IMPORTANT DECISIONS TAKEN IN MONTHLY MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS

IMPORTANT DECISIONS TAKEN IN MONTHLY MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS

IMPORTANT DECISIONS TAKEN IN MONTHLY MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS

(REF:-  34th MEETING Point No-7. Mechanism for disseminating important decisions taken in the monthly meetings: The RVOs were requested to have a section of their website for communicating the important decisions taken in the monthly meeting of the CEOs/MDs of RVOs to their members. A status was prepared and displayed in the meeting. It was noted that only six RVOs have provided this facility on their websites. Other RVOs were requested to have this facility at the earliest.)

31st MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON 07th SEPTEMBER 2020 AT 02.30 PM

11. Determine quality of Valuation Reports: The issue was discussed in the previous meeting and it was clarified that RVOs being front line regulators have to act proactively. The judgments of the NCLT, or any other judicial forum are available on their respective websites. The RVOs may access the judgments through the official websites and analyze the judgments wherein adverse remarks have been made against a valuation report or their valuer members and examine if any necessary action was required in each case. (Action: RVOs/RVO division)

13. Compliance of Circular no. IBBI/RVO/029/2020 issued by the Board on 28thJanuary 2020: The Board has been receiving many complaints regarding transfer of membership from one RVO to another. It was clarified that for the purposes of the Circular, disciplinary action would be considered as pending against a member only if a SCN has been issued to the member. After receipt of application for transfer of membership from a member, the RVO shall not raise a fresh query from a member for initiating the proceedings.

17. Employment Certificate of an applicant for registration as a valuer: A concern was raised that the RVOs forward applications of members for registration as a valuer, wherein, the member was found working with several organisations but the supporting employment certificate for all the organisations was not provided. It was clarified that the work experience provided by the member applicant shall be supported by employment certificates.

18. Valuation Examination: The Valuation Examination data for the month ending August 2020 was placed for information of the RVOs. One of the RVOs suggested that the RVOs should receive an intimation regarding passing of their member after issue of the examination certificate electronically. Valuation Examination division was requested to examine the issue.

32nd MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON 07th OCTOBER 2020 AT 01.00 PM

10. Valuation Examination: The Valuation Examination data for the month ending September 2020 was displayed. In the previous meeting, one of the RVOs suggested that the RVOs be provided an intimation as soon as their member passes the valuation examination and examination certificate is generated. DGM (KJ) from Valuation Examination Division conveyed to the RVOs that the suggestion was examined and stated that this will not be possible considering the privacy issues of the candidates and the lack of consent thereof. It was suggested that the RVOs may consider providing for this in their enrollment form and ensure that this was disclosed directly by the member to the concerned RVO.

11. Distinction in type of membership created by RVOs i.e. Primary members and Permanent members: It was noted that some RVOs have created a classification of members such as primary members and permanent members. The RVOs were requested to comply with the provisions of the Rules.

12. Examination of eligibility, including scrutiny of necessary documents, before enrollment of members by RVOs: The RVOs were requested to comply with Clause 9 of the Rules which provide that no individual shall be enrolled as a member if he is not eligible to be a registered valuer with the authority. It was noted that there were some exceptions in this regard for which, the RVOs may be guided by the clarification by the Board. In all other cases, if a member who is not eligible to be an RV and still wants to undertake the 50 hours educational course for knowledge accretion, then the RVO shall communicate this to the member in writing through an e-mail, before he is permitted to do the educational course. 

14. Publishing of information of RVs on website of the RVO: The RVOs were requested to publish information of their registered valuers on their website. The information may include, name, registration number, number of ongoing assignments, number of concluded assignments, disciplinary orders issued by RVO or IBBI, adverse objections of AA or any other judicial authority etc. The information may be published in the format annexed as Annexure-B.

