Important decisions taken in monthly meetings with IBBI
1.) Review of status of submission of HYR (Half yearly Report) for the period from Oct 2020- Mar 2021.
It was observed by IBBI that some HYRs were incomplete. So, members must submit the accurate and complete data to RVO for onward submission of the same to IBBI.
2.) Monitoring of the members.
It was decided that RVs who are not in compliance with any requirements under the Rules may be subject to a more focussed monitoring through the desktop mode and if required, through inspection.
3.) The clarification on utilization on CEP credit.
The IBBI has clarified that the CEP credit for a programme attended by the RV cannot be used to comply with the CPE requirements of multiple professions and can be used only once.
4.) Physical verification of tangible assets.
The point no 3.6(ii) of the Insolvency and Bankruptcy Board of India (Use of Caveats, Limitations and Disclaimers in Valuation Reports) Guidelines, 2020 provides as under:
‘3.6 Illustrative Caveats, Limitations, and Disclaimers in a Valuation Report not to be used…..
3.6 (ii) Physical Verification: RV giving a disclaimer that he has not physically verified the tangible assets in case where engagement is for providing liquidation value…..’
This provision seems to imply that physical verification of tangible assets is mandatory only for providing liquidation value. It is suggested that physical verification of tangible assets be made mandatory for all valuation under the Rules.
5.) Confirmation for Registered Valuers not conducting valuation for the asset class in which they are not registered.
The IBBI has requested RVOs to confirm that all RVs enrolled with them through an e-mail or a letter that none of their members are accepting/ conducting valuation for the asset class under which they are not registered with the Board.
6.) Status of compliance of CEP by RVs.
The CEP compliance report of all RVs shall be submitted to the IBBI within one month from the end of each Financial Year i.e., 30th April of the following year.
Only the technical sessions will be counted by RVOs for crediting the CEP credit hours to the RVs
7.) RVs conducting valuation not registered with specified asset class.
RVs shall not accept assignment related to an Asset Class for which they are not registered and in case there has been such violation, appropriate action may be initiated against the RV under advice of the Board.
8.) Peer review of Valuation Reports of member RVs for the valuations undertaken during October 2019- March 2020.
The RVOs should conduct the peer review of their member RVs for the valuations undertaken during October 2019– March 2020 by 31st January 2021. One-day workshop would be organized on 17th February 2021 to present outcomes from the peer review exercise. The ICAI RVO would lead in organizing the workshop.
9.) Valuations Job under Companies Act, 2013/ Insolvency Bankruptcy Code
Registered Valuers are requested not to undertake any Valuation assignment under Companies Act, 2013/ the Insolvency and Bankruptcy Code 2016 from any person who is not an IP/RVE (Vide Circular no. IBBI / RV/019/2018 dated 17.10.18).
10.) CEP to be conducted by RVOs under Rule 12(2)(e)
Only the RVOs which have enrolled the registered valuers, shall organise CPE as provided in Rule 12(2)(e)".
All RVs are required to mandatorily complete 16 CPE hours during each financial year.
11.) Security Audit
RVOs shall get the security audit of the IT platform and their website conducted by an accredited agency and submit report of the same to the Board. The recommendations of the auditors should be implemented by the RVOs.
12.) Submission of Half Yearly Reports
The Half Yearly Reports for April 2020- September 2020 should be submitted with the Board at the earliest possible.
13.) Grievance Redressal cell
IBBI in its meeting gave instructions to all the RVOs that fees for lodging a complaint in the Grievance Redressal cell shall not be in excess of Rs. 1000/- + GST in favour of IBBI.