CEV INTEGRAL APPRAISERS FOUNDATION
Monitoring Policy
Contents
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Preamble
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Objective
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Framework
3.1 Information to be submitted
3.2 Manner / Format of Submission of Information
3.3 Obligations to comply with the Monitoring Policy
3.4 Inspection
3.5 Use, Analysis and Storage of information and records
3.6 Evaluation of Members
3.7 Review of the Monitoring Policy.
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Preamble: – As per sub-rule (3) of rule 12 and clauses (f) and (g) of rule 14 of Companies (Registered Valuers and Valuation) Rules, 2017, the Registered Valuers Organisation shall have a Monitoring Policy to monitor the professional activities and conduct of professional members for their adherence to the provisions of the Code, rules, regulations and guidelines issued there-under, the bye-laws, the Code of Conduct and directions given by the Governing Board.
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Objective: – The Registered Valuers Organisation are required to monitor the members as prescribed in rules. As per rules, the model bye laws of Registered Valuers Organisation to provide for the manner of monitoring and reviewing the working of members. Para 8(1) (b) of Model Bye-Laws of a Registered Valuers Organisation mandates constitution of Monitoring Committee. It requires a Registered Valuers Organisation to have a Monitoring Policy which would include frequency of monitoring, performance evaluation of members, etc. The Policy also requires members of RVO to submit certain information to RVO relating to the conduct of the Valuation process.
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Framework
3.1 Information to be Submitted: – The members/registered valuers undertakes any engagement/assignment (ongoing and concluded) have to be reported under the Companies (Registered Valuers and Valuation) Rules, 2017 and to submit a copy of their records before M/s CEV Integral Appraisers Foundation in the manner and format specified by the RVO, at least twice a year stating inter-alia, the date of assignment, date of completion, and reference number of valuation assignment and valuation report.
3.1.1 Classification of data required for Monitoring
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Static Data
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Dynamic Data
iii. Other qualitative information
(i) Static Data: – This consists of information furnished at the time of enrolment, which is less likely to change but is material in terms of the eligibility of the Member to continue as a Registered Valuer/ Member. Example- Employment Status, Conviction, Change of Nationality, Suspension or Restoration of registration by IBBI, etc.
Periodicity of submission: –
Static data shall be provided by the members in the following events: –
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a) At the time of enrolment
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b) Updation of static data annually
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c) Updation of static data if there is a change
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d) At the time of renewal of membership
Any change in the Static Data will need to be advised immediately to the RVO, but not later than 15 days of the above change having occurred or its having come to the knowledge of the Member.
In all cases, the Member will be required to submit a fresh Status report to the RVO at the time of his annual renewal of Membership.
(ii) Dynamic Data: – Every Registered Valuer/Member is required to submit information of each engagement/assignment under the Companies (Registered Valuers and Valuation) Rules, 2017 twice a year i.e. as on 30th September and 31st March to M/s CEV Integral Appraisers Foundation.
The report should inter-alia, include comments on all the cases being handled, on the following: –
– Non-adherence to directions/regulations/law, if any, with reasons
– Reasons for slippages in time lines, if any, separately for all cases
– Nature of condonation sought, if applicable, and adjudicating authority’s response thereto
In case of Concluded Engagements/Assignments, a Member is required to submit a brief Status Report till the case is finally closed.
– Nature and purpose of Transactions conducted with stakeholders during and up to the period of the report
– Nature and purpose of Transactions conducted with third parties during and up to the period of the report.
Apart from the above half yearly report, the Members shall immediately, and in no case later than 15 days of the appointment, inform RVO of the following: –
– Number and status of existing Valuation process being handled by the Members
– Date of fresh appointment as Registered Valuer
– Brief information about the new case awarded
– Proposed timelines for compliance with stipulations under the provisions of the Act, rules, regulations and guidelines issued thereunder.
– Steps proposed to be taken for discharge of responsibilities as Registered Valuer for the new and existing cases.
– Any conflict of interest likely to arise.
Periodicity of submission
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a) Half Yearly Report as on 30th September and 31st March.
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b) Report on Appointment as Registered valuer shall immediately, and in no case later than 15 days of such appointment
Apart from the above, the member will be required to report within 24 hours: – Any warnings or penalties or strictures imposed by the competent authority – Initiation of legal action against the member.
The Member will also submit a summary of the outcome of each Valuation within 21 days of its conclusion.
(iii) Other qualitative information
The following supplementary information also needs to be submitted by the Members: –
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the details of the appointments made under Companies (Registered Valuers and Valuation) Rules, 2017 and other applicable law;
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summary of transactions conducted with stakeholders during the period of his appointment;
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summary of transactions conducted with third parties during the period of his appointment; and
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the outcome of each appointment.
Periodicity of submission
– Details of the outcome of each appointment within 21 days of its conclusion.
3.2 Manner / Format of Submission of Information
Information will be submitted by members on the formats placed at Annexure-I for Static Data and Annexure-II for Dynamic Data.
The format in which the Other Qualitative Information is to be submitted is given as Annexure-III.
3.3 Obligations to comply with the Monitoring Policy
(i) Every Registered Valuer registered with our RVO named M/s CEV Integral Appraisers Foundation is obliged to comply with the requirements of the Monitoring Policy.
(ii) The Monitoring Committee shall review the information and records submitted by the members with the objective of monitoring the professional activities and conduct of each member.
(iii) Falsification, misreporting or non-reporting of information required under the Monitoring Policy or sought separately by the Monitoring Committee or any other competent authority may lead to initiation of Disciplinary Proceedings against the member.
(iv) The guidelines set here should be strictly adhered to, failing which action against the Professional may be recommended by the Monitoring Committee to the Disciplinary Committee of M/s CEV Integral Appraisers Foundation.
3.4 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), wherever required. The report of the inspection will be put up by the inspecting member(s) to the Monitoring Committee, which would take appropriate steps/actions, as warranted.
3.5 Use, Analysis and Storage of Information and Records: –
3.5.1 Use/ Analysis of information and records
M/s CEV Integral Appraisers Foundation shall submit a report to IBBI in the prescribed annexures/formats annexed herewith, containing information collected from members, pertaining to: –
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the details of the appointments made under Companies (Registered Valuers and Valuation) Rules, 2017 and other applicable law;
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the transactions conducted with stakeholders during the period of his appointment;
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the transactions conducted with third parties during the period of his appointment; and d. the outcome of each appointment.
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Any other related information.
3.5.2 Storage of information and records
The data so collected shall be stored and recorded in a physical and/or digital manner for a period of 8 years, having due regard for:
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ensuring the privacy of members
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confidentiality of information received, except when disclosure of information is required by the Board or by law;
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in a non-discriminatory; and
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with proper safeguards, including Disaster Recovery Mechanism procedures.
3.6 Evaluation of Members
The information obtained from members shall be analyzed to verify whether the transactions conducted were in compliance with the Companies (Registered Valuers and Valuation) Rules, 2017 and other applicable laws.
The information collected from the members will be evaluated on Quantitative and Qualitative Parameters, with a weightage of 30:70 being assigned to the two respectively for facilitating the assessment.
3.6.1 Quantitative
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Frequency of submission of reports
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Delay in submission of information exceeding 15 days from stipulated timeline
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Deviation from timelines prescribed under law/regulations
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Transactions conducted with stakeholders/third parties
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Number of warnings/strictures/penalties imposed till date of report
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Number of incorrect submissions/ data falsifications, etc.
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Number of disciplinary cases initiated, if any, with outcomes
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Number of grievances raised, if any, with outcomes
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Outcome of Inspection, if any.
3.6.2 Qualitative
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Review of steps taken by the Member
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Violations, if any, of the Companies (Registered Valuers and Valuation) Rules, 2017 and other applicable law.
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Effectiveness and timeliness of follow-up measures
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Quality of reporting to Organization
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Quality of citings/references
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Quality of Interaction with Stakeholders
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Valuation methodology/approach
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Implication and impact of grievances received, if any
10.Outcome of steps taken for Valuation process
11.Result of Disciplinary Action, if any
12.Details of Imprisonment, Debarments, Suit(s) filed against Registered Valuer/Member, Strictures by the competent authority, if any, with the reasons thereof and status.
13. Apart from the above, features adversely impinging on ethics and integrity, if prima facie tenable, would be referred to the Disciplinary Committee and their decision taken into consideration. Evaluation criteria for Members who have undertaken assignments would cover the above factors.
3.7 Review of the Monitoring Policy
The implementation of the Policy will be monitored and reviewed by the Monitoring Committee at quarterly intervals by the Governing Board of M/s CEV Integral Appraisers Foundation. The Monitoring Policy may be amended from time to time by the Governing Board and will be remain in force till further instructions of the Governing Board or IBBI.
Annexure-I
Reporting Format
Static Data
Name:
Enrolment Number:
Address of Correspondence:
Tel./Mobile:
Email:
Reporting Format of Static Data:
S. No. |
Static Data Change Particulars |
Date of Change |
Reason for Change |
Implications for Current/ ConcludedEngagement/Assignment |
Remarks:
Signature
Date:
Place:
Annexure-II
Reporting Format
Dynamic Data
Half Yearly Report
as on 30th September, _______/ 31st March, _________
(To be provided separately for each Engagement/Assignment-ONGOING/CONCLUDED)
Name:
Enrolment Number:
Address of Correspondence:
Tel./Mobile:
Email:
Reporting Parameter |
Comments |
a) Name of Engagement/Assignment |
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b) Non adherence to directions/regulations/laws, if any, with reasons; |
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c) Reasons for not maintaining timelines, if any, separately; |
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d) Nature of condonation sought, if applicable, and adjudicating authority’s response thereto; |
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e) Any warnings or penalties or stricturesimposed by the competent authority |
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f) Initiation of legal action against themember Processes being handled by the member; |
Remarks:
Signature
Date:
Place:
Annexure-III
Reporting Format
Other Qualitative Information
Name:
Enrolment Number:
Address of Correspondence:
Tel./Mobile:
Email:
1.(a) Appointment Status
S. No. |
Key Items |
Comments |
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2.(b) Summary Report of Transactions with Stakeholders
S. No. |
Date ofTransaction |
Amount (Rs.) |
Comments |
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Total |
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2.(c) Summary Report of Transactions with Third Parties
S. No. |
Date ofTransaction |
Amount (Rs.) |
Comments |
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Total |
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2.(d) Outcome Report of Each Appointment
S. No. |
Key Items |
Comments |
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Remarks:
Signature
Date:
Place: