Understand everything about an IBBI Registered Valuer

Quick Legal Answer

An IBBI Registered Valuer is a professional registered with the Insolvency and Bankruptcy Board of India (IBBI) who is authorised to determine the fair value of assets such as land, buildings, machinery, securities, and financial assets. These valuers play an important role in insolvency proceedings, mergers, taxation, loans, and legal disputes.

Registered valuers are governed by the Companies Act, 2013 and the Companies (Registered Valuers and Valuation) Rules, 2017.

The process usually involves:

• Obtaining required educational qualifications and experience
• Completing a recognised valuation course
• Clearing the IBBI valuation examination
• Registering with a Registered Valuers Organisation (RVO)
• Applying for registration with IBBI
• Receiving certificate of registration as a valuer
• Conducting asset valuation as per legal and professional standards
• Preparing and issuing valuation reports for legal or financial purposes

Jurisdiction & Applicability

This applies to:

• Asset valuation matters in India
• Insolvency and bankruptcy proceedings
• Company mergers, acquisitions, and restructuring
• Property, plant, machinery, and securities valuation
• Banks, financial institutions, companies, and legal authorities
• Valuation under Companies Act and IBBI regulations

When This Applies

Use this when:

• Valuation of assets is legally required
• Insolvency or bankruptcy proceedings are initiated
• Companies need valuation for mergers or compliance
• Banks require valuation for loans or mortgages
• Property or business valuation is needed for legal matters
• Financial reporting or taxation requires certified valuation

When This Does NOT Apply

This does not apply to:

• Informal property price estimates without legal validity
• Unregistered individuals offering unofficial valuations
• Criminal investigations unrelated to asset valuation
• Personal opinions on market value without certification
• Real estate brokerage activities without valuation registration

If you are someone who wants to get on board an IBBI Registered Valuer or want to become an IBBI Registered Valuer, then we will help you navigate through the process along with the perks, roles and responsibilities associated with it. So, let’s move forward in understanding it in a better way!

Introduction to IBBI Registered Valuer 

Who is a Registered Valuer?

IBBI stands for the Insolvency and Bankruptcy Board of India. It is an institution established that is responsible for the regulation of the valuation profession in India. 

These IBBI-registered valuers are those professionals who have been authorised by the IBBI to Provide Valuation services regarding various assets such as land, buildings, securities, stocks, financial assets, plant, and machinery. The valuers appointed by the IBBI play a crucial role in the process of insolvency and bankruptcy by determining the fair market value of the assets involved. 

What are the Roles and Responsibilities of the IBBI Registered Valuers?

• Conducting Independent Valuation: The main job of a valuer appointed under the IBBI is to conduct independent and unbiased valuations of different assets of the company that has come under the purview of the Insolvency Proceedings. 

• Assessing the Fair Market Value of the Debtor’s Assets: This role of the IBBI Registered Valuer is an extension of the above point, where the valuer is required to determine the fair market value of the assets of the debtor. 

• Maintaining the Higher Standards: The Registered Valuer is required to maintain the higher professional standards and ethical standards in their work. 

• Ensuring Compliance: The Registered Valuers are required to ensure compliance specified under the Insolvency and Bankruptcy Code, 2016 and the various rules and regulations specified by the Insolvency and Bankruptcy Board of India. 

• Up-to-date Knowledge and Skills: The IBBI Registered Valuers are required to keep their knowledge and skills up-to-date with the latest trends and the regulatory changes happening within the law.

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What are the Benefits of being an IBBI Registered Valuer?

• Recognition: Due to the diverse roles and responsibilities entrusted upon the IBBI registered valuers, it brings a lot of professional recognition and enhanced credibility for these valuers working in the valuation industry.  

• Fulfilling the Regulations: One of the main jobs of an IBBI Registered Valuer is to comply with the rules and regulations laid down by the IBBI and this is why the valuers become more aware of such rules and regulations. 

• Generation of Higher Income: Due to the fact that the IBBI Registered valuer’s professional recognition is increased, which in turn helps them to have an increased demand for their valuation services, thereby leading to a higher income potential.

• Higher Professional Cases: As the IBBI Registered Professionals are required to closely work with the companies that are undergoing the insolvency proceedings, there is a high chance of them working on high-profile bankruptcy and insolvency cases. 

• Professional Development: This benefit is the extension of the other points, which states that these IBBI Registered Valuers work on high-profile cases, which gives them the opportunity to closely work with professionals working in the same industry, leading to professional growth. 

What are the Eligibility Criteria for Registering as an IBBI Registered Valuer? 

Classes of the Assets	Qualifications for becoming an IBBI Registered Valuer	Experience in the Industry
Plant and Machinery	The Person is required to be a Graduate or postgraduate in any of the following categories:Electrical MechnicalElectronic and CommunicationProductionChemiclesTextileElectronic and InstrumentationLeatherMetallurgy Aeronautical Engineering Graduate in the Valuation of Plant and Machinery or something equivalent to it	Five Years of Experience in the case of a Graduate and Three Years of Experience in the case of a post-graduate is required in any of the mentioned fields
Building and Land	The Person is required to be a Graduate in: Civil Engineering orTown Planning or any programme equivalent to it or Archieture  A Post-Graduate in any of the above categories and at the same time in the valuation of the building and land or Real Estate Valuation (a two-year full-time post-graduation course)	Five Years of Experience in the case of a Graduate Three Years of Experience in the case of a Post-Graduate
Financial Assets or the Securities	The Person is required to be a Graduate in any of the following fields  Member of the Institute of Cost Accountants of India Member of the Institute of Chartered Accountants of IndiaMember of the Institute of the Company Secretaries of India Member of the Business Administration orPost-Graduate Diploma in Business Management (specialised in finance)  The Person must be from Finance in the case of the Post-Graduate	Three Years of Experience in the case of a Graduate

Now, let’s understand the Educational Qualification and the Experience Required for the Individual Application to become an IBBI Registered Valuer: 

• A Post – post-graduate degree or Post – post-graduate diploma in the specified industry from an Institute or University established, recognised or incorporated by law in India with at least three years of experience in the specified discipline. 

• A Bachelor’s degree or an equivalent degree in the specified field from an Institute or University established, recognised or incorporated by law in India with at least five years of experience in the specified discipline. 

• The Membership of a professional institute established by an Act of Parliament, which is enacted for the purpose of regulating a profession, having at least three years of experience after the closure of the membership. 

By looking at the above conditions, it can be concluded that one can become a Registered Valuer in all the Classes or for any one of the classes based upon the qualification and the classification of becoming an IBBI Registered Valuer. 

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The Process of Registering as an IBBI Registered Valuer 

• Registering with the Registered Valuer Organisation: The first step in the process of becoming an IBBI Registered Valuer is to attend the mandatory 50 hours of training from any of the Registered Valuer Organisation (RVO) as mentioned on the IBBI official website. The organisation will charge around Rs. 20,000 to Rs. 25,000. A Person is free to choose any RVO, as each of the RVOs is registered as a separate Private Institute under the IBBI. After the completion of the 50-hour training, the RVO issues a Certificate of Completion of the training. 

• Obtaining the Relevant Experience: The applicant, after enrolling in the training programme, is required to acquire at least three years of the post – post-qualification experience in the relevant field. 

• Scheduling of the Examination: As we have already discussed in the last part that the applicant, after obtaining the 50-hour certificate, can apply for the examination in order to register themselves as the IBBI Registered Valuer. The examination will be conducted online by registering on the website and paying fees of Rs. 5,900 per attempt and the examination center is NISM. Though there is no limit on the number of attempts one can take but the cooling period between two consecutive attempts is 2 months and the passing marks for an individual are 60 out of 100 marks. 

• Registration under the IBBI: After successfully completing the examination, the next step in the process is to apply with FORM-A on the IBBI website with the provisional mark sheet (which has been received at the exam centre). There is no need to wait for obtaining of the official Passing Certificate from the IBBI. 

Besides, after passing the examination, the applicant is required to apply for the Certificate of Practice within 3 years, which means that they are required to quit their current job in order to obtain the Certificate of Practice. 

The applicant is required to submit the Registration and the Certificate of Practice to the same RVO from which the Training Certificate has been obtained. If the applicant chooses to shift it to another RVO, by following the prescribed procedure. One can start their Practice once after receiving their Certificate of Practice from the ROV.  

