RERA Registration Fees Structure...
RERA was introduced in the year 2016. RERA was implemented with a view to bring transparency an...
For the longest time, India needed a suitable legislation to resolve the rising problem of non-performing assent and strategic debt restructuring. In 2016, the government of India introduced the Insolvency and Bankruptcy Code, which ensures the time-bound resolution process for Insolvency and Bankruptcy proceedings of the company. The power and functions of the central government defined under section 247 of the Companies Act, 2013 has been delegated to the Insolvency and Bankruptcy Board of India (IBBI) as the authority for the registration of valuer under the Companies (Registered Values and Valuation) Rules, 2017 with effect from October 18, 2017.
Section 247 of Companies Act, 2013 provides for the individual/entity allowed to undertake the valuation process of any property, machinery and equipment, shares, debentures, stocks, securities and goodwill and any assets or liabilities of the registered company under the said legislation. Earlier valuation of assets was done arbitrarily by the valuer under the Companies Act and lacked authenticity and standardisation. The concept of registered valuer under IBC is ushered to regulate the valuation of assets and liabilities of the company and to optimise the valuation procedure at par with international valuation norms.
Rule 4 of the Companies (Registered Valuers and Valuation) Rules, 2017, provides qualifications and experiences for registering as Registered Valuer under IBC.
The no. of stages is required for registration as the Registered Valuer under IBC, which are discussed below:
Step 1– An applicant must seek primary membership of the Registered Valuers Organisation (RVO) as a valued member. On receipt of an application, RVO will scrutinise it to ensure that it qualifies for registration, including provisions of rules 3 and 4 of the Companies (Registered Valuers and Valuation) Rules, 2017. After confirming that the Rules have been adhered to, an applicant will be enrolled as a Valuer Member by RVO.
STEP 2- A compulsory 50 hours training programme with RVO has to be taken for the particular Asset Class for which registration as Registered Valuer under IBC.
STEP 3– Clear the selected asset class’s valuation examination conducted by IBBI.
A registered Valuer under IBC can get registered for all three assets for valuation.
The three assets are:
STEP 4– Submission of Form-A and necessary documents. After submitting Form-A, the applicant will send the same to the RVO for approval.Upon inspection of Form-A, RVO will approve the application; a link for making payment will be sent to the applicant’s email.
STEP 5– Online Payment of Application fees
An applicant has to pay the fees online using the received payment link. After online payment, the printout of the payment confirmation page shall be taken for future reference.
STEP 6– The submitted documents must include a Form-A, an Addendum to Form A, copies of documentary proofs you uploaded earlier, and proof of fee payment.
STEP 7– Upon receiving Form-A from the applicant, RVO shall:
RVO will provide the applicant with a scanned copy of the signed application (duly signed by both RVO and Applicant) for uploading on the portal after verifying the details filled in the application and the documentary proofs received. The following must be scanned:
STEP 8– The applicant must upload the received scan copy to the portal and submit it.
STEP 9– After online approval of applications by RVO, a physical copy is sent to the Insolvency and Bankruptcy Board of India (IBBI). The following must be included in the application:
STEP 10 –Before beginning practice as Registered Valuer under IBC, the applicant must receive a Certificate of Practice from the Registered Valuer Organisation(RVO) after the authority has granted registration.
According to the Companies (Registered Valuers and Valuation) Rules, 2017, the registered valuer should include the purpose of valuation of assets, procedures adopted, valuation methodology, and source of information.
From the above, it is clear that registered valuers under IBC are required to be appointed to determine fair and liquidation value for Insolvency and Bankruptcy. Registration of Valuer aims to improve the quality and credibility of valuations of assets and also helps stakeholders make an informed decision based on the valuation reports.
Read our Article: Provisions for Valuation by Registered Valuer under Companies Act, SEBI and IBC