15. Eligible educational qualifications for the purpose of registration as a valuer: It was clarified by CGM (RKG) that while considering the eligible educational qualifications for the purpose of registration as valuer, the mapping of specified disciplines as provided under Annexure IV of the Companies (Registered Valuers and Valuation) Rules, 2017 may be made with the relevant/appropriate nomenclatures provided under AICTE notification dated April 28, 2017. Vide said notification, the AICTE has notified major/core branches of Engineering and Technology with relevant/appropriate nomenclatures of undergraduate (UG) and post-graduate (PG) degrees relevant for recruitment in teaching positions in the technical institutions.

33rd MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON 09th NOVEMBER 2020 AT 02.30 PM

12. Publishing of information of RVs on website of the RVO: The RVOs were requested to publish the profile of their members including information such as name, registration number, details of ongoing and concluded assignments, disciplinary action by RVO or IBBI, adverse observation of AA or any other judicial authority etc. on their website.The Board had circulated a format (Annexure-B) annexed with the minutes of 32nd monthly meeting held on 07th October 2020 for this purpose. Mr. Vinay Goel, MD, IOV RVF raised concerns regarding publication of such information as some RVs have not received any assignments and publication of such information could demotivate them. Mrs. Sarika Singhal, CEO, ICAI RVO requested for postponement of this initiative by another six months as some of the RVs were considering surrendering their membership due to thesetback caused by pandemic COVID-19. It was decided to revisit this in the next monthly meeting to be held on 07th December 2020.

16. Discussion on insertion of unique identifier in the certificate of registration issued to RVs: CGM RKG apprised that the certificate of registration of an RV does not contain any unique identifier of the concerned individual / entity. There is a possibility that this might lead to misuse of the certificate by another individual / entity with identical or similar name. This could, therefore, affect the credibility of the valuation report. The RVOs were in favour of having PAN/CIN/LLP number on the registration certificate for identification purposes. It was decided after discussions that the feasibility of all the options would be considered including that of having a water mark, and then a final decision shall be taken by the authority.

34th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON 07th DECEMBER 2020 AT 02.30 PM

15. Fees structure of the RVOs for educational course, CEP, training through online mode: A summary of the fees structure of the RVOs for the educational course and CEP, as compiled from the website of the RVOs, was presented in the meeting. It was noted that some of the RVOs have specified fee structure for the course conducted through online mode, whereas some had a uniform fee structure for both online and classroom courses. The Board had received feedback that the RVOs had not rationalized their fee structure even after introduction of online delivery of the educational course, further some RVOs had not disclosed the fee structure for online delivery of the course on their website. All RVOs were requested to consider rationalization of the fee structure in accordance with the reduced cost of conducting course through online mode and disclose the same on their website. Further, the entire fee structure for all services including that for CEP and training conducted by the RVOs may also be provided on the website of the RVOs.

17. Similar names of RVOs: It was observed that the Board has been receiving applications for recognition as an RVO from companies which are having similar names to that of the existing RVOs. For framing a policy on the issue, the Board sought suggestions from the RVOs before the next monthly meeting to be held on 07th January 2021.

35th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON JANUARY 07, 2021 AT 01.00 PM

10. Half yearly report of RVOs: The RVOs were required to submit their half yearly reports (HYR) as on 31st March 2020 before 30th September 2020. It was noted that only seven RVOs have submitted their HYR for the period of October 2019 – March 2020 and seven RVOs have submitted their HYR for the period of April 2020 – September 2020. The RVOs were again advised to submit the HYRs and comply with the provisions of the Rules regarding submission of the HYR at the earliest.

13. Fees structure of the RVOs for educational course, CEP, training through online mode: The RVOs were required to provide the fee structure for all services including that for CEP and training conducted by the RVOs through online mode. It was noted that only 8 of the RVOs have complied with this requirement. Other RVOs were again requested to upload the fee structure for all services including that for CEP and training conducted through online/offline mode on their websites.

16. Fees charged by RVOs for registering complaints/grievances: It was observed that the Grievance Redressal Policies of some of the RVOs provide for fees of Rupees ten thousand for a stakeholder to file a complaint. It was noted that Rule 16 provides that a complaint may be filed against a registered valuer or registered valuers organisation along with a non-refundable fee of rupees one thousand in favour of the authority.