Relevance of the IBBI Registered Valuers Examination

As we have already discussed the process of the IBBI Registered Valuer Examination, it is imperative that the applicant must pass the examination with 50%, as the examination assesses their knowledge of the valuation principles in different fields, relevant rules, regulations and practices. The examination is conducted online which consists of multiple-choice questions. The study material and the syllabus of the examination is provided by the IBBI. 

How to Choose the Right IBBI Registered Valuer for the Business?

• Qualification: The desired qualification is the most important prerequisite while choosing a valuer for the business. Therefore, a business is required to ensure that the valuer holds the necessary certificates and the qualifications from the recognsied institutions. 

• Experience: The valuer must possess the relevant experience in the specific asset classes which is totally relevant to your business.  

• Economical: One of the key aspects that must be kept in mind by the company is choosing a registered valuer which possess the necessary qualification and expertise in the class of the assets, but at the same time charges a reasonable and transparent price. 

• Reputation: The valuer must possess a good reputation in the industry and always be recommended by the business and other professionals. 

• Communication: The valuer must possess good communication skills so that they can effectively provide responses to your queries and at the same time provide responses to third parties (if any). 

Registered Valuer Entities 

Apart from the IBBI Registered Valuer Individuals, there are also Registered Valuer Entities, which are referred to as the registered partnership firm or the company that has been recognised by the IBBI for providing professional valuation services under the norms specified under the Companies (Registered Valuers and Valuation Rules), 2017. 

What are the Eligibility Criteria for Registered Valuer Entities?

Rule 3(2) of the Companies (Registered Valuers and Valuation) Rules, 2017 defines the eligibility criteria: 

• The Partnerships or the LLPs are required to focus on providing the financial or professional services, which should also include Valuation. If it is a company, then it is required to be linked as a joint, subsidiary, or associate to another corporate entity. 

• The LLP/Company/Partnership Company, which is aiming to register itself as the Registered Valuer, must have at least one Partner registered under the specific asset that is intended for the valuation.   

• Three Partners or all the partners of the Partnership Entity/LLP/Company, whichever is lower, must register as the Registered Valuer. 

• The LLP/Company/Partnership Company should not be going through the Insolvency Resolution or be an Undischarged Insolvent. 

What are the Benefits of the Registered Valuer Entity?

• Trust of the Clients: With the benefit of the Registered Valuer Entities, the clients are satisfied that the company is operating within the legal and ethical boundaries of their legal framework. 

• Established Reputation: This point is the extension of the above point, as the companies enjoy a professional reputation which allows the clients to build a reputation with them. 

• Expands Horizons: With the registration as a Valuer Entity, the companies enjoy diverse opportunities which foster collaborations, participations in various valuation projects in both the private as well as public sectors. 

• Ensuring Compliance: Registering as a Registered Valuer gives the confidence to the clients that the company has followed all the applicable rules, regulations and compliances. 

What are the documents required for registering as a Registered Valuer?

• Filing of the Application: In order to register, a detailed application form is required to be filled out as the pre- prerequisite for being entitled to the Entity Membership. The application must consist of the following:

• The basic details of the Entity 
• Director/Partner Details
• Documents such as the Registration Certificate, IBBI Registration Certificate of all the directors, Copy of the Membership Certificate with the Registered Valuers Organisation of all the Directors, List of the Partners as on the date of the application and the Payment, PAN Card of the directors, and the Registered Partnership Deed. 

Process of becoming a Registered Valuer Entity 

In order to become a Registered Valuer Entity (RVE), the first step that must required to be completed is to visit the website IOV Registered Valuers Foundation. By registering on the platform, the company can establish a robust economic standing for the entity amongst the valuation companies. 

Conclusion

An IBBI Registered Valuer is a person or an organisation that has been appointed by the IBBI for carrying out the valuation of the asset classes. There are some requirements which these people or organisations are required to comply with in order to register themselves to act as the Registered Valuer. 

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Citations

1. IBBI Registered Valuer

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. Laws, procedures, fees, and timelines may vary depending on the state and individual circumstances. For advice specific to your situation, please consult a qualified legal professional.