CODE OF CONDUCT OF ALL INDIA VALUERS ASSOCIATION FORREGISTERED VALUERS
(Clause (g) of rule 7 and clause (d) of sub-rule (2) of Rule12)
INTEGRITY AND FAIRNESS
1. A valuer shall, in the conduct of his/its business, follow high standards of integrity andfairness in all his/its dealings with his/its clients and other valuers.
2. A valuer shall maintain integrity by being honest, straight forward, and forthright in allprofessional relationships.
3. A valuer shall endeavor to ensure that lie/it provides true and adequate information andshall not misrepresent any facts or situations.
4. A valuer shall refrain from being involved in any action that would bring disrepute to theprofession.
5. A valuer shall keep public interest foremost while delivering his services.
PROFESSIONAL COMPETENCE AND DUE CARE
1. A valuer should render at all times high standards of service, exercise, due diligence,ensure proper care and exercise independent professional judgment.
2. A valuer should carry out professional services in accordance with the relevant technicaland professional standards that may be specified from time to time
3. A valuer should continuously maintain professional knowledge and skill to providecompetent professional service based on up-to-date developments in practice, prevailingregulations/guidelines and techniques.
4. In the preparation of a valuation report, the valuer should not disclaim liability for his/itsexpertise or deny his/its duty of care, except to the extent that the assumptions arestatements of fact provided by the company and not generated by the valuer.
5. A valuer should have a duty to carry out with care and skill, the instructions of the clientinsofar as they are compatible with the requirements of integrity, objectivity andindependence.
6. A valuer shall clearly state to his client services that he would be competent to provide and the services for which he would be relying on the other valuers or professionals or forwhich the client can have a separate arrangement with other valuers.
INDEPENDENCE AND DISCLOSURE OF INTEREST
1. A valuer should act with objectivity in his/its professional dealings by ensuring that his/itsdecisions are made without the presence of any bias, conflict of interest, coercion, or undue influence of any party, whether directly connected to the valuation assignment or not.
2. A valuer should not take up an assignment under the Act/Rules if he/it or any of his/itsrelatives or associates is not independent in relation to the company and assets beingvalued.
3. A valuer should maintain complete independence in his/its professional relationships andshall conduct the valuation independent of external influences.
4. A valuer should wherever necessarily disclose to the clients, possible sources of conflicts ofduties and interests, while providing unbiased services.
5. A valuer should not deal in securities of any subject company after any time when he/it first becomes aware of the possibility of his/its association with the valuation, and inaccordance with the SEBI (Prohibition of Insider Trading) Regulations, 2015.
6. A valuer should not indulge in “mandate snatching” or “convenience valuations” in order
to cater to the company’s needs or client needs.
7. As an independent valuer, the valuer should not charge success fee.
8. In any fairness opinion or independent expert opinion submitted by a valuer, if there hasbeen a prior engagement in an unconnected transaction, the valuer should declare the past association with the company during the last 5 years.
CONFIDENTIALITY
A valuer should not use or divulge to other clients or any other party any confidentialinformation about the subject company, which has come to his/its knowledge without proper and specific authority or unless there is a legal or professional right or duty to disclose.
INFORMATION MANAGEMENT
1. A valuer should ensure that he/ it maintains written contemporaneous records for anydecision taken, the reasons for taking the decision, and the information and evidence insupport of such decision. This should be maintained so as to sufficiently enable areasonable person to take a view on the appropriateness of his/its decisions and actions.
2. A valuer should appear, co-operate and be available for inspections and investigationscarried out by the Registration Authority, any person authorised by the RegistrationAuthority, the Valuation Professional Organisation with which he/it is registered or anyother statutory regulatory body.
3. A valuer should provide all information and records as may be required by theRegistration Authority, the Tribunal, Appellate Tribunal, the Valuation ProfessionalOrganisation with which he/it is registered, or any other statutory regulatory body.
