COMPANIES REGISTERED VALUER AMENDMENT RULES,2022
The concept of a “registered valuer” under Indian law was introduced for the first time vide Section 247 of Chapter VXII of the Indian Companies Act for matters requiring valuation under the said act. the Ministry of Corporate Affairs introduced the Companies (Registered Valuers and Valuation) Rules, 2017 (“Rules”). The concept of a registered valuer opens a new area of professional opportunity.
Section 247 of the Companies Act provides that “where a valuation is required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other asset or net worth of a company or its liabilities under the provisions of this Act, it shall be valued by a person having such qualifications and experience and registered as a valuer in such manner and on such terms and conditions as may be prescribed and appointed by the audit committee or in its absence by the Board of Directors of that company”.
Qualifications of registered valuers for different class of assets
For the valuation of land & building, a registered valuer must be a graduate or postgraduate in Civil engineering, architecture, or town planning with a minimum experience of 3 to 5 years
For the valuation of plant & machinery, a registered valuer must be a graduate or postgraduate in Electrical or Mechanic Engineering with a minimum experience of 3 to 5 years
For the valuation of securities or financial assets, a person must be a member of ICAI, ICSI or Institute of Cost Accountants of India or an MBA with specialization in Finance, with minimum experience of 3 years in the discipline after completing graduation
The Companies (Registered Valuers and Valuation) Rules, 2017
Rules under Companies Act, 2013
1. Short title, Commencement and Application
2. Definitions.
3. Eligibility for registered valuers
4. Qualifications and experience
5. Valuation Examination
6. Application for certificate of registration
7. Conditions of Registration
8. Conduct of Valuation
9. Temporary surrender
10. Functions of a Valuer
11. Transitional Arrangement
12. Eligibility for registered valuers organizations
13. Application for recognition
14. Conditions of Recognition
15. Cancellation or suspension of certificate of registration or recognition
16. Complaint against a registered valuer or registered valuers organization
17. Procedure to be followed for cancellation or suspension of registration or recognition certificate
18. Valuation Standards
19. Committee to advise on valuation matters
20. Punishment for contravention
21. Punishment for false statement
AMENDMENT RULES OF COMPANIES REGISTERED VALUER
G S R (E).- In exercise of the powers conferred by section 247 read with sections 458, 459 and 469 of the Companies Act , 2013 (18 of 2013) , the Central Government hereby makes the following rules further to amend the Companies (Registered Valuers and Valuation) Rules , 2017, namely:-
- Short title and commencement. – (1) These rules may be called the Companies (Registered Valuers and Valuation) Amendment Rules, 2022.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Registered Valuers and Valuation) Rules, 2017 (hereafter referred to as the said rules), in rule 3, in sub-rule (2),-
(ii) after clause (e), the following clause shall be inserted, namely:-
“(f) it is not a member of a registered valuers organisation:
Provided that it shall not be a member of more than one such registered valuers organisation at a given point of time:
Provided further that the partnership entity or company, already registered as valuers, on the date of commencement of the Companies (Registered Valuers and Valuation) Amendment Rules, 2022, shall comply within six months of such commencement with the conditions specified under this clause.”.
3. In the said rules, after rule 7, the following rule shall be inserted, namely:-
“7A. Intimation of changes in personal details etc., by registered valuer to authority. – A registered valuer shall intimate the authority for change in the personal details, or any modification in the composition of partners or directors, or any modification in any clause of the partnership agreement or Memorandum of Association, which may affect registration of registered valuer, after paying fee as per the Table -I in Annexure V.”.
4. In the said rules, in rule 8, in the proviso, in clause (a), for the word, “standards;”, the words, “standards; or” shall be substituted.
5. In the said rules, after rule 14, the following rule shall be inserted, namely:-
“14A. Intimation of changes in composition of governing board, etc. by the registered valuers organisations to the authority.- A registered valuers organisation shall intimate the authority for change in composition of its governing board, or its committees or appellate panel, or other details, after payment of fee as per the Table II in Annexure V.”.
6. In the said rules, in Annexure-III, in Part II, in serial number XI, relating to SURRENDER OF MEMBERSHIP AND EXPULSION FROM MEMBERSHIP, in clause 26, in sub-clause (1), in item (b), the following Explanation shall be inserted, namely:-
“Explanation.- For the removal of doubts, it is hereby clarified that a member functioning as a whole time director in the company registered as valuer shall not be treated as taking up employment for the purpose of this provision.”.
7. In the said rules, in Annexure IV, the existing Note shall be numbered as Note 1 thereof, and after the Note 1, as so numbered, the following Note shall be inserted, namely:-
“Note 2: In case of asset classes namely, the ‘plant and machinery’ and ‘land and building’, the corresponding relevant nomenclature for the branches of the engineering and technology of graduate and post graduate courses referred to in the notification number F. No. 27/RIFD/Pay/01/2017-18, dated the 28th April, 2017, issued by the All India Council for Technical Education, shall also be considered.”.
