Corporate Affairs Ministry issues notification for commencement of Companies Act, 2013 rule related to Valuation by Registered Valuers
The Companies (Registered Valuers and Valuation) Rules, 2017 (Rules), which have been finalized after public consultation and detailed deliberations with stakeholders, have also been issued simultaneously, the Ministry said in the release.
The Rules, inter alia, provide for Registration of Valuers for conduct of valuation under the Companies Act, 2013.
The valuers, who may be individuals or partnership entities or companies, will be required to be registered with the authority specified by the Central government.
The Rules provide for registration of different category of valuers and lay down the requirements on their eligibility, qualifications and experience.
The Registered Valuers are also required to be members of the Registered Valuers Organisations (RVOs), recognised by the authority under the Rules.
The eligibility norms for RVOs to be recognised have also been provided in the Rules which, inter alia, include for an internal governance structure which should provide for enforcement of a code of conduct on the registered valuers, training and conduct of educational courses for the valuation of specific asset classes for which the RVO concerned is recognised.
The Rules also lay down the mechanism to prescribe valuation standards and syllabus for conduct of valuation education courses as well as specify the requirements with regard to the contents of the valuation report, the release said.
The Rules provide for a transition period upto March 31, 2018 for registration of valuers with the authority keeping in view the period which will be required by the valuers organisations and the valuers to fulfil the requirements under the law.
During this transition period any person who may be rendering valuation services under the Companies Act, 2013 may continue to render such services without getting registered under the Rules.
The role and powers of the authority with regard to registration/recognition and ancillary matters have been provided in the Rules, the release said.
The release also mentioned that it is proposed to specify Insolvency and Bankruptcy Board of India (IBBI) as the authority under the Rules.
The relevant notification under section 458 of the Act in this regard is being issued separately, the release said.
More details available on: www.mca.gov.in
Image: NCLTblog
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.