Important decisions taken in monthly meetings with IBBI

1.) Online Delivery of Educational Courses and Continuing Professional Education by RVOs
The Insolvency and Bankruptcy Board of India (IBBI) has decided to further extend the validity of the online delivery of Educational Course and Continuing Professional Education being conducted by Registered Valuers Organisations, till further orders, under the Insolvency And Bankruptcy Board Of India (Online Delivery Of Educational Course And Continuing Professional Education By Insolvency Professional Agencies And Registered Valuers Organisations) Guidelines, 2020 (vide amendment dated 30th September 2022).

2.) Continuous Educational Programme (CEP) Requirements.
The Insolvency and Bankruptcy Board of India (IBBI) has examined the CEP requirements by Registered Valuers (RVs) and decided that he/she shall undertake a minimum of 10 CEP credit hours in each financial year (FY) and a minimum of 64 credit hours of CEP in the rolling block of 4 years. The current rolling block of 4 years for CPE is 2020-2024. In case the members join the RVO for part of the year, the RVO will credit the CEP hours on pro-rata basis, based on the date of registration.

3.) Additional Requirements to be counted for credit of CPE hours.

Sl. No. Learning Activity in the areas relevant for RVs Credit Hours
1. Workshops, Conferences, Seminars, Training Programmes, Refresher Programmes, Certificate Courses, Conventions and Symposia and the like Credit for the duration of technical sessions
2 Acting as faculty in any of the activities in Sl. No. 1 Equivalent to the duration of the activity
3 Publication of article in any national newspaper 4 hours
4 Publication of article in a journal of the Board, an IPA, a RVO, a Professional Institute, or a referred national or international journal bearing ISSN number 4 hours
5 Publication of a Book bearing an ISBN number 16 hours

4.) Review of status of submission of HYR (Half yearly Report) for the period from Oct 2022- Mar 2023.

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.

5.) 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.

6.) 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.

7.) 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.

8.) 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.

9.) 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

10.) 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.

11.) Peer review of Valuation Reports of members for the valuations undertaken by them during FY 2022-2023.
ICAI RVO conducted peer review of valuation reports for FY 2022-2023.

12.) 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).

13.) 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.

14.) 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.

15.) Submission of Half Yearly Reports

Half yearly report for October 2022 – March 2023 should be submitted.

16.) 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.