any warnings or penalties or strictures were imposed by the competent authority;

d. Any Disciplinary proceedings were initiated against the member;

e. Any legal action was initiated against the member;

f. He was conviction for an offence;

g. Any criminal proceedings are pending against the member;

h. He has applied or declared as un-discharged bankrupt.

k) Whether the Registered Valuer Member has satisfactory mechanism in place for redressal of all grievances received; also provide the following details:

i. Number of grievances received and disposed off;

ii. Nature/type of grievances received;

iii. Average period of disposal of grievances; and

iv. Percentage of cases where any grievance was readdressed by the complainant

l) In case a partnership entity or company is the registered valuer, whether only the partner or director who is a registered valuer for the asset class(es) that were valued was allowed to sign and act on behalf of it;

m) In case a partnership entity or company is the registered valuer, whether it disclosed to the company concerned, the extent of capital employed or contributed in the partnership entity or the company by the partner or director, as the case may be, who

signed and acted in respect of relevant valuation assignment for the company;

n) In case a partnership entity or company is the registered valuer, whether it immediately informed the authority on the removal of a partner or director, as the case may be, who was a registered valuer along with detailed reasons for such removal; and

o) Any other issue considered important by the inspection team.

10. OBLIGATIONS OF THE REGISTERED VALUER MEMBERS

Any registered valuer member selected for inspection shall

(i) Produce to the inspection team or allow access to, any record, document or prescribed register maintained by the member or any other record or document which is of a class or description so specified, and which is in the possession or under the control of the member;

(ii) Provide to the inspection team such explanation or further particulars in respect of anything produced in compliance with a requirement under sub clause (i) above, as the inspection team shall specify; and

(iii) Provide the inspection team all assistance in connection with inspection;

Where any information or matter relevant to a registered valuer member is recorded otherwise than in a legible form, the member shall provide and present to the inspection team a reproduction of any such information or matter, or of the relevant part of it in a legible form, with a translation in English or Hindi if the matter is in any other language, and if such translation is requested for by the inspection team.

The registered valuer member shall, within 30 days of receipt of the bills from the inspection team, pay to the inspection team the cost of inspection including the out of pocket expenses as decided by the Monitoring Committee.

11. OBLIGATIONS OF THE INSPECTION TEAM

The inspection team shall, while undertaking inspection of a registered valuer member, shall strictly comply with the terms of reference assigned to it as part of its appointment.

The inspection team shall not take any extracts of the registered valuer member 'Clients' file or records examined by the team while conducting inspection, as a part of his working papers.

The inspection team shall complete the inspection within the prescribed time frame.

The inspection team shall raise bills to the registered valuer member covering the cost of inspection and out of pocket expenses as decided by the Monitoring Committee.

12. COST OF INSPECTION

The cost of inspection including the limit of out of pocket expenses payable to the inspection team shall be decided by the Monitoring Committee from time to time and shall be paid by the registered valuer member. The amount shall be paid by the registered valuer member within 30 days of receipt of the bills from the inspection team.

13. FUNCTIONS OF THE MONITORING COMMITTEE

The Inspection Reports shall be received and analyzed by the Monitoring Officer. He shall prepare [or cause to prepare] summary of all the inspect reports received during a quarter for onward submission to the Monitoring Committee. The Monitoring Committee shall review the summary reports and give such directions as deemed necessary.

As set out in the Monitoring Policy, the Monitoring Committee will take reasonable steps in seeking to confirm compliance on the part of Registered Valuer Members with all relevant aspects of the Act, Rules, Regulations, and Guidelines issued under the Act, and other legislations that may impact an individual while acting as Valuation Professional. The above includes the requirements of Code of Conduct prescribed under the Companies (Registered Valuers and Valuation) Rules, 2017 which have been

adopted by the RVO ESMA.

The Monitoring Committee, wherever necessary, refer the matter to the Disciplinary Committee for appropriate action in case of such Registered Valuer Member

who are found to be perennial defaulters.

14. REPORTS TO THE AUTHORITY

The Monitoring Committee shall submit a report to the authority in the manner specified by the authority with information collected during inspections.

15. REVIEW OF THE INSPECTION POLICY

The implementation of the Inspection Policy will be monitored and

reviewed by the Monitoring Committee at half-yearly interval and annually

by the Governing Board of RVO ESMA.

The Inspection Policy may be amended, if so occasion so arises, from time to time by the Governing Board and will remain in force till further instructions of the Governing Board or by the IBBI.