Monitoring Policy

Monitoring Policy

Contents

1. Preamble
2. Objective
3. 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 Frequency of Monitoring
3.7 Evaluation of Valuer Member
3.8 Review of the Monitoring Policy

1. 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 activities and conduct of valuer 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.

2. Objective :-

The Registered Valuers Organisation are required to monitor the valuer membersas 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 valuer 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 valuer members, etc. The Policy also requires valuer members of RVO to submit certain information to RVO relating to the conduct of the Valuation process.

3. Framework :-

3.1 Information to be Submitted : -

The valuer member undertakes any engagement/assignment (ongoing and concluded) have to be reported 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 :-

i. Static Data
ii. 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 valuer member to continue as a 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 valuer members in the following events: -
a) At the time of enrolment
b) Updation of static data annually
c) Updation of static data if there is a change
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 valuer member.
In all cases, the valuer 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 valuer memberis required to submit information of each engagement/assignment twice a year i.e. as on 30th September and 31st March to M/s CEV Integral Appraisers Foundation.
The report shouldinter-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 valuer 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 valuer membersshall 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 valuer members - Date of fresh appointment
- Brief information about the new case awarded
- Proposed timelines for compliance with stipulations under the provisions of the Act, rules, regulations and guidelines issued there under.
- Steps proposed to be taken for discharge of responsibilities for the new and existing cases.
- Any conflict of interest likely to arise.

Periodicity of submission

a) Half Yearly Report as on 30th September and 31st March.
b) Report on Appointment as valuer membershall immediately, and in no case later than 15 days of such appointment
Apart from the above, the valuer 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 valuer member. The valuer 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 valuer members: -
a. the details of the appointments made under Companies (Registered Valuers and Valuation) Rules, 2017 and other applicable law;
b. summary of transactions conducted with stakeholders during the period of his appointment;
c. summary of transactions conducted with third parties during the period of his appointment; and d. 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 valuer members on the formats placed at Annexure-I for Static Data and Annexure-IIfor 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) Everyvaluer member is obliged to comply with the requirements of the Monitoring Policy.
(ii) The Monitoring Committee shall review the information and records submitted by the valuer members with the objective of monitoring the activities and conduct of each valuer 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 valuer member.
(iv) The guidelines set here should be strictly adhered to, failing which action against the valuer member 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 valuer member’s records wherever deemed necessary, with or without prior notice to the valuer 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 valuer members, pertaining to: -
a. the details of the appointments made other applicable laws;
b. the transactions conducted with stakeholders during the period of his appointment;
c. the transactions conducted with third parties during the period of his appointment; and d. the outcome of each appointment.
e. 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: a. ensuring the privacy of valuer members.
b. confidentiality of information received, except when disclosure of information is required by the Board or by law;
c. in a non-discriminatory; and
d. with proper safeguards, including Disaster Recovery Mechanism procedures.

3.6 Frequency of Monitoring

The Monitoring Committee shall monitor the conduct and activities of the valuer members on-going basis.

3.7 Evaluation of Valuer Members

The information obtained from valuer members shall be analyzed to verify whether the transactions conducted were in compliance with the Companies (Registered Valuers and Valuation) Rules, 2017 or other applicable laws.
The information collected from the valuer members will be evaluated on Quantitative and Qualitative Parameters, with a weight-age of 30:70 being assigned to the two respectively for facilitating the assessment.

3.7.1 Quantitative

1. Frequency of submission of reports
2. Delay in submission of information exceeding 15 days from stipulated timeline
3. Deviation from timelines prescribed under law/regulations
4. Transactions conducted with stakeholders/third parties
5. Number of warnings/strictures/penalties imposed till date of report
6. Number of incorrect submissions/ data falsifications, etc.
CEV Integral Appraisers Foundation
7. Number of disciplinary cases initiated, if any, with outcomes
8. Number of grievances raised, if any, with outcomes
9. Outcome of Inspection, if any.

3.7.2 Qualitative

1. Review of steps taken by the Valuer Member
2. Violations, if any, of theCompanies (Registered Valuers and Valuation) Rules, 2017 and other applicable law.
3. Effectiveness and timeliness of follow-up measures
4. Quality of reporting to Organization
6. Quality of citings/references
7. Quality of Interaction with Stakeholders
8. Valuation methodology/approach
9. 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 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 valuer memberwho have undertaken assignments would cover the above factors.

3.8 Review of the Monitoring Policy

The implementation of the Policy will be reviewed on quarterly intervals by the Monitoring Committee and half yearly 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/ Concluded Engagement/Assignment

Remarks:
Date:
Signature:
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
b) Non adherence todirections/regulations/laws, if any, withreasons;
c) Reasons for not maintaining timelines, ifany, separately;
d) Nature of condonation sought, ifapplicable, and adjudicating authority’sresponse thereto;
e) Any warnings or penalties or strictures
imposed by the competent authority
f) Initiation of legal action against the
valuer member Processes being handled by the valuer member;

Remarks:
Date:
Signature:
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

2.(b) Summary Report of Transactions with Stakeholders


S.No. Date of Transaction Amount (Rs.) Comments
Total

2.(c) Summary Report of Transactions with Third Parties


S.No. Date of Transaction Amount (Rs.) Comments
Total

2.(d) Outcome Report of Each Appointment


S. No. Key Items Comments

Remarks:
Date:
Signature:
Place: