press trust of india
New Delhi, Jan 1: Professionals carrying out asset valuations under Companies Act and Insolvency and Bankruptcy Code will have to get themselves registered with Insolvency Bankruptcy Board of India (IBBI) from April to conduct such activities, an official statement said Monday.
“With effect from April 1, 2018, for conducting valuations required under the Companies Act, 2013, and the Insolvency and Bankruptcy Code, 2016, a person is to be registered with the IBBI as a registered valuer,” the Ministry of Corporate Affairs said in a statement.
A government notification in October had delegated powers and functions to the IBBI under Companies Act and designated it as the authority under the Companies (Registered Valuers and Valuation) Rules, 2017.
According to the notification, a valuer needs to have necessary qualification and experience, a member of a recognised valuer organisation and should be registered with IBBI to carry out such activities.
Besides, a person is required to complete a recognized educational course conducted by a Registered Valuer Organisation (RVO) and pass valuation examination conducted by the IBBI.
“A person, who is rendering valuation services under the Companies Act, 2013, may continue to do so without a certificate of registration up to March 31, 2018,” it added.
The ministry said that a registered valuer can conduct valuations under any other law, if required or permitted under that law or the concerned authority.
The IBBI has recognised the Institution of Estate Managers and Appraisers in the Asset Class of Land and Building and the IOV Registered Valuers Foundation in the Asset Classes of (i) Land and Building (ii) Plant and Machinery, and (iii) Securities or Financial Assets are two RVOs.
The Authority has also specified details of educational course for the Asset Class of Securities or Financial Assets.