ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has issued draft regulations for registration and providing services of valuations for immovable properties and other goods, plants and machinery.
The commission issued SRO No. 1069(I)/2017 and said no person shall act as a valuer unless such person is registered by the commission under the regulations ‘Valuers Registration and Governance Regulations, 2017.’
A company, meeting the eligibility criteria provided in regulation 4, may apply to the Commission on Form A, along with non-refundable processing fee as prescribed in schedule I, for registration as a Valuer for one or more of the categories mentioned below:
Category – I: to carry out valuation of immovable property, land and buildings including all kinds or agricultural, residential and commercial land and all kinds of residential and commercial structures and buildings, excluding industrial plants and infrastructural construction;
Category – II: to carry out valuation of plant and machinery, including industrial plants and machinery and infrastructural construction such as telecommunication networks, roads and highways, railway tracks, water and sewerage lines, etc.;
Category – III: to carry out valuation of inventories of raw material, unfinished and finished goods, commodities and agricultural produce;
Category – IV: to carry out valuation of securities, intangible assets (e.g. goodwill, intellectual property, technical or other services), financial assets, financial liabilities etc.; and
Category – V: to carry out valuation of Information Systems and Infrastructure Assets including Hardware and Software etc.
Grant of registration.- (1) The Commission shall, after making necessary inquiries and obtaining such further information, as it may consider necessary, grant approval for registration as valuer, subject to the following conditions:
(a) The valuer shall engage following professionals for providing services on assignment basis, having working experience, on a full time basis, for a period of not less than five years and having membership of recognized professional bodies or the prescribed qualification, to conduct the valuation for:
(I) Category I
(a) An Engineer in relevant field such as civil engineer, architect, town planner having relevant experience; or
(b) Graduate in any discipline and having 10 years of experience in valuation
(II) Category II
(c) An Engineer in relevant field such as Civil, Electrical or Mechanical Engineering; or
(d) An Associate engineer having 10 years of experience in valuation
(III) Category III
A graduate in commerce, business, accounting, finance or any other related discipline and having 10 years of experience in valuation.
(IV) Category IV
(a) A Chartered Accountant or a Cost and Management Accountant; or
(b) Chartered Financial Analyst.
(V) Category V
Graduate in IT with Certified Information Systems Auditor (CISA)/ Certified Information Security Manager (CISM) or any other relevant IT certifications.
Provided that the Commission may, from time to time through notification in the official gazette, prescribe such other competence and qualification for registration on any of the above mentioned categories, as it may deem appropriate.
(b) Valuers shall have duly operated office, staffed with qualified experts as prescribed in the regulations, and has put in place necessary infrastructure including but not limited to adequate office space owned or rented out by themselves or their director(s), equipment and human resource with sufficient education, experience and expertise to perform the functions of a valuer.
(c) the chief executive of the valuer shall not hold such office in any other valuer.
(d) the company is not part of a group of companies (associated and subsidiary companies) already holding a registration, under these regulations, for valuer in that category.
(e) the company, promoters or sponsors, chief executive and directors shall furnish separate undertakings to the Commission that they shall comply in letter and spirit with the requirements of these regulations and the directions issued by the Commission.
(f) all persons subject to fit and proper criteria shall submit an affidavit to the Commission affirming under the oath that the person and the companies, firms, sole proprietorship etc. where the person is a chief executive, director (other than nominee director) and owner or partner etc. has no overdue payment of any financial institution of more than five hundred thousand.
(2) The valuer shall submit to the commission evidence of compliance of these regulations and conditions, along with non-refundable registration fee, within 90 days of the approval, extendable for 60 days, failing which the approval shall lapse.
(3) The Commission shall issue certificate of registration as per Form B, and also place his name in the list of registered valuers on its website.
