The
Ministry of Corporate Affairs has issued Notification for commencement of Section
247 of the Companies Act, 2013 [Valuation by Registered Valuers] with effect
from 18th October, 2017. 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
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, would 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
Rules provide for a transition period upto 31st March, 2018 for
registration of valuers with the authority keeping in view the period which
would 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. 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
commencement notification and the Rules referred to are also placed on the
Ministry’s website at www.mca.gov.in
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DSM