In view of the above, the RVOs were advised to amend their policies suitably, if at all the policy requires payment of fees for lodging a complaint, it shall not be in excess of what is provided in the Rules for the authority. Further, a complaint will still need to be examined and disposed of on merits even if the requisite fee is not paid by the complainant.

17. RVs conducting valuation not registered with the specified asset class: It has come to the notice of the Board that certain registered valuers have conducted valuation for the asset class in which they were not registered with the Board. The RVOs were requested to examine this and in case there has been such violation, appropriate action may be initiated against the RV under advice to the Board.

18. RVs: Launch of Online registration module: CGM, Rajesh Kumar Gupta apprised that the Board has launched the online module for the registration of RVs. RV division has received queries from the stakeholders regarding the process of online registration. In view of this, a familiarization session will be conducted on January 11, 2021. Further details will be shared by the RV division through email.

36th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATIONS HELD ON FEBRUARY 08, 2021 AT 12.15 PM

8. Fees charged by RVOs for registering complaints/grievances: The RVOs were requested to charge fee in accordance with the Rules. The RVOs were requested to amend their policies (monitoring/grievance redressal or disciplinary) accordingly. ICAI RVO, ICSI RVO, ICMAI RVO and CEV IAF apprised that their policies do not provide for any fees for registering complaints/grievances. This was appreciated and all RVOs were advised to comply with the provisions of the Rules.

9. 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. Two such instances had come to the notice of the Authority and this has been taken up with the RVOs for appropriate action. ICMAI RVO, ICSI RVO and CEV IAF apprised that the RVO had scrutinized their records and no such instances had been detected. Other RVOs were requested to provide similar confirmation. The RVOs were urged to have a mechanism for monitoring the activities of their members using tools like inspection, scrutiny of HYR to ensure compliance with the Rules.

12. 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. Henceforth, only the RVOs which have RVs in the specified asset class shall organise CPE for that asset class.

37th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATION HELD ON 09th March, 2021 AT 02.30 PM

6. RVs conducting valuation not registered with the specified asset class: The RVOs were requested to scrutinise their records and provide specific confirmation through an e-mail or a letter that none of their members have conducted valuation for the asset class in which they were not registered with the Board. It was reiterated that RVOs need to strengthen their monitoring and compliance activities to ensure the compliance of the provisions of the Rules by all their enrolled members.

9. Peer review of Valuation Reports of member RVs for the valuations undertaken during October 2019 – March 2020: The findings of the peer review were presented by the RVOs in a one-day workshop conducted on 17th February 2021 from 02:00 PM to 05:00 PM by ICAI RVO in association with the Board. However, it was noted that one of the RVOs did not participate in the workshop. In general, most of the participants in the workshop were of the opinion that there was substantial improvement in the quality of valuation reports, in comparison to the previous year when a similar peer review was done. While the participation of the RVOs in the workshop was appreciated, however, to make the process more effective, RVOs were requested to have a policy on peer review with the approval of their Governing Board. One of the observations during the peer review was about the lack of awareness of the Guidelines issued by IBBI on Caveats, Limitations, and Disclaimers. Accordingly, it was decided that the RVOs shall have a session on Caveats, limitations, and disclaimers in their training programme before issuing COP to the RV. They may also conduct CEP/Other programs to sensitize RVs about the Guidelines issued by IBBI on Caveats, limitations, and disclaimers.

38TH MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS’ ORGANISATION HELD ON APRIL 07, 2021 AT 11:00 AM

5. RVs conducting valuation not registered with the specified asset class: The RVOs were requested to provide specific confirmation through an e-mail or a letter that none of their members have conducted valuation for the asset class in which they were not registered with the Authority. It was noted that ICMAI RVO, PVAI VPO, CEV IAF, DJF, AIIOVF, IBVA, NVF, ACVA had confirmed compliance. CVSRTA has updated that one of their members (not an RV) has conducted such valuation and the RVO was following up with the same. The other RVOs were requested to give specific confirmation in this regard.

