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Recognised registered valuer organisations and registered valuers follow a set process to transfer membership from one registered valuer organisation to another. The member submits an application, a transfer fee, and dues to the current organisation. The current organisation issues a no objection or lists any deficiency within seven days. If the current organisation does not respond within seven days, the no objection is deemed issued. For a registered valuer, the board grants or refuses permission to transfer. The registered valuer applies to the new organisation for enrolment. The registered valuer does not take new assignments from the date of the transfer application until enrolment by the new organisation. All correspondence uses registered email addresses.
What you must do
Who is affected
Thresholds
Exceptions
If you do not comply
Ask about this circular
Insolvency and Bankruptcy Board of India $7^{\text{th}}$ Floor, Mayur Bhawan, Connaught Place, New Delhi-110001.
CIRCULAR
No. IBBI/RVO/029/2020
$28^{\text{th}}$ 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.
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.
It has been repeatedly brought up by the RVOs in the various meetings, the Board is having with MDs/CEOs of RVOs on $7^{\text{th}}$ 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.
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) |
|---|---|---|---|
| 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: |
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:
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:
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+14 (Deemed no objection under Serial Number 2)
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 | 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: |
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. | T+7 | | 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.
