In this post we will discuss the minimum educational qualification one must have to register with the Insolvency and Bankruptcy Board of India (IBBI) as a registered valuer. In addition to passing the valuation examination for the respective asset classes, the law prescribes certain minimum educational requirements.
The focus of this article is on the asset class – securities or financial assets.
In general, for all asset classes, these are the eligible educational requirements;
(a) post-graduate degree or post-graduate diploma, in the specified discipline, from a University or Institute established, recognized or incorporated by law in India and at least three years of experience in the specified discipline thereafter;
(b) a Bachelor’s degree or equivalent, in the specified discipline, from a University or Institute established, recognized or incorporated by law in India and at least five years of experience in the specified discipline thereafter;
(c) membership of a professional institute established by an Act of Parliament enacted for the purpose of regulation of a profession, with at least three years’ experience after such membership.
‘Specified Discipline’ means the specific discipline which is relevant for valuation of an asset class for which the registration as a valuer is being sought.
‘Equivalent’ shall mean professional and technical qualifications which are recognized by the Ministry of Human Resources and Development as equivalent to a professional and technical degree.
For the securities or financial asset class here is the specific educational requirement;
- Member of Institute of Chartered Accountants of India,
- Member of Institute of Company Secretaries of India,
- Member of the Institute of Cost Accountants of India,
- Master of Business Administration (MBA, specialization in finance).
- Post Graduate Diploma in Business Management (specialization in finance).
- Post Graduate in Finance
For the above SFA category, candidates must have least 3 years' experience which is after attaining the above qualification and not before.
In the case of Master of Business Administration (MBA) and post-graduation degrees, if ‘finance’ specialization is not mentioned on the degree certificate, a confirmation from the college or Institute or University from which the course was pursued must be obtained. Marksheet alone will not be sufficient to prove that you have specialized in finance.
The list of universities which are accepted by the IBBI as recognized for the valuer program is provided here https://www.ugc.ac.in/oldpdf/Consolidated%20list%20of%20All%20Universities.pdf.
The institute should be recognized by the government and must have issued the degree certificate with finance explicitly mentioned. In a case where an institute is unrecognized but subsequent to the candidate’s graduation it received recognition, the candidate will not be eligible to apply to IBBI. That is, there is no retrospective recognition of degrees.
Is a foreign Master of Business Administration accepted? Yes, a foreign university issued MBA is accepted by the IBBI. The only condition is that the foreign MBA must be recognized by the Ministry of Human Resource Development (MHRD).
An applicant with a foreign degree must enclose Equivalence Certificate (https://evaluation.aiu.ac.in/Student/Login) issued by Association of Indian Universities with respect to the foreign degree based on which registration is being sought.
For members of the Institute of Chartered Accountants of India, graduation is not required. That is students who pursued Chartered Acountancy course after their 12th class (+2 or Pre-university course in some states) without pursuing graduation are eligible for IBBI registered valuer program.
This gives a good idea about eligibility for embarking on the valuation profession. For further clarification, one must approach IBBI directly. It is best to clarify your eligibility before registering for the 50-hour mandatory program. In a few instances, candidates who have clear the valuer examination, have had their registration held in abeyance by IBBI due to lack of clarity in their eligibility requirement. You don’t want to be in such a situation. Specially if you are entering the valuation profession with an MBA, post graduate or diploma, perusing the eligibility criteria will be very helpful.
For further information one must reach out to IBBI here https://ibbi.gov.in/contact-us.