Transfer of Membership from one RVO to another – Circular No. IBBI/RVO/029/2020 dated 28.01.2020 – IBC

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Insolvency and Bankruptcy Board of India
7th Floor, Mayur Bhawan, Connaught Place, New Delhi-110001

CIRCULAR

No. IBBI/RVO/029/2020, 28th January, 2020

To
All Recognised Registered Valuer Organisations
All Registered Valuers
(By mail to registered email addresses and on website of the Board)

Dear Madam / Sir,

Subject: Transfer of Membership from one RVO to another.

The Companies (Registered Valuers and Valuation) Rules, 2017 (Rules) envisage Registered Valuer Organisations (RVOs) to act as front-line regulators for development and regulation of the valuation profession. They have the responsibility to admit, groom, monitor and discipline the members of the profession, and while doing so, they must follow well established norms of governance befitting a regulatory State. Keeping their responsibilities in view, the Rules prescribe the composition of Governing Board of an RVO, and manner of discharge of its powers and functions. The reputation of the valuation profession and the professional members hinges on the reputation of the RVO concerned. Being the new entities in the regulatory space, the conduct and performance of RVOs are being watched very closely by the stakeholders.

2. The Rules envisage a competitive industry of RVOs, where they compete with one another to provide better valuation services through their professional members, in the interest of the users, and other stakeholders of valuation services. The Rules also envisage that a member may shift membership from one RVO to another, subject to prior permission of the Authority, that is, the Insolvency and Bankruptcy Board of India (Board) for the same. The Rules further require an RVO to employ fair, reasonable, just and non-discriminatory practices for enrolment and regulation of its members.

3. It has been repeatedly brought up by the RVOs in the various meetings, the Board is having with MDs/CEOs of RVOs on 7th of every month, that a few RVOs are restricting transfer of membership by using dilatory tactics, charging unreasonable transfer fee, etc. It has been the endeavour of the Board that the RVOs mutually agree to a mechanism for seamless transfer of a member from one RVO to another. It has been impressed on them to avoid restrictive and unreasonable practices and to allow transfer of membership expeditiously, after recovering dues, if any, pending from the member concerned and charging a reasonable fee to cover the expenses on transfer. However, the problem persists.

4. In order to streamline the process of transfer of membership from one RVO to another, the RVOs are directed to follow the process as outlined under the Tables below: (Please see the attachment bellow for Table 1 and Table 2)

5. In case an RV, which is an entity, seeks transfer of membership from RVO-1 to RVO-2, the process outlined under Table 2 shall be followed in respect of the RV entity.

6. The respective timelines stated above, if ending on a Public Holiday, will stand extended to the next working day. However, public holidays falling in between the timelines shall not result in any extension of timeline.

7. All correspondences for this purpose among and between a Member, RV, RVOs and the Board shall be made only by e-mail from the email address registered with and displayed on the website of the Board Further, the e- mail id for correspondence with the Board shall be valuer@ibbi.gov.in.

8. This is issued in exercise of the powers under clause (d) of rule 7, and clauses (e) and (i) of rule 14 of the Companies (Registered Valuers and Valuation) Rules, 2017.

Yours faithfully,
-Sd-
(Debajyoti Ray Chaudhuri)
Chief General Manager

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