SALIENT FEATURES OF THE COMPANIES (REGISTERED VALUERS AND VALUATION) RULES, 2017

The Companies (Registered Valuers and Valuation) Rules, 2017, outline the requirements for registration, conduct, and regulations for valuers who undertake valuation assignments for companies. Some of the salient features of these rules are:

1. Registration of valuers: Valuers are required to be registered with the Insolvency and Bankruptcy Board of India (IBBI) to undertake valuation assignments for companies. The registration process involves meeting specific eligibility criteria, passing an examination, and undergoing training.
2. Eligibility criteria: The eligibility criteria for registration as a valuer include possessing the necessary educational and professional qualifications, a minimum of three years of experience in the relevant field, and being of sound mind and not having been declared insolvent.
3. Valuation standards: The Rules provide that valuers must follow prescribed valuation standards while undertaking valuation assignments. These standards specify the methodologies, assumptions, and principles that must be followed for different types of valuation assignments.
4. Code of Conduct: Valuers are required to adhere to a code of conduct that outlines ethical principles and professional conduct standards. The code of conduct specifies that valuers must maintain independence, confidentiality, and integrity while carrying out their duties.
5. Valuation reports: Valuers are required to prepare detailed valuation reports, which must be in compliance with the prescribed standards. The reports must include information about the purpose of the valuation, the methodology used, the assumptions made, and the conclusion arrived at.
6. Disclosure requirements: The Rules specify that valuers must disclose any conflicts of interest that may arise during the valuation process. They are also required to disclose any relationships they may have with the company, its promoters, or its directors.
7. Monitoring and enforcement: The IBBI is responsible for monitoring the activities of registered valuers and taking action against any violations of the Rules. The IBBI has the power to suspend or cancel the registration of a valuer who violates the Rules or the code of conduct.
8. Disciplinary Action: The rules provide for disciplinary action against registered valuers who violate the code of conduct or the valuation standards. The RVO can take action against such valuers, which may include suspension or cancellation of their registration.

Overall, the Companies (Registered Valuers and Valuation) Rules, 2017, aim to promote transparency, professionalism, and integrity in the valuation of companies. The Rules provide a regulatory framework for valuers to operate within, ensuring that they follow the prescribed standards and adhere to ethical principles while carrying out their duties.

 

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