Dissemination of Information to the Members

RVO Estate Managers & Appraisers Foundation | IBBI RECOGNISED RVO

10-Apr-2021


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.
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Excerpts of the 41st meeting of IBBI held on 09.08.21
 
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. 
 
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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

NOTICE

·       Due to maintenance of website some pages may not be displayed properly, this is temporary.

·        Cross check our member section for validation of Certificate of Practice and Membership.

·        As per IBBI guideline dated 03.09.21 : 50Hrs. Online Class/CEP is available up to 31-12-2021