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ARTICLE · 13 NOVEMBER 2017

MCA Notifies Provision And Rules Regarding Registered Valuers And Valuation

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This would also lead to valuation being a specialized profession.

IndiaCorporate/Commercial Law
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The Ministry of Corporate Affairs has issued a notification1 dated October 20, 2017 to bring into effect Section 247 of the Companies Act, 2013, which deals with valuation by Registered Valuers. In addition to notifying the commencement of this provision, MCA has also notified2 the Companies (Registered Valuers and Valuation) Rules, 2017 (hereinafter referred to as the 'Rules') simultaneously.3

The valuation of a business can prove to be a key factor for taking strategically important business decisions. A valuer shall be required to conduct valuation required under the Act as per the Rules and may conduct the valuation as per the Rules if required under any other law or by any other regulatory authority.4 These rules inter alia provide that for the valuation to be conducted, a valuer has to be registered with the authority specified by the Central Government.

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