Dissemination of Information to the Members

RVO Estate Managers & Appraisers Foundation | IBBI RECOGNISED RVO

22-Apr-2022


Excerpts of relevant potion of the MINUTES OF THE IBBI AND ALL RVOS, 49th  MEETING HELD ON APRIL 11, 2022 AT 03:00 PM

Status and details of Registered Valuers to be displayed on the website of RVOs.

 

Submission of Half Yearly Reports for the period October, 2021 to March, 2022

The RVOs are required to submit half yearly reports to the Board in a specified format. The RVOs are also required to conduct an analysis of the information received from the RVs and provide a summarised version to the Board by April 30, 2022. So, all the RVMs are requested to submit their corresponding HYR by 25th of April.

Peer Review of Registered Valuers by RVOs for FY 21-22. It was decided that the Workshop on peer review of Valuation Reports will be held on 21st April, 2022.

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MINUTES OF THE 48th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATION HELD ON MARCH 11, 2022 AT 11:30 AM

 

The relevant excerpts from the minutes given here

 

It was decided that online delivery of CPE programmes to continue for another 6 months. 

 

"Display of status and details of Registered Valuers on the website of RVOs- The RVOs are required to display the status and specified details of every registered valuer being its valuer member including any action being taken against them on their website as per Rule14(h) of The Companies (Registered Valuers and Valuation) Rules, 2017." RVO ESMA had already put the order copy on the above in their website, however if is is utmost necessary to put the status in the members' list, which may enable a client to see the status of all members at a glance, RVO ESMA will do so soon.

 

 

Peer Review of Registered Valuers by RVOs for FY 21-22 – There will be workshop on Peer Review by all the RVOs. The date and time of the workshop on peer review by RVOs will be decided by the Board separately and shared with all the RVOs.

 

Other points discussed, were already given below under the excerpts of the minutes of 47th meeting

 

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47th Action Taken Report of IBBI says

"Display of status and details of Registered Valuers on the website of RVOs- The RVOs are required to display the status and specified details of every registered valuer being its valuer member including any action being taken against them on their website as per Rule14(h) of The Companies (Registered Valuers and Valuation) Rules, 2017."

MINUTES OF THE 47th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATION HELD ON FEBRUARY 07, 2022 

 

Unique Valuation Report Identification Number (UVRIN) for valuation reports by Registered Valuers is proposed by IBBI- details on which will come soon.

Peer Review of Registered Valuers by RVOs for FY 21-22 – There will be workshop on Peer Review by all the RVOs by the end of February 2022.

Development of best practices in the interest of the valuation profession: It was noted that a joint meeting was organized for all the RVOs on 3rd February 2022 to discuss on developing best practices for RVs wherein they identified the key grey areas.- The PPT presentations for Best Practice and Identifying Grey areas have been and submitted by RVO ESMA Foundation.

IBBI requested all the RVOs to contribution of case studies and questions by RVOs – number of questions were submitted by  RVO ESMA Foundation much before.

 

 

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MINUTES OF THE 46th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATION HELD ON JANUARY 07, 2022 

 

Unique Valuation Report Identification Number (UVRIN) for valuation reports by Registered Valuers: The discussion took place on creating a centralized digital mechanism whereby Unique Valuation Report Identification Number shall be generated for each valuation report prepared by the Registered Valuers.

RVOESMA Comments It will be like UDIN, "To curb the menace and malpractices, this has been conceptualised and implemented an innovative concept called Unique Document Identification Number (UDIN)"... internet

 

Inspections undertaken by RVOs of their Registered Valuer members in F.Y. 21-22: The RVOs were requested to give an update and expedite to undertake the inspections for F.Y. 21-22 based on the number of the Registered Valuers enrolled with them.

 

The RVOs were requested to collate and have a depository of methodology of valuation and assumptions utilised in the valuation reports which are being peer reviewed. It was also requested to complete their peer review process by 31st January 2022.

 

It was decided that the RVOs will expedite the publication of preliminary report prepared by the committee of experts on valuation on their respective websites.

 

IBBI is also emphasising on Best Practice done by the RVMs.

 

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Important points discussed on December 07, 2021

 

CPE Credit hours for a member who joins the RVO for part of the year – It wa apprised that an RV shall undertake a minimum of 10 credit hours of CPE in each financial year and a minimum of 48 credit hours of CPE in each rolling block of 3 years. With consensus of all RVOs it was decided that in case a member joins the RVO for part of the year, the respective RVO will credit CPE hours to such RV on a pro rata basis, based on the date of registration.

