LOGO

Registered Valuer under IBC: History, Qualification & Procedure

In this article, we shall understand the concept of Registered valuer under IBC. The valuation of assets and obligations is regulated by the registered valuer. A controlled valuation not only resolves the aforementioned problems but also ensures the validity of the appraisal.

GET EXPERT
ASSISTANCE

Table of Contents

registered valuer under ibc

Registered Valuer under IBC in India

For a long time, India required a suitable law to address the growing issue of non-performing Assents and strategic restructuring of dept. In 2016 India’s government India came up with an Insolvency and Bankruptcy Code, that guarantees a deadline-bound resolution procedure to resolve Insolvency or Bankruptcy procedures of the business of Registered valuer under IBC. 

The powers of the Central Government, as defined in Section 247 of the Companies Act, 2013, have been commissioned to IBBI by the Insolvency and Bankruptcy Board of India (IBBI) as the council to enroll values by firms rules, 2017 will complete into force from 18th October 2017.

In this article, we shall understand the concept of Registered valuer under IBC. Before the idea of a Registered Valuer was introduced, the valuation of assets and obligations was random and not subject to any regulations. A controlled valuation not only resolves the aforementioned problems but also ensures the validity of the appraisal. There were many uncertainties and window dressing in the arbitrary valuation.

History: Registered Valuer under IBC

Section 247 of the Companies Act, 2013 stipulates the person or entity that is permitted to carry out the process of valuing any property, machinery, or equipment, debentures goodwill, securities, stocks, and all other liabilities or assets of the registered company under the said legislation. 

The valuation of backing was conducted arbitrarily by the valuer under the Companies Act, who wanted realism and consistency. The concept of a registered valuer is introduced under IBC to regulate the valuation of the business’s assets and liabilities and to improve this valuation process to be in line with international valuation standards.

Read More: Indian Company Registration

Qualifications For Registration of Registered Valuer

Rule 4 of the Companies (Registered Appraisers and Valuer) Rules 2017 sets out the qualifications and experience needed to register as a Registrar of Appraisals under the IBC.

  • You must be registered as an appraisal member with a registered appraisal organization.
  • The individual must be able to pass the Valuation Examination that is conducted through IBBI. The Companies Rules, 2017 prescribes a requirement that the person need not have passed the examination test.
  • If they have reached the age of 50 or more and have had a hand in the appraisal of assets that amount to 5 crores or more.  Interpreting the date of the outset of the registered valuer under IBC  and valuation rules.
  • The postgraduate or the equivalent 3 years of post-qualification experience or
  • Professional institute member with 3 years of post-qualification experience following the obtaining of that membership.
  • Any registered company or partnership is a registered valuer in the Insolvency and Bankruptcy Code, in 2016.

Procedure for Registration as Registered Valuer under IBC

The number of stages is necessary for registration as a registered valuer under IBC and is discussed in the following sections:

Step 1- A candidate must seek membership as a primary member of the Registered Valuer under IBC Organization (RVO) as a valued member. Subsequently collecting the application, the RVO will examine it to ensure that it meets the requirements for registration, including the provisions of rules 3, 4, and 5 of the Companies Rules, 2017. Formerly, the RVO has finalized that the rules are being pursued, and an applicant will be registered as a Value Added Member by the RVO.

STEP 2- A obligatory 50 hours of training course including RVO must be completed in the specific Asset Class that requires registration as a Registered Valuer under IBC in the context of IBC.

Step 3- Clear the asset class’s valuation test carried out by IBBI.

A registered Valuer under IBC can be certified for all three assets to be used for valuation. 

They are:

  1. Constructions, Land, and Building;
  2. Factory and Machines
  3. Safety and Financial Assets.

Step 4- Form A and submission of required papers. After submitting Form-A, an applicant should send the same to the RVO to seek approval. Upon review of Form-A RVO will then approve the application.

Step 5 Online fee of Application taxes.

The applicant must pay for fees online with the payment link that was provided to them. After making a payment online it is printed out, and the confirmation of payment page must be kept to be used for future use.

Step 6- The documents submitted must be accompanied by a Form-A and an addendum to Form A along with copies of any documents that you have uploaded previously as well as evidence of payment.

Step 7- 

On token of Form A from the applicant:

  • Study and validate the application with the mandatory documentation in the application form;
  • Reviews to assure that all documents are uploaded to the entrance.

RVO will send the applicant scans of the completed request (duly completed by RVO and the applicant) to upload through the portal, after verifying the information provided in the application along with the documentary evidence received. 

The following information must be scanned:

  • Formula A with seal and signature is required to be attached to the RVO by a signature;
  • Addendum to Form A (Physical duplicate);
  • The proof of payment for the fee.

Step 8-  The applicant has to upload the scan copy of their receipt on the portal and then submit it.

Step 9-  Later online authorization of the application by the RVO.

Additional data :

  • Formula A with seal and sign have to be joined by RVO.
  • Addendum to Form A (Physical duplicate);
  • The proof of payment for the fee.

STEP- 10 Before starting to practice as a Registered Valuer under the IBC the candidate must be issued the Certificate of Practice issued by the Registered Valuer under IBC Organization(RVO) following the time that the authority has approved registration.

The registered valuer under IBC is required to be able to specify the reason for the value of an asset, the procedures implemented, the valuation methodology, and the source of information.

Read More: Privatization Of Banks In India  

Business Expert

Book free end-to-end experts consultation with Odint finance and legal experts

GET EXPERT
ASSISTANCE

Conclusion

As you can see, it is evident that a registered valuer under IBC must be appointed to assess the fair value and liquidation value of Insolvency and bankruptcy. Registration of Valuers is designed to enhance the accuracy and reliability of valuations of assets and helps individuals make an informed choice by relying on valuation reports.

If you’re still having questions regarding registered valuer under IBC, or any other questions, we are ODINT Consultancy. We are available here to help you every step of the way.

FAQ’s

Subject to fulfillment of other conditions. A person may become a registered valuer under IBC  provided that he,

 (i) Is a sincere and capable person,

(ii)  Has the necessary capabilities and creativity,

(iii)  Important member of the Registered Value Offering Organization (RVO).

 (iv) has completed an accredited educational course to become a part of the RVO as well

(v) has completed the valuation exam which is conducted by the IBBI in addition,

(vi) is approved by the RVO to be registered as an appraiser.

A registered valuer under IBC is a person who has been registered with the Authority under the Companies  Regulations 2017.

Registered valuers under IBC shall perform valuations according to the Central Government Valuation Standards.

Follow us

Privacy Policy Terms and Conditions

©2021 ODINT Consulting LLP

Looking for an Expert Guidance?

Get 30 minutes of free consultation with our company formation experts!

Will help you to setup your company anywhere in the world

Get Dedicated company formation consultant

End-to-end management and consulting

GET EXPERT
ASSISTANCE

Share to...