Registered Valuer India: Eligibility, ICAI RVO Training & NISM Exam

1. Understanding the Registered Valuer Role and Initial Steps

The journey to becoming a Registered Valuer involves six key steps. The first crucial step is to verify your eligibility.

2. Verifying Your Eligibility

To be eligible, you must possess at least 3 years of post-qualification experience if you are a Chartered Accountant (CA). Your membership number is essential, but a Certificate of Practice (COP) is not mandatory; even if you are employed, you can be eligible after gaining three years of experience post obtaining your membership number.

Besides CAs, professionals like Company Secretaries (CS), Cost and Management Accountants (CMA), and MBAs in Finance are also eligible. However, this guide will primarily focus on the process for CAs. In essence, 3 years of post-qualification experience is the fundamental criterion.

3. Enrolling with ICAI RVO and Completing the Mandatory Training

The next step is to enrol with the ICAI Registered Valuers Organisation (RVO). You need to visit their website, icairvo.in.

• On the website, you’ll find a sign-in button at the top.
• Click on it and choose the register option.
• You can register using your mobile number and OTP.
• After registering, you need to fill in your basic details.
• Once logged in, you should look for the 50-hour training batches that are available. You can select your preferred batch here.
• You will also need to fill out the Primary Membership form on the portal, which typically gets approved within a day or two.
• After your primary membership is approved, navigate to course enrolment and select “Educational Course for Securities of Financial Asset Class 50 Hours Training”.
• The fee for this 50-hour educational course is ₹15,000 plus GST, totalling ₹17,700.
• This training is provided by ICAI with experienced faculty.
• It is mandatory to keep your camera on throughout the entire 50-hour training. Ensure you allocate sufficient time before joining a batch.
• If you do not see any available training batches, you should email ICAI RVO. You can reply to the approval email for your primary membership and request to be added to the waitlist for the next batch. ICAI RVO is known for its good coordination in this regard .
• Before attending the 50-hour training, you need to have your primary membership, for which there is a fee of ₹5,000 plus 18% GST, amounting to ₹5,900 .
• Therefore, the total fees payable to ICAI RVO are ₹23,600 (₹5,900 for primary membership + ₹17,700 for the educational course) .

4. Clearing the NISM Valuation Examination

After completing the 50-hour training, the next crucial step is to pass the NISM valuation examination at a designated centre .

• The exam fee is ₹5,000 plus 18% GST, totalling ₹5,900 .
• It is highly recommended to prepare thoroughly before taking the exam . A suggested resource is Prokhata’s question bank, which is specifically designed for this exam .
• Prokhata’s question bank offers explanations and a revision summary for the questions, covering the entire IBBI syllabus and including case studies . This platform is presented as unique in its comprehensiveness .
• Failing the exam can lead to delays and additional costs . Using Prokhata’s resources is advised to increase your chances of passing in the first attempt .
• Once you clear the exam, it remains valid for 3 years .
• There is an annual membership fee payable to ICAI RVO of ₹1,000 plus GST, totalling ₹1,180 .
• Furthermore, there are Continuing Professional Education (CPE) requirements to maintain your RV status. You need to complete 16 CPE hours per year or 64 CPE hours over four years .

5. The Value and Opportunities for a Registered Valuer

Despite the fees and ongoing requirements, becoming a Registered Valuer can be highly rewarding . RVs have significant opportunities in various sectors :

• Startup Valuations: With the booming startup ecosystem in India, there is a high demand for valuation services, with fees ranging from ₹25,000 to ₹1 lakh per assignment .
• Mergers and Acquisitions (M&A): RVs play a crucial role in company valuation for M&A deals, with potential fees of ₹1 lakh to ₹10 lakh .
• Regulatory Compliance Valuations: Listed companies and startups require valuations for SEBI compliance, attracting fees of ₹25,000 and above .
• Alternate Investment Funds (AIF) Valuation: Valuing AIF portfolios for fund managers and investors offers good opportunities based on fund size .
• Banking and Financial Institution Valuations: Loan and asset evaluations for banks and NBFCs can fetch fees between ₹30,000 to ₹2 lakh .
• Insolvency and Bankruptcy Valuations: There is a significant and compulsory requirement for registered valuers in insolvency and bankruptcy processes as per the Company Act . Holding this degree provides the power to sign valuation reports in these crucial scenarios .
• Fair Value Measurements and Financial Reporting: Corporates and audit firms require fair value measurements, with fees ranging from ₹50,000 to ₹3 lakh .
• Litigation Support and Dispute Resolution: Expert valuation reports are needed in legal matters, with potential earnings of ₹1 lakh to ₹5 lakh .

It’s important to note that these higher fees are typically earned after gaining expertise and building a strong network .

Considering the potential, the RV course should be viewed as a valuable investment, similar to the CA qualification . It is advisable to complete the course as soon as possible as it may evolve into a more extensive degree program in the future .

The entire process can potentially be completed within a month . It is recommended to start solving Prokhata’s questions during the training to reinforce your understanding .

6. Post-Exam Registration with IBBI and Obtaining the Certificate of Practice

Once you have cleared the NISM exam, you need to register with the Insolvency and Bankruptcy Board of India (IBBI) .

• Before registering with IBBI, you would have already registered on the NISM certification portal to take the exam .
• The final step is obtaining the Certificate of Practice (COP) .

7. Step-by-Step Recap of the Process

To summarise the six steps :

1. Eligibility Verification: Ensure you have 3 years of post-qualification experience as a CA or meet the criteria for other eligible professions .
2. 50-Hour Educational Training: Enrol and complete the mandatory training through the ICAI RVO website .
3. NISM Examination: This involves prerequisites and registration on the NISM portal (certification.nism.ac.in) .
   • You need to choose the “Valuation Examination in the Asset Class Securities and Financial Assets” .
   • Select ICAI Registered Valuers as your RVO and upload the required documents, including your primary membership certificate and training completion certificate .
   • The exam is MCQ-based and includes case studies . You will have access to OpenOffice (similar to Excel) to solve case studies .
   • Register on the NISM portal by submitting details like PAN card, photograph, address proof, educational and employment details .
   • The exam is 2 hours long with 87 multiple-choice questions, requiring a 60% pass rate . Be aware of the negative marking of 0.25 marks per incorrect answer . The pass rate has been relatively low (around 10%) previously .
4. Filing Form A with IBBI: After clearing the NISM exam, you need to file Form A with IBBI through your RVO to register for the Certificate of Practice .
5. Obtaining Certificate of Practice (COP): The COP is essential for signing valuation reports .
6. Continuous Learning: Remember the annual membership fees and the requirement for CPE hours to maintain your registration .

8. Leveraging Prokhata for Exam Success

The video highlights the importance of using resources like Prokhata for effective exam preparation . Prokhata offers :

• Comprehensive course content with a tutorial video .
• Topic-wise quizzes covering 170 topics across various modules .
• Multiple questions with explanations and revision summaries for each topic .
• Efforts to consolidate information on key valuation concepts like beta, income approach, market approach, and cost approach in one place for easier understanding and retention .
• A user-friendly, game-like interface for solving questions efficiently .