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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:
Table 1
Transfer of Membership Before Registration as a Valuer with the Board
Sl.
No.
Action
by
Particulars / Requirements
Maximum
Timeline
(Days)
Page 2 of 5
(1)
(2)
(3)
(4)
1
Member A Member applies to the RVO (RVO-1), where he is enrolled as a
Member, seeking no objection to transfer his membership to
another RVO (hereafter RVO-2), along with:
(a) a transfer fee, as may be specified by RVO-1, which shall not
exceed Rs.500/-,
(b) any other amount due from the member to RVO-1, and
(c) membership certificate, if any.
T
2
RVO-1
If the application complies with the requirements against Serial
Number 1, RVO-1 shall issue:
(a) no objection to transfer of his membership, and
(b) a statement of educational course undergone by the Member
under rule 5 of the Rules,
within seven days of receipt of the application;
Or
If the application does not comply with the requirements against
Serial Number 1, RVO-1 shall inform the deficiency in the
application to the applicant within seven days of receipt of the
application.
If no response is received from RVO-1 within seven days of the
receipt of application, it shall be deemed that RVO-1 has issued no
objection to transfer of membership.
T+7
3
Member Where RVO-1 has informed the deficiency in the application, the
applicant shall address the same. If he does not address the
deficiency within seven days of being informed about deficiency,
the application shall stand closed at RVO-1.
T+14
4
RVO-1
After a Member has addressed the deficiency in the application in
accordance with the requirement against serial number 3, RVO-1
shall issue:
(a) no objection to transfer of his membership, and
(b) a statement of educational course undergone by the Member
under rule 5 of the Rules,
within seven days of addressing the deficiency in the application.
If no response is received from RVO-1 within seven days of
addressing the deficiency in the application, it shall be deemed that
RVO-1 has issued no objection to transfer of membership.
T+21
5
Member The Member shall apply to RVO-2 for enrolment in the manner
prescribed under the Rules, along with:
(a) no objection to transfer of his membership, and
(b) a statement of educational course undergone by the Member
under rule 5 of the Rules,
as issued by RVO-1, within seven days of receipt of no objection.
Where no objection is deemed to be issued, the Member shall apply
to RVO-2 for enrolment in the manner prescribed under the Rules,
along with:
T+28
T+14 (Deemed
no objection
under Serial
Number 2)
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(a) evidence of submission of application to RVO-1 seeking
transfer of membership,
(b) evidence of addressing deficiency in the application, if any,
required by RVO-1,
(c) evidence of educational course undergone by him under rule
5 of the Rules, and
(d) an undertaking that he has met all the requirements of
transfer of membership of RVO-1,
within seven days of issue of deemed no objection under the
requirements against Serial Number 2 or that of Serial Number 4, as
the case may be.
T+28 (Deemed
no objection
under Serial
Number 4)
6
RVO-2
RVO-2 shall process application for enrolment in accordance with
the Rules and shall inform the date of enrolment to RVO-1. The
Member shall seize to be a member of RVO-1 from such date of
enrolment.
As per Rules
Table 2
Transfer of Membership of a Registered Valuer (RV)
Sl.
No.
Action
by
Particulars
Timeline
(1)
(2)
(3)
(4)
1
RV
An RV applies to RVO-1, where he is enrolled as a Member,
seeking no objection to transfer his membership to RVO-2,
along with:
(a) a transfer fee, as may be specified by RVO-1, which
shall not exceed Rs.1000/-,
(b) any other money due from the Member to RVO-1,
(c) his membership certificate,
(d) his registration certificate,
(e) his certificate of practice, if any,
(f) a statement of assignments as an RV he is having on
hand under the Rules,
(g) a statement that no disciplinary proceeding, if any,
initiated by RVO-1 or the Board, is pending against
him, and
(h) a statement of complaints pending against him.
NA
2
RVO-1
If the application complies with the requirements against
Serial Number 1, RVO-1 shall forward the application to
the Board along with its views on transfer of membership to
RVO-2 and endorse a copy of the same to the applicant,
within seven days of receipt of the application;
Or
If the application does not comply with the requirements
Serial Number 1, RVO-1 shall inform the deficiency in the
application to the applicant within seven days of receipt of
the application.
T+7
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If no response is received from RVO-1 within seven days of
the receipt of application, it shall be deemed that RVO-1 has
no objection to transfer of membership.
3
RV
Where RVO-1 has informed the deficiency in the
application, the applicant shall address the same. If he does
not address the deficiency within seven days of being
informed about deficiency, the application shall stand
closed at RVO-1.
T+14
4
RVO-1
After the RV has addressed the deficiency in the application
in accordance with the requirement against Serial Number
3, RVO-1 shall forward the application to the Board along
with its views on transfer of membership to RVO-2 and
endorse a copy of the same to the applicant, within seven
days of addressing the deficiency in the application.
If no response is received from RVO-1 within seven days of
addressing the deficiency in the application, it shall be
deemed that RVO-1 has issued no objection to transfer of
membership.
T+21
5
RV
Where no objection is deemed to be issued, the RV shall
forward his application to the Board for transfer of
membership along with:
(a) evidence of submission of application to RVO-1
seeking transfer of membership, and
(b) evidence of addressing deficiency in the application,
if any, required by RVO-1,
within seven days of issue of deemed no objection under the
requirements against Serial Number 2 or that of Serial
Number 4, as the case may be.
T+14 (Deemed no
objection under Serial
Number 2)
T+28 (Deemed no
objection under Serial
Number 4)
6
Board
The Board may:
(a) grant permission to transfer of membership from RVO-
1 to RVO-2 or
(b) refuse permission to transfer of membership along with
reasons for refusal,
within seven days of receipt of the application and the views
of RVO-1 on transfer of membership to RVO-2 as referred
to in the requirements against Serial Number 2 or 4, as the
case may be.
The Board may:
(a) grant permission to transfer membership from RVO-1 to
RVO-2 or
(b) refuse permission along with reasons for refusal,
within seven days of receipt of the application from the
applicant for transfer of membership to RVO-2, as referred
to in the requirements against Serial Number 5.
T+21 (Application in
pursuance to Serial
Number (2)
T+35 (Application in
pursuance to Serial
Number (4)
7
RV
The RV shall apply to RVO-2 for enrolment in the manner
prescribed under the Rules, along with the permission
T+28 / T+42
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issued by the Board, within seven days of the receipt of the
permission.
8
RVO-2
RVO-2 shall process application for enrolment in
accordance with the Rules.
As per Rules
9
RVO-2
RVO-2 shall inform the Board and RVO-1 immediately on
enrolment of the RV, confirming therein the date of
enrolment. RV shall seize to be a member of RVO-1 from
such date of enrolment.
NA
10 Board
Upon receipt of information from RVO-2 as referred to in
the requirement against Serial Number 9, the Board shall
update its records, issue fresh Certificate of Registration to
RV and confirm the same to RV, RVO-1 and RVO-2.
11 RV
RV shall not take up any new assignment from the date he
applies for transfer to RVO-1 till the date he is enrolled as a
member by RVO-2.
NA
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
