PROCEDURE FOR REGISTRATION AS A REGISTERED VALUER BY AN INDIVIDUAL/PARTNERSHIP ENTITY UNDER DRAFT COMPANIES (REGISTERED VALUERS AND VALUATION) RULES, 2017

[Mr. M. GOVINDARAJAN]

Certificate of registration

Rule 2(1) (b) defines the expression ‘certificate of registration’ as the certificate of registration granted to a valuer under Rule 7(6) and the term ‘registration’ shall be construed accordingly.

 

Procedure for grant of certificate of registration

The eligibility conditions, disqualifications etc., are discussed in the  previous article. Rule 7 provides the procedure for grant of certificate of registration which is as detailed below-

• An individual eligible for registration may make an application to the Registration Authority in Form A of Schedule II;

• A non refundable application fee of ₹ 10,000/- drawn in favor of the Registration authority is payable;

• A partnership entity eligible for registration may make an application to the Registration Authority in Form B of Schedule II along with a non refundable fee of ₹ 10,000/- in favor of the Registration Authority or partnership entity;

• Form A contains the following details that are to be filled in by the applicant-

• Personal details;
• Educational, professional and valuation examination qualifications;
• Work experience;
• Additional information;
• Attachments-

o Copy of proof of residence;

o Copies of documents in support of educational qualifications, professional qualifications and valuation examination qualifications;

o Copies of documents demonstrating practice or work experience for the relevant period;

o Copies of documents demonstrating substantial involvement in valuation of assets as required;

o Copies of certificate of employment by the relevant employer, specifying the period of such employment;

o Income tax returns for the last three years;

o Copy of proof of membership with a valuation professional organization;

o Passport size photograph;

o Evidence of deposit of the fee;

• Affirmation;
• Verification by the valuation professional organization;

• Form B contains the following details that are to be filled in by the applicant-

• Details of partnership entity;
• Personal details of each partner;
• Educational, Professional and valuationexamination qualifications;
• Valuation professional Organization;
• Additional information;
• Attachments-

o Copy of proof of residence of itself and its partners;

o Copies of documents in support of educational qualifications, professional qualifications and valuation qualifications of partners;

o Financial statements/Income Tax Returns for the last three years;

o Copy of proof of membership with a valuation professional organization;

o Pass port size photo;

o Evidence of deposit of fee;

• Affirmation;
• Verification by the Valuation Professional Organization;

• The Registration Authority shall examine the application and give an opportunity to the applicant to remove the deficiencies, if any, in the application;

• The Registration Authority may require the applicant to submit, within reasonable time, additional documents or clarification that it deems fit;

• The Registration Authority may require the applicant to appear, within reasonable time, before the Authority in person, or through its authorized representative for explanation or clarifications required for processing the application;

• If the Registration Authority is satisfied, after such scrutiny, inspection or inquiry as it deems necessary, that the applicant is eligible under these Rules, it may grant a certificate of registration to the applicant to carry on the activities of a registered valuer for the relevant class of assets in Form C of the schedule II;

• The time limit for grant of certificate is sixty days from the date of receipt of the application;

• The time given by the Registration Authority for presenting additional documents, information or clarification or appearing in person is to be excluded from the time limit.

Conditions of registration

Rule 9 provides the conditions for granting registration which are as follows-

The valuer shall-

• at all times comply with the provisions of the Act and these Rules;

• at all times comply with the valuation standards;

• in his/its capacity as a registered valuer, not conduct valuation of the assets or class of assets other than for which he/it has been registered by the Registration Authority;

• take prior permission of the Registration Authority for shifting his/its membership from one valuation professional organization to another, after receiving no objection from both the concerned valuation professional organizations;

• take adequate steps for redressal of grievances;

• maintain records of all assignments undertaken by him/it under the Act and the Rules for at least three years from the completion of such assignment;

• comply with the Code of Conduct of the valuation professional organization of which he/it is a member;

• allow only the partner who is a registered valuer for the class of assets that are being valued to sign and act on behalf of it, where it is a partnership entity;

• be jointly and severally liable with the partnership entity which he is a registered valuer, of which he is a partner and on whose behalf he signs and acts in respect of a valuation assignment; and

• comply with such other conditions as may be imposed by the Registration Authority.

Refusal to grant certificate

Rule 8 provides the procedure for refusal to grant certificate of registration.  If the Registration Authority is of the prima facie opinion that the registration ought not be granted, it shall communicate the reasons for forming such an opinion within 45 days of receipt of the application.  This time limit will exclude the time given by the Registration Authority for removing the deficiencies, presenting additional documents or clarifications or appearing in person, as the case may be.

The applicant shall submit an explanation as to why his/its application should be accepted within 15 days of the receipt of the communication to enable the Registration Authority to form a final opinion.  After considering the explanation, if any, given by the applicant, the Registration Authority shall communicate its decision to accept the application along with the certificate of registration or reject the application by an order, giving reasons thereof.  Such order shall be passed within 30 days of receipt of explanation from the applicant.

Temporary surrender

Rule 10 provides that a valuation professional organization shall inform the Registration Authority if any valuer who is its member has temporarily surrendered his/its membership or revived his/its membership after temporary surrender, not later than 7 days from approval of his application for temporary surrender or revival.

Transitional arrangement

Rule 11 provides that a person who is allowed under any provision of the Act or rules made there under or any other law to act as a registered valuer may continue to act as such, without getting registered under these Rules, for a period not exceeding 6 months from the commencement of these rules.