(Action: RVOs)

 

Review of Insolvency and Bankruptcy Board of India (Online Delivery of Educational Course and Continuing Professional Education by Insolvency Professional Agencies and Registered Valuers Organisations) Guidelines, 2020: It was apprised that the validity of these guidelines for online delivery of education course is due to expire on 31st December 2021. Considering the rising concerns about new variant of Coronavirus, it was decided with consensus of all RVOs to extend it till 31st March, 2022.

 

 

IBBI has emphasized on regular submission on Half Yearly Report to the IBBI through RVOs (Action: RVOs)

 

IBBI also insisting on peer review process regularly conducted by RVMs (Action: RVOs)

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Excerpts on important points discussed on 43rd IBBI meeting with CEOs held on 07-10-2021

 

A) IBBI insists on strict monitoring and streamlined discplenary procedures of Registered Valuers. Risk based monitoring is in the pipeline. 

B) Suggestions on syllabus from RVOs were requested. Which RVOESMA FOUNDATION has already submitted. 

C) IBBI is encouraging research work in valuation.

D) Development of best practices by RVMs. RVOESMA has already identified some grey areas and suggestions on this was sent to IBBI.

E) Joint  50hrs class by 2 or more RVOs may be allowed for financial feasibility, if the number of students, joining educational programs are less.

.............................................................................................................................................................................................................................................................................................................................................................. Important points discussed on 42nd IBBI meeting with CEOs held on 07-09-2021

 

CPE requirements: As discussed in the 40th monthly meeting, the CPE requirements by RVs were examined by the IBBI and it was decided that an RV shall undertake a minimum of 10 credit hours of CPE in each financial year and a minimum of 48 credit hours of CPE in each rolling block of 3 years. This would be reviewed after the close of the current rolling block of CPE, that is, 2020-2023.

Excerpts of the 41st meeting of IBBI held on 09.08.21

 

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Fees levied by RVOs for various services- It was noted that Clause 11 of Model byelaws of Registered Valuer Organisation forming part of the Annexure III to the Companies (Registered Valuers and Valuation) Rules, 2017 (Rules) provides that “The Registered Valuer Organisation may require the members to pay a fixed sum of money as its annual membership fees”. Therefore, RVOs were requested to comply with the Rule.

 

 

IBBI shows strictness and RVOs were requested to have appropriate monitoring arrangements to ensure that a RV takes up a valuation assignment only after obtention of certificate of practice from the RVOs where they were enrolled as a member. In this connection RVO ESMA FOUNDATION is informing  that a valid Certificate of Practice is available only to the RVMs who have renewed their Annual Membership. Please cross check our website for validity of COP of each RVM.

 

It was decided that the peer review shall be done for the valuation done during the period between October 2020- September 2021 and shall be completed by 15th January 2022

 

Risk based monitoring of the members : The inspection through Desktop Monitoring mode for the RVMs is already started. 

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The Guidance Note on Impact of COVID 19 on Valuation prepared jointly by the team of 7 RVOs as decided in the 39th meeting with the MDs/CEOs of Registered Valuers Organisation held on 07th June 2021. It has been uploaded in our website under E-Notes section. 

 

Click on this link to see https://iesmarvo.net/asst/enotes/6324d-guidance-note-on-valuation.pdf

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Excerpts from 40th Meeting of IBBI with CEOs/Chairperson of RVOs

 

1. Registered Valuers who are not in compliance with any requirements under the Rules be subject to a more focussed monitoring through the desk top mode and if required, through inspection. - IBBI instructed the RVOs to be more strict on this.

 

2. The RVOs to scrutinise the HYRs to ensure that they are complete in all respect before they submit the same to the Authority - So, members have to be very particular on submitting the Half Yearly Report to RVO, the essence is promptly, accurate data to be submitted by all RVs. 

 

3. The RVOs suggested that the CPE requirements for the two financial years may be clubbed so that a RV may do CPE of 32 hours by 31st March 2022 - it is not yet finalised, the proposal to be examined by IBBI.

 

 

 

In the 39th Meeting with the MDs/CEOs of Registered Valuers Organization (RVO) took place on June 07, 2021 through online mode.

The followings are important for Registered Valuers -

Inspections of Registered Valuers conducted by RVOs. This is an urgent requirement 

Clarification on credit and Annual Compliance of CPE hours - further via subsequent letter- all RVOs are instructed to submit the compliance report for CPE to the Authority immideatly. 

