MCA Notifies the “Companies (Registered Valuer’s and Valuation) Rules 2017”
The MCA has notified the “Companies (Registered Valuer’s and Valuation) Rules, 2017“, applicable from the date of their publication in the Official Gazette. These Rules mainly provide for Registration of Valuers for conducting the valuation exercise envisaged under the Companies Act, 2013, i.e. provides for registration of different category of valuers with eligibility requirements relating to qualifications and experience.
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, i.e. 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 fulfill 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.
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, namely:-
1. Short title and commencement.─
(1) These rules may be called the Companies (Registered Valuers and Valuation) Rules, 2017.
(2) They shall come into force on the date of their publication in the Official Gazette.
(1) In these rules, unless the context otherwise requires ─
(a) “Act” means the Companies Act, 2013 (18 of 2013);
(b) “authority” means an authority specified by the Central Government under section 458 of the Companies Act, 2013 to perform the functions under these rules;
(c) “asset class” means a distinct group of assets, such as land and building, machinery and equipment, displaying similar characteristics, that can be classified and requires separate set of valuers for valuation;
(d) “certificate of recognition” means the certificate of recognition granted to a registered valuers organisation under sub-rule (5) of rule 13 and the term “recognition” shall be construed accordingly;
(e) “certificate of registration” means the certificate of registration granted to a valuer under sub-rule (6) of rule 6 and the term “registration” shall be construed accordingly;
(f) “partnership entity” means a partnership firm registered under the Indian Partnership Act, 1932 (9 of 1932) or a limited liability partnership registered under the Limited Liability Partnership Act, 2008 (6 of 2009);
(g) “Annexure” means an annexure to these rules;
(h) “registered valuers organisation” means a registered valuers organisation recognised under sub-rule (5) of rule 13;
(i) “valuation standards” means the standards on valuation referred to in rule 18; and
(j) “valuer” means a person registered with the authority in accordance with these rules and the term “registered valuer” shall be construed accordingly.
(2) Words and expressions used but not defined in these rules, and defined in the Act or in the Companies (Specification of Definitions Details) Rules, 2014, shall have the same meanings respectively assigned to them in the Act or in the said rules. (..contd.. please refer above attachment)