MULTIPLE-CHOICE QUESTIONS WITH ANSWERS RELATED TO SALIENT FEATURES OF THE COMPANIES (REGISTERED VALUERS AND VALUATION) RULES 2017
What is the primary purpose of the Companies (Registered Valuers and Valuation) Rules, 2017 in India?
A) To regulate the functioning of stock exchanges
B) To standardize the process of valuation of companies
C) To facilitate mergers and acquisitions
D) To regulate the functioning of mutual funds
Answer: B) To standardize the process of valuation of companies
Which authority is responsible for overseeing the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Securities and Exchange Board of India (SEBI)
B) Ministry of Corporate Affairs (MCA)
C) Reserve Bank of India (RBI)
D) Institute of Chartered Accountants of India (ICAI)
Answer: B) Ministry of Corporate Affairs (MCA)
According to the Companies (Registered Valuers and Valuation) Rules, 2017, who can act as a registered valuer?
A) Any individual with a finance degree
B) Only members of the Institute of Chartered Accountants of India (ICAI)
C) Individuals registered with the Insolvency and Bankruptcy Board of India (IBBI)
D) Individuals with a minimum of 5 years of experience in valuation
Answer: C) Individuals registered with the Insolvency and Bankruptcy Board of India (IBBI)
What is the maximum tenure for a registered valuer as per the Companies (Registered Valuers and Valuation) Rules, 2017?
A) 3 years
B) 5 years
C) 7 years
D) 10 years
Answer: B) 5 years
Which of the following is NOT a requirement for becoming a registered valuer under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Passing the valuation examination conducted by the IBBI
B) Possession of professional indemnity insurance
C) Membership with a recognized professional valuation organization
D) Approval from the Securities and Exchange Board of India (SEBI)
Answer: D) Approval from the Securities and Exchange Board of India (SEBI)
Under the Companies (Registered Valuers and Valuation) Rules, 2017, what is the penalty for providing false information or contravening any provision?
A) Fine up to Rs.10,000
B) Fine up to Rs.1 lakh
C) Fine up to Rs.5 lakhs
D) Fine up to Rs.10 lakhs
Answer: C) Fine up to Rs.5 lakhs
Which section of the Companies Act, 2013 empowers the Central Government to make rules for valuations under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Section 92
B) Section 247
C) Section 129
D) Section 179
Answer: B) Section 247
According to the Companies (Registered Valuers and Valuation) Rules, 2017, which type of companies are required to get their securities valued by a registered valuer?
A) Only listed companies
B) Only unlisted public companies
C) Both listed and unlisted companies
D) Only private companies
Answer: C) Both listed and unlisted companies
What is the minimum net worth requirement for a company intending to carry out the business of valuation under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Rs.5 lakh
B) Rs.10 lakh
C) Rs.25 lakh
D) Rs.50 lakh
Answer: C) Rs.25 lakh
Which form is used for making an application to the IBBI for registration as a valuer under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Form RV-1
B) Form RV-2
C) Form RV-3
D) Form RV-4
Answer: A) Form RV-1
Who appoints a registered valuer for valuation under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Registrar of Companies (ROC)
B) Board of Directors of the company
C) Ministry of Corporate Affairs (MCA)
D) Securities and Exchange Board of India (SEBI)
Answer: B) Board of Directors of the company
In case of any change in the particulars furnished by a registered valuer, within how many days should the valuer intimate such change to the IBBI?
A) 7 days
B) 14 days
C) 21 days
D) 30 days
Answer: D) 30 days
Which of the following documents is NOT required to be maintained by a registered valuer as per the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Records of the valuation
B) Records of the clients served
C) Records of professional indemnity insurance
D) Records of the number of valuations conducted
Answer: C) Records of professional indemnity insurance
Under the Companies (Registered Valuers and Valuation) Rules, 2017, who is responsible for prescribing the standards and qualifications for the registered valuers?
A) Reserve Bank of India (RBI)
B) Institute of Chartered Accountants of India (ICAI)
C) Insolvency and Bankruptcy Board of India (IBBI)
D) Ministry of Finance
Answer: C) Insolvency and Bankruptcy Board of India (IBBI)
What is the maximum number of valuations that a registered valuer can undertake in a financial year under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) 50
B) 75
C) 100
D) 150
Answer: C) 100
According to the Companies (Registered Valuers and Valuation) Rules, 2017, who can issue a valuation report?
A) Only registered valuers
B) Any member of the Institute of Chartered Accountants of India (ICAI)
C) Any certified financial analyst
D) Only individuals with a minimum of 10 years of experience in valuation
Answer: A) Only registered valuers
Which section of the Companies Act, 2013 empowers the Central Government to establish the Insolvency and Bankruptcy Board of India (IBBI)?
A) Section 209
B) Section 240
C) Section 248
D) Section 256
Answer: C) Section 248
What is the tenure of the Chairperson and members of the Registered Valuers Organizations (RVOs) under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) 3 years
B) 4 years
C) 5 years
D) 6 years
Answer: C) 5 