THE COMPANIES (REGISTERED VALUERS AND VALUATION ) RULES, 2017 1

ca0e7b72def4aa4cb6d724ab5fbb426dd1e8ed48 · 2016 · State unknown

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Parent: THE INSOLVENCY AND BANKRUPTCY CODE, 2016 Last Update 18-8-2021 (db08e302dbdafa64a086f6402e52a1b3b84827d6)

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THE COMPANIES (REGISTERED VALUERS AND VALUATION ) RULES, 2017 1 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:- CHAPTER I PRELIMINARY 1. Short title and commencement.─ (1) These rules may be called the Companies (Registered Valuers and Valuation) Rules, 2017. They shall come into force on the date of their publication in the Official Gazette. Definitions.─ (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 v aluers 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" me

Rule TOC

1 · Short title and commencement.─ (1) These rules may be called the Companies (Registered Valuers and Valuation) Rules, 2017.

1 · Published in the Gazette of India, Extra., Part II, Sec.3, No. 1316 (E), dated 18 th Oct., 2017.

6 · Application for certificate of registration.─ (1) An individual eligible for registration as a registered valuer under rule 3 may make an application to the authority in Form-A of AnnexureII along with a non-refundable application fee of five thousand rupees in favour of the authority.

8 · Conduct of Valuation.─ (1) The registered valuer shall, while conducting a valuation, comply with the valuation standards as notified or modified under rule 18:

10 · Functions of a Valuer.─ A valuer shall conduct valuation required under the Act as per these rules and he may conduct valuation as per these rules if required under any other law or by any other regulatory authority.

11 · Transitional Arrangement.─ Any person who may be rendering valuation services under the Act, on the date of commencement of these rules, may continue to render valuation services without a certificate of registration under these rules upto 2 [30 th September, 2018]:

2 · Subs. by the Companies (Registered Valuers and Valuation) Amendment Rules, 2018, rule 2 (w.e.f. 12-2-2018).

3 · Ibid.

12 · Eligibility for registered valuers organisations.─(1) An organisation that meets requirements under sub-rule (2) may be recognised as a registered valuers organisation for valuation of a specific asset class or asset classes if ─

13 · Application for recognition.─ (1) An eligible organisation which meets the conditions specified in rule 12 may make an application for recognition as a registered valuers organisation for asset class or classes to the authority in Form-D of the Annexure-II along with a nonrefundable application fee of rupees one lakh in favour of the authority.

14 · Conditions of Recognition.─ The recognition granted under rule 13 shall be subject to the conditions that the registered valuers organisation shall-

15 · Cancellation or suspension of certificate of registration or recognition.- The authority may cancel or suspend the registration of a valuer or recognition of a registered valuers organisation for violation of the provisions of the Act, any other law allowing him to perform valuation, these rules or any condition of registration or recognition, as the case may be in the manner specified in rule 17.

16 · . Complaint against a registered valuer or registered valuers organisation . -A complaint may be filed against a registered valuer or registered valuers organisation before the authority in person or by post or courier along with a non-refundable fees of rupees one thousand in favour of the authority and the authority shall examine the complaint and take such necessary action as it deems fit:

17 · Procedure to be followed for cancellation or suspension of registration or recognition certificate.─ (1) Based on the findings of an inspection or investigation, or a complaint received or on material otherwise available on record, if the authorised officer is of the prima facie opinion that sufficient cause exists to cancel or suspend the registration of a valuer or cancel or suspend the recognition of a registered valuers organisation, it shall issue a show-cause notice to the valuer or registered valuers organisation:

18 · Valuation Standards.─ The Central Government shall notify and may modify (from time to time) the valuation standards on the recommendations of the Committee set up under rule 19.

19 · Committee to advise on valuation matters.─ (1) The Central Government may constitute a Committee to be known as "Committee to advise on valuation matters" to make recommendations on formulation and laying down of valuation standards and policies for compliance by companies and registered valuers.

4 · [(h) Presidents of, the Institute of Chartered Accountants of India, the Institute of Company Secretaries of India, the Institute of Cost Accountants of India as ex -officio members.]

4 · Ins. by the Companies (Registered Valuers and Valuation) Second Amendment Rules, 2018, rule 2 (w.e.f. 146 -2018).

1 · A valuer shall, in the conduct of his/its business, follow high standards of integrity and fairness in all his/its dealings with his/its clients and other valuers.

2 · A valuer shall maintain integrity by being honest, straightforward, and forthright in all professional relationships.

4 · A valuer shall refrain from being involved in any action that would bring disrepute to the profession.

1 · Educational Qualifications

2 · Professional Qualifications [excluding valuation specific courses]

1 · Educational Qualifications

2 · Professional Qualifications for each partner/director

2 · . Copies of the articles of association, memorandum of association, trust-deed, bye-laws and code of conduct, as applicable, of the applicant are enclosed.

1 · Governance Structure

2 · REGISTERED VALUERS ORGANISATION TO HAVE BYE -LAWS

3 · AMENDMENT OF BYE -LAWS

4 · Composition of the Governing Board.

1X · GRIEVANCE REDRESSAL MECHANISM