Review of status submission of HYR (Half yearly Report) from Oct 2020- Mar 202.

RVOs should take an independent view on disciplinary matters concerning their members.

The order of the DC must be published on the website of the concerned RVO within 7 days of the issuance of the order as per bye- laws.

Some RVOs expressed concerns that some of the questions in the examination were irrelevant and some questions also have more than one correct answer. It was clarified that the questions of the Valuation Examination have been prepared by a pool of experts and if there are any specific areas which requires attention, it can be brought to the notice of the Authority.

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1.        The Primary Membership certificate along with 50 Hrs. Educational Course completion certificate can be used by a member to appear in the valuation examination conducted by the IBBI to be a Registered Valuer of  IBBI. 

 

A separate Certificate of Practice will be issued to the member after being  a Registered Valuer with the IBBI.

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Page for disseminating information about the important decisions taken in the monthly meeting of the RVOs with IBBI.

1.     A valuer, empanelled with IBBI in particular asset class, must  conduct the valuations only in respect of those assets or asset class(es) for which she/he is registered with the IBBI.

2.     “Physical verification of tangible assets be made mandatory for all valuation under the Rules.                                                                                                                    in point number 3.6(ii) of Caveats, Limitations, and Disclaimers in a Valuation “Report not to be used ...... Physical Verification: RV giving a disclaimer that he has not physically verified the tangible assets in case where engagement is for providing liquidation value”  This provision seems to imply that physical verification of tangible assets is mandatory only for providing liquidation value. RVO ESMA has made it clear that Physical verification of tangible assets is mandatory for all valuation under the Rules/Code.

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11.02.2021

Page for disseminating information about the important decisions taken in the monthly meeting of the RVOs with IBBI

 

Status of compliance of CEP by RVs: It was decided that the compliance report of RVs for CEP will be submitted to the Authority within one month after the close of the Financial Year. Accordingly, for FY 2020-21 the RVO will submit the compliance report for CEP to the Authority by 30th April 2021. CEP to be conducted by RVOs under Rule 12(2)(e): In the 35th meeting with MDs/CEOs of RVOs held on 07th January 2021, it was decided that, in compliance with the provisions of Rule 12(2)(e), only the RVOs which have registered valuers as members, shall organise CPE. To avoid any inconvenience to the RVs who have undertaken CPE before this date, it was decided that the RVs that have taken part in CEP before 07th January 2021 will be given CEP credit by the RVOs.

 

Inspections of Registered Valuers conducted by RVOs: The RVOs were required to provide data pertaining to the inspections conducted of their members for the financial year 2020-21.

 

RVs conducting valuation not registered with the specified asset class: The RVOs were requested to be vigilant and take appropriate action against their members who had conducted valuation for the asset class in which they were not registered with the Authority

 

Fees for file a complaint in the Grievance Redressal cell is Rs. 1000/- + GST

 

Registered Valuer Members to submit Half yearly report for the period of April 2020-September 2020 immediately.

 

In the Valuation Report, the RVs and RVEs must clearly indicate the Valuation Standards followed by them.

 

RVOs are required to conduct peer review of valuation reports for this financial year which would be followed by a workshop to discuss the findings.

 

RVOs shall analyze the judgments of adjudicating authority, or any other judicial forum wherein adverse remarks have been made against the valuation report or valuer members. Similarly, they were also encouraged to examine if any appreciation was conveyed by any authority.

 

Registered  Valuers are requested not to undertake any Valuation Job under Companies Act, 2013/ Insolvency Bankruptcy Code from any person who is not IP/RVE( Vide Circular no. IBBI / RV/019/2018 dated 17.10.18 that provides IPs and RVE can only appoint Registered Valuers after 31.01.19 to conduct the Valuation job under the IBBI Code).
However,  being a Registered Valuer, one can undertake the Valuation job relating to Assets or Liabilities of a Company directly from the Company itself.

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For Seminar / Conference / Teaching our own software ‘Esmameet’ / licensed version of ‘ZOOM’ will be used.

All Registered Valuer Members and Registered Valuer Entity Members are required to follow International Valuation Standard. Permission is required for any departure.

For any complaint in the Grivance Redressal Cell the Complainee should disclose his / her intetest and reason on the subject of complaint.

 

RVO ESMA FOUNDATION

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NOTICE

3RD NATIONAL ONLINE QUIZ ON INSOLVENCY AND BANKRUPTCY CODE, 2016 : https://ibbi.gov.in/uploads/quiz/brochure.pdf (copy the link)

16th Apr 2022 - 15th May 2022