The Companies Act, 2013 had brought the concept of Registered Valuers under Section 247 of the Companies Act, 2013 to regulate the practice of valuation in India and to standardize the valuation in line with the International Standards.
Ministry of Corporate Affairs vide its notification dated 18/10/2017 notified Section 247 and issued Companies (Registered Valuers and Valuation) Rules, 2017 after 3 years of commencement of the Act, 2013. As per the rules, a person is eligible to be a Registered Valuer, if he has passed valuation examination. However, syllabus, format and frequency of examination were left to be notified by the authority.
MCA vide its further notification dated 23/10/2017 has proposed to specify the Insolvency and Bankruptcy Board of India (IBBI) as the authority with respect to registration, recognition and ancillary matters related to valuers vested under Section 247.
On 30th December, 2017, the IBBI has published the syllabus, format and frequency of the valuation examination for the three asset classes of 'securities or financial assets', 'land and building' and 'plant and machinery'. A person seeking to become a 'valuer' requires to clear valuation examination in the respective area. These courses shall be delivered by Registered Valuers Organisations in not less than 50 hours.
With effect from 1st April 2018, it is mandatory for a 'valuer' to be registered with the IBBI as a registered valuer. A person currently rendering valuation services under the Companies Act, 2013, may continue without a certificate of registration up to 31st March 2018.
The IBBI had earlier on 27th December 2017 recognised two Registered Valuers Organisations, 'the Institution of Estate Managers and Appraisers' in the asset class of 'land and building' and 'the IOV Registered Valuers Foundation' in all three asset classes of 'land and building', 'plant and machinery' and 'securities or financial assets'.
It is a pre-requisite before registering with the IBBI that the valuer must fulfil four pre-requisite conditions of:
a. Must have necessary qualification and experience
b. Enrolled as a valuer member with a Registered Valuer Organisation (RVO)
c. Complete a recognised educational course conducted by the RVO
d. Pass valuation examination conducted by IBBI