9. Clarifications on credit of CPE hours- It was clarified that CPE credit for a programme attended by an RV cannot be used to comply with the CPE requirements of multiple professions and can be used only once.

39th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATION HELD ON JUNE 07, 2021 AT 11:00 AM

6. Review of Insolvency and Bankruptcy Board of India (Use of Caveats, Limitations, and Disclaimers in Valuation Reports) Guidelines, 2020- IOV RVF, ICMAI RVO and CEV IAF had provided their feedback while AIIOVF, CVSRTA RVA and RVO ESMA had shared detailed suggestions. Other RVOs were requested to share their suggestions within the next fortnight so that they can be considered in the next monthly meeting.

7. Clarification on credit and Annual Compliance of CPE hours- Some additional requirements which could be counted for grant of CPE hours was discussed. At the request of some of the RVOs, it was decided that CPE hours for conferences/seminars would be given for the duration of technical sessions. The existing requirements, which could be counted for CPE along with other terms and conditions, which were decided in the previous monthly meetings were compiled at one place for ease of reference, and these, along with the new requirements as agreed during the meeting are placed at Annexure-B.

Annexure-B

Continuing Professional Education by Registered Valuers Organisations
I. Existing CPE requirements-
(As decided in consultation with RVOs in the Monthly meetings)
1. 16 hours of CPE is mandatory for RVs;
2. IBBI shall monitor compliance with the CPE requirements from 1st April, 2019
3. The CPE will be conducted through Online mode (vide circular No. IBBI/RVO/032/2020 dated 20th March, 2020)
4. To facilitate RVs complete CPE, a member of an RVO can participate in the CPE of another RVO;
5. A valuer member can participate in the CPE programme conducted by any RVO and would be provided credit for the same;
6. One or more RVOs may jointly organise programmes for CPE and the fees may be shared on a pro-rata basis;
7. The fees of the CPE organised by an RVO shall only be credited to the bank account of the RVO, who is conducting the program;
8. The manner of taking CPE by an RV shall be flexible in the initial years, it can be spread over a period of one year or maybe taken at one instance. The Board will review this after 18 or 24 months;
9. CPE credits should be accorded only for technical sessions conducted during a programme;
10. Only those RVOs which have enrolled members, in compliance with provisions of Rule 12(2)(e), shall organise CPE. To avoid any inconvenience to the RVs who have undertaken CPE before 07th January 2021 will be given CPE credit by the RVOs;
11. Only the RVOs which have RVs in the specified asset class shall organise CPE for that asset class;
12. A cap on the number of participants of the educational course and CPE has been kept to ensure the quality of education imparted by the RVOs to 100. The Board may consider a review of this provision only if adequate justification is provided for the same;
13. The RVOs can always arrange for webinars with eminent professionals with more than one hundred participants for which CPE credit shall not be available;
14. CPE credits would not be available for more than one such programme in a financial year in case of CPE programme organized by a promoter organization and RVO jointly to participating members of RVOs;
15. CPE credit for a programme attended by an RV cannot be used to comply with the CPE requirements of multiple professions and can be used only once;
16. Compliance report of RVs for CPE will be submitted to the Authority within one month after the close of the Financial Year.

Proposed Additional Requirements to be counted for credit of CPE hours:

8. Discussions on additional requirements for recognition of an RVO- The following additional requirements were considered: –
a. An applicant shall satisfy the Authority, through inspection, that it has adequate infrastructure by way of office space, furniture and fixtures, IT facilities, human resources, and training facilities to run the affairs of RVO smoothly.
b. An RVO shall have at least 100 RVs by the end of the first year from the date of recognition and at least 200 RVs at the end of the second year-
c. The existing RVOs shall comply with the requirements by 31st March 2022.
The issue was discussed and the RVOs suggested that for item b, instead of RVs, enrolled members should be considered as sometimes applicants take enrolment and complete the educational course but do not apply for registration as RV. Similarly, for item c, additional time to comply with the requirement should be provided till 31st March 2023.

