Eligibility for registered valuers organizations

An organization that meets requirements under sub-rule (2) may be recognition as a registered valuers organization for valuation of a specific asset class or asset classes if-

i) It has been registered under section 25 of the Companies Act, 1956 (1 of 1956) or section 8 of the Companies Act, 2013 (18 of 2013) with the sole object of dealing with matters relating to regulation of valuers of an asset class or asset classes and has in its bye laws the requirements specified in Annexure-III.

ii) A professional institute established by an Act of Parliament enacted for the purpose of regulation of a profession;

Provided that, subject to sub-rule (3), the following organizations of the company may also be recognized as a registered valuers organization for valuation of a specific asset class or asset classes, namely:

a) An organization registered as a society under the Societies Registration Act, 1860 (21 of 1860) or any relevant state law, or

b) An organization set up as a trust governed by the Indian Trust Act, 1882 (2 of 1882).

The organization referred to in sub-rule (1) shall be recognized if it.

a) Conducts educational courses in valuation, in accordance with the syllabus determined by the authority, under rule 5, for individuals who may be its valuers members, and delivered in class room or through distance education modules and which includes practical training;

b) Grants membership or certificate of practice to individuals of the company, who possess the qualifications and experience as specified in rule 4, in respect of valuation of asset class for which it is recognized as a registered valuers organization.

c) Conducts training for the individual members before a certificate of practice is issued to them;

d) Lays down and enforces a code of conduct for valuers who are its members, which includes all the provisions specified in Annexure-I.

e) Provides for continuing education of individuals who are its members;

f) Monitors and reviews the functioning, including quality of service, of valuers who are its members; and

g) Has a mechanism to address grievances and conduct disciplinary proceedings against valuers who are its members.

A registered valuers organization, being an entity under proviso to sub-rule (1), shall convert into or register itself as a company under section 8 of the Companies Act, 2013 (18 of 2013), and include in its bye laws the requirements specified in Annexure-III within one year from the date of commencement of these rules.

Application for recognition

An eligible organization which meets the conditions specified in rule 12 may make an application for recognition as a registered valuers organization for asset class or classes to the authority in Form-D of the Annexure-II along with a non-refundable application fee of rupees one lakh in favor of the authority. The authority shall examine the application of company registration in madurai, and may grant twenty-one days to the applicant to remove the deficiencies, if any, in the application. The authority may require the applicant to submit additional documents or clarification within twenty-one days. The authority may require the applicant to appear, within twenty-one days, before the Authority through its authorized representative for explanation or clarifications required for processing the application. If the 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 recognition as a registered valuers organization of the company in Form-E of Annexure-II. If, after considering an application made under sub-rule (1), the authority is of the prima facie opinion that recognition ought not to be granted, it shall communicate the reasons for forming such an opinion within forty-five days of receipt of the application, excluding the time given by it for removing the deficiencies, presenting additional documents or clarifications., or appearing through authorized representative, as the case may be. The applicant shall submit an explanation as to why its application should be accepted within fifteen days of the receipt of the communication under sub- rule (6), to enable the authority to form a final opinion.

After considering the explanation, if any, given by the applicant under sub- rule (7), the authority shall either-

a) Accept the application and grant the certificate of recognition; or

b) Reject the application by an order, giving reasons thereof.

The authority shall communicate its decision to the applicant within thirty days of receipt of explanation.

Conditions of Recognition

The recognition granted under rule 13 shall be subject to the conditions that the registered valuers organization shall-

a) At all times continue to satisfy the eligibility requirements specified under rule 12;

b) Maintain a register of members who are registered valuers of the company, which shall be publicly available.

c) Admits only individuals who possess the educational qualifications and experience requirements, in accordance with rule 4 and as specified in its recognition certificate of company registration in madurai, as members.

d) Make such reports to the authority as may be required by it;

e) Comply with any directions, including with regard to course to be conducted by valuation organization under clause (a) of sub-rule (2) of rule 12, issued by the authority;

f) be converted or registered as company under section 8 of the Act, with governance structure and bye laws specified in Annexure-III, within a period of one year from the date of commencement of these rules if it is an organization referred to in proviso to sub-rule (1) of rule 12;

g) Shall have the governance structure and incorporate in its bye laws the requirements specified in Annexure-III within one year of commencement of these rules if it is an organization referred to in clause (i) of sub-rule (1) of rule 12 and existing on the date of commencement of these rules;

h) Display on its website, the status and specified details of every registered valuer being its valuer members including action under rule 17 being taken against him; and

i) Comply with such other conditions as may be specified by authority.