New Delhi, October 20, 2017

Individuals, partnership entities as well as companies can act as valuers under the Companies Act after getting registered with an authority specified by the government, says a notification.

The Corporate Affairs Ministry has proposed to specify the Insolvency and Bankruptcy Board of India (IBBI) as the authority with respect to registration, recognition and ancillary matters related to valuers.

The Companies (Registered Valuers and Valuation) Rules, 2017 have been notified by the ministry. The rules provide for registration of valuers under the Companies Act, 2013.

With the notification of the rules, Section 247 pertaining to valuation by registered valuers came into effect from October 18.

Those entities which are already carrying out valuation activities have time till March 31, 2018, to get registered with the specified authority.

Transition period

“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,” an official release said.

The mechanism to prescribe valuation standards as well as specify the requirements with regard to the contents of the valuation report have been laid out in the rules.

The relevant notification to specify IBBI as the authority with regard to valuers under Section 458 would be issued separately, it added.

A registered valuer would carry out valuation in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets or net worth of a company or its liabilities, as per chapter XVII of the Companies Act.

The Insolvency and Bankruptcy Board of India to be the authority with respect to registration, recognition and ancillary matters related to valuers.

[The Hindu Business Line]