9. Review of status submission of HYR (Half-yearly Report) from Oct 2020- Mar 2021-
It was noted that 12 RVOs have submitted their HYRs for the period of Oct 2020-Mar 2021. The RVOs which have not submitted the HYR were requested to submit the same at the earliest. ICAI RVO apprised that it will re-submit the HYR as some Registered Valuers have earlier not submitted their HYR due to the current pandemic.
10. RVOs to publish successful case studies in valuation during CIRP- RVOs were requested to publish the experience of the Registered Valuers on successful completion of assignments which were of a very challenging nature. These success stories could inspire others and also be a guide to other RVs, they may, therefore, be published on the website of the RVOs.
11. Findings of Peer Review Workshop held on 17th February 2021- Only 7 RVOs had put up the findings of the Peer Review Workshop on their websites. Other RVOs were requested to host the same on their websites.
12. Disciplinary Proceedings before the respective RVO-
It was also observed that in the proceedings in respect of an order of an RVO, it has been stated that the disciplinary proceedings were initiated on the directions of the IBBI, whereas no such directions were given to the RVO. This apart, several established norms were also flaunted. Taking note of the disposal of the disciplinary proceedings in such an aberrant manner, all the RVOs were advised to ensure the following:
a. The Registered Valuer against whom disciplinary proceedings are initiated cannot be a part of deliberations of the Disciplinary Committee (DC). If he is a member of the DC, he should recuse himself and the Committee should be reconstituted;
b. All the members of the DC shall be provided the necessary information and the relevant documents before the commencement of the proceedings of the DC.
c. RVOs should take an independent view on disciplinary matters concerning their members.
d. 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. (Action: RVOs)
13. Miscellaneous-
a. Guidance note on COVID impact on Valuation- At the request of the authority, Dr S K Gupta of ICMA RVO, Dr Prashant Sarangi of ICSI RVO, Ms Sarika Singhal of ICAI RVO, Mr Sunit K Gupta of CVSRTA RVA, and Mr. Sundeep Bansal of CEV IAF volunteered to prepare a note on the impact of COVID-19 on valuation. Others were also invited to contribute towards this initiative. (Action: RVOs)
b. Concerns regarding the Valuation Examination- 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 require attention, it can be brought to the notice of the Authority.

The suggestion regarding the conduct of the examination through proctoring would be considered and regarding the non-availability of slots, it was advised that the same was due to the lockdown and ongoing pandemic, but specific requests may be addressed to the division and these would be examined for possible resolution.

40th MEETING WITH THE MDs/CEOs OF REGISTERED VALUERS ORGANISATION HELD ON JULY 07, 2021 AT 11:00 AM

7. Review of status submission of HYR (Half-yearly Report) from Oct 2020- Mar 2021 While all the RVOs had confirmed the submission of the HYR from Oct 2020-Mar 2021, it was observed that some HYRs were incomplete. The RVOs were requested to scrutinize the HYRs to ensure that they are complete in all respect before they submit the same to the Authority.

9. Compliance of CPE hours by RVOs:
It was observed from the CPE compliance reports received from the RVOs that many RVs had not completed their CPE requirements for the financial year 2020-21. The issue was deliberated at length, and it was felt that during the last year the pandemic had caused disruption to the lives and livelihoods of many, and normal life was badly affected in large parts of the country. The RVOs were, therefore, of the opinion that a lenient view may be taken, in view of the special circumstances. The RVOs suggested that the CPE requirements for the two financial years may be clubbed so that an RV may do CPE of 32 hours by 31st March 2022 to meet their CPE compliances for FY 2020-21 and FY 2021-22. It was decided that this would be examined by the Authority.

10. Compliance with COP requirements:
RVOs were requested to have appropriate monitoring arrangements to ensure that an RV takes up a valuation assignment only after obtention of certificate of practice from the RVOs where they are enrolled as a member.

11. Risk-based monitoring of the members:
It was decided that RVOs shall adopt a risk-based approach in the monitoring of their members. RVs who are not in compliance with any requirements under the Rules may be subject to more focussed monitoring through the desktop mode and if required, through inspection.