The Central Government notified the commencement of Section 247 (relating to valuers) of the Companies Act, 2013 with effect from 18th October, 2017. It also notified the Companies (Registered Valuers and Valuation) Rules, 2017 on 18th October, 2017.
The Central Government, vide a notification dated 23rd October, 2017, issued the Companies (Removal of Difficulties) Second Order, 2017 to provide that valuations required under the Companies Act, 2013 shall be undertaken by a person who, having the necessary qualifications and experience, and being a valuer member of a recognised valuer organisation, is registered as a valuer with the Authority. Vide another notification on the same date, the Central Government delegated its powers and functions under section 247 of the Companies Act, 2013 to the Insolvency and Bankruptcy Board of India (IBBI) and specified the IBBI as the Authority under the Companies (Registered Valuers and Valuation) Rules, 2017.
The Companies (Registered Valuers and Valuation) Rules, 2017, as amended, require that only a person registered with the IBBI as a registered valuer can conduct valuations required under the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016 with effect from 1st February, 2019. Subject to meeting other requirements, an individual is eligible to be a registered valuer, if he (i) is a fit and proper person, (ii) has the necessary qualification and experience, (iii) is a valuer member of a RVO, (iv) has completed a recognised educational course as member of a RVO, and (v) has passed the valuation examination conducted by the IBBI, and (vi) is recommended by the RVO for registration as a valuer. A partnership entity or a company is also eligible for registration subject to meeting the requirements. A person, who is rendering valuation services under the Companies Act, 2013, may continue to do so without a certificate of registration up to 31stJanuary, 2019.
In pursuance of the Rule 5 (3) of the Companies (Registered Valuers and Valuation) Rules, 2017, the IBBI, being the Authority, had published thesyllabus, format and frequency of the Valuation Examination for the Asset Class of ‘Securitiesor Financial Assets’ on 30thDecember, 2017 and for the Asset Classes of (a) Land and Building, and (b) Plant and Machinery on 31st December, 2017 and has been conducting examination since 31st March, 2018.
In pursuance of the said Rule, the IBBI, being the Authority, hereby publishes the syllabus, format and frequency of the ‘Valuation Examination’ to be conducted from1st April, 2019 for the asset classes as under:
b. Land and Building
c. Securities or Financial Assets
Format of Examination
The format of examination is as under:
a. The examination is conducted online (computer-based in a proctored environment) with objective multiple-choice questions;
b. The duration of the examination is 2 hours;
c. A candidate is required to answer all questions;
d. A wrong answer attracts a negative mark of 25% of the marks assigned for the question;
e. A candidate needs to secure 60% of marks for passing;
f. A successful candidate is awarded a certificate by the Authority;
g. A candidate is issued a temporary mark sheet on submission of answer paper; and
h. No workbook or study material is allowed or provided.
i. A candidate may use a calculator which does not have memory.
j. No mobile phone is allowed.
Frequency of Examination
The frequency of Examination is as under:
i. The Examination is available from a number of Examination Centres across the country.
j. The examination is available on every working day.
k. A candidate may choose the time, the date and the Examination Centre of his choice for taking the Examination. For this purpose, he needs to enrol and register at https://valuationregistration.bsebti.com. .
l. A candidate needs to pay an Examination fee of Rs.1500 (One thousand five hundred rupees only) online on every enrolment.