Dec 31, 2022

Amendment in Companies (Registered Valuers and Valuation) Rules

The Ministry of Corporate Affairs (‘MCA’), by way of its Notification dated November 21, 2022 has amended the Companies (Registered Valuers and Valuation) Rules, 2017. Below is a summary of certain key changes:

i.     Partnership entities and companies are required to be members of at least one registered valuers’ organization for them to be eligible as a registered valuer. Partnership entities and companies, already registered as valuers, have six months to comply with this requirement;

ii.   Registered valuers are required to intimate the Insolvency & Bankruptcy Board of India (‘IBBI’) regarding changes in their personal details, modification in composition of their partners or directors or any modification in any clause of partnership agreement or memorandum of association which may affect their registration as a registered valuer, along with the prescribed fees in this regard;

iii.   Registered valuer organizations are required to intimate the IBBI regarding changes in its composition, governing board, committees or appellate panel or other details, along with the prescribed fees in this regard;

iv.   The amendment clarifies that the requirement of a temporary surrender of registered valuers’ organization membership in the event of taking employment will not be applicable to members serving as full-time directors in a company registered as a valuer; and

v.     The amendment further clarifies that valuers could follow either internationally accepted valuation standards or valuation standards adopted by any registered valuers’ organization.




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