Advisory for Registered Valuers Members regarding usage of Technology based Platform in Valuation

Dear Members,

Greetings from IOV-RVF!!

 

It is in the interest of our profession to stress on the use of technology in Valuation with repository of authentic information and data for the benefit of not only the RVs, but also for the users and the concerned Authorities like IBBI and banking sector. However, on the basis of the latest information received, a cautious approach is required before adoption of any such technology based platforms. A few of the observations which may lead to irregularities are listed below: -

 

• Possibility of Data Aggregation and its manipulation to impair the human capabilities;
• Potential threat of Data theft;
• Potential threat for monopolising the eco system of Valuation services;
• Possibility of becoming intermediary between the Professional Valuer and Valuation service User, influencing the fairness of Valuation

 

In this regard, some of the relevant clauses of Companies (Registered Valuers and Valuation) Rules, 2017 are being reproduced here for ready reference of members: -

 

S No.	Heading	Rule No.	Description
1	Chapter II	7(b)	Compliance by RVs of provisions of the Act 2013, Rules 2017 and the Bye-laws of respective RVO
		7(g)	Compliance by RVs of the Code of Conduct of respective RVO
2	Chapter III	12(2)(d)	RVOs to lay down and enforce a code of conduct for its RV members
		12(2)(f)	RVOs to monitor and review the functioning including quality of services of its RV members
3	Annexure I	Clause 6	RVs to render high standards of service, exercise due diligence and independent professional judgment
		Clause 20	RVs shall not use or divulge to other clients or any other party any confidential information about the client
		Clause 21	RVs to maintain written records for any decision taken, reasons and evidence in support of such decision
		Clause 23	RVs to provide all information and records as may be required by the authority, the Tribunal, Appellate Tribunal, RVO or any other statutory regulatory body
4	Annexure III	Clause 15	RVOs to ensure Monitoring Policy for its members to monitor their professional activities and adherence of the Act, rules, bye-laws and directions of IBBI
		Clause 16	RVs to submit information about ongoing and concluded engagements at least twice a year to RVO stating the dates of assignment and valuation report

 

In view of above, IOV-RVF, a Frontline Regulator, hereby advises its RV Members not to use any technology platform which may be violative of the Companies Rules, 2017.

 

Thanks and Regards

Sd/-

Vinay Goel

MD & CEO

IOV-Registered Valuers Foundation