RULE-03 ELIGIBILITY FOR REGISTERED VALUERS AS PER RULES – ALL YOU NEED TO KNOW

RULE-03

ELIGIBILITY FOR REGISTERED VALUERS AS PER RULES

THE COMPANIES (REGISTERED VALUERS AND VALUATION ) RULES, 2017

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

1. A person shall be eligible to be a registered valuer if he-

a) is a valuer member of a registered valuers organisation;

Explanation ─ For the purposes of this clause, “a valuer member” is a member registered valuers organisation who possesses the requisite educational qualifications and experience for being registered as a valuer;

b) is recommended by the registered valuers organisation of which he is a valuer member for registration as a valuer;
c) has passed the valuation examination under rule 5 within three years preceding the date of making an application for registration under rule 6;
d) possesses the qualifications and experience as specified in rule 4;
e) is not a minor;
f) has not been declared to be of unsound mind;
g) is not an undischarged bankrupt, or has not applied to be adjudicated as a bankrupt;
h) is a person resident in India;

Explanation.─ For the purposes of these rules ‘person resident in India’ shall have the same meaning as defined in clause (v) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999) as far as it is applicable to an individual;

i) has not been convicted by any competent court for an offence punishable with imprisonment for a term exceeding six months or for an offence involving moral
turpitude, and a period of five years has not elapsed from the date of expiry of the sentence:

Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be registered;

j) has not been levied a penalty under section 271J of Income-tax Act, 1961 (43 of 1961) and time limit for filing appeal before Commissioner of Income-tax (Appeals) or
Income-tax Appellate Tribunal, as the case may be has expired, or such penalty has been confirmed by Income-tax Appellate Tribunal, and five years have not elapsed after levy of such penalty; and

k) is a fit and proper person:

Explanation.─ For determining whether an individual is a fit and proper person under these rules, the authority may take account of any relevant consideration, including but not limited to the following criteria-

(i) integrity, reputation and character,
(ii) absence of convictions and restraint orders, and
(iii) competence and financial solvency.
2. No partnership entity or company shall be eligible to be a registered valuer if-
(a) it has been set up for objects other than for rendering professional or financial services, including valuation services and that in the case of a company, it is 4[***] a subsidiary, joint venture or associate of another company or body corporate;
(b) it is undergoing an insolvency resolution or is an undischarged bankrupt;
(c) all the partners or directors, as the case may be, are not ineligible under clauses (c),(d), (e), 5(f), (g), (h), (i), (j) and (k) of sub-rule (1);
(d) three or all the partners or directors, whichever is lower, of the partnership entity or company, as the case may be, are not registered valuers; or
(e) none of its partners or directors, as the case may be, is a registered valuer for the asset class, for the valuation of which it seeks to be a registered valuer.

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