4. A valuer while respecting the confidentiality of information acquired during the course ofperforming professional services, should maintain proper working papers for a period ofthree years, for production before a regulatory authority or for a peer review. In the event of a pending case before the Tribunal or Appellate Tribunal, the record should bemaintained till the disposal of the case.
GIFTS AND HOSPITALITY
1. A valuer, or his/its relative should not accept gifts or hospitality which undermines oraffects his independence as a valuer. Explanation – For the purposes of this code the term‘Relative’ shall have the same meaning as defined in clause (77) of section 2 of theCompanies Act, 2013.
2. A valuer should not offer gifts or hospitality or a financial or any other advantage to apublic servant or any other person, intending to obtain or retain work for himself/ itself, orto obtain or retain an advantage in the conduct of profession for himself/ itself.
REMUNERATION AND COSTS
1. A valuer should provide services for remuneration which is charged in a transparentmanner, is a reasonable reflection of the work necessarily and properly undertaken, and isnot inconsistent with the applicable rules.
2. A valuer should not accept any fees or charges other than those which are disclosed inwritten contract with the person to whom he would be rendering service.
OCCUPATION, EMPLOYABILITY AND RESTRICTIONS
1. A valuer should refrain from accepting too many assignments, if he/it is unlikely to be ableto devote adequate time to each of his/ its assignments.
2. A valuer should not conduct business which in the opinion of the Registration Authority isinconsistent with the reputation of the profession.
ADDITIONAL CODE OF CONDUCT FOR WHICH MEMBERS ARE ACCOUNTABLE
PRIMARY DUTY AND OBLIGATION
1. It is valuer’s obligation to develop and describe the appropriate type of value or estimatedcost.
2. It is valuer’s obligation to develop appropriate and credible conclusion and opinions with ahigh degree of accuracy depending on the purpose of the valuation assignment.
3. A valuer shall abstain from deliberately giving false and misleading opinion and conclusion.
4. A valuer shall attain high degree of competency in his work through education, training,study, practice, and experience.
5. A valuer shall, in the conduct of his/its business, follow high standards of integrity andfairness in all his/its dealings with his/its clients and other valuers.
6. A valuer shall maintain integrity by being honest, straight forward, and forthright in allprofessional relationships.
7. A valuer shall endeavor to ensure that lie/it provides true and adequate information andshall not misrepresent any facts or situations.
8. A valuer shall refrain from being involved in any action that would bring disrepute to theprofession.
9. A valuer shall keep public interest foremost while delivering his services.
VALUATION REPORT
1. A valuation report should convey every analysis, conclusion and opinion reached in amanner which is clear and not misleading.
2. The valuation investigations, methods, approaches, bases, premises and reporting should be in compliance with the valuation standards in force.
OBJECTIVITY
1. The principle of objectivity imposes an obligation on the valuer not to compromise hisprofessional or business judgment because of bias, conflict of interest or undue influence ofothers.
2. Some threats to objectivity are incapable of avoidance or mitigation and where this is thecase the valuer should decline the assignment. However, some potential threats toobjectivity may be either eliminated or effectively mitigated by safeguards. Thesesafeguards can include appropriate disclosure of the threat to the relevant parties andobtaining their consent to proceed with the valuation assignment.
PROFESSIONAL BEHAVIOUR
1. A valuer shall accept a responsibility to act in the public interest. A professional valuer’sduty is not limited to meet the needs of a particular client or employer. There is also a needto consider if professional decisions have a wider impact on unidentified third parties. While the client’s needs are normally paramount, a professional valuer shall avoidknowingly accepting any instruction that appears to be prejudicial to the interests of thewider public and which could discredit their own reputation and that of the professiongenerally.
2. Valuer shall ensure that the service provided is in accordance with all legal, technical andprofessional standards that are applicable to either the subject of the valuation, the purposeor the valuation or both.
3. A valuer should be honest and truthful and should not
a) make exaggerated claims for the services he is able to offer, the qualifications hepossesses, or experience he have gained; or
b) make disparaging references or unsubstantiated comparisons to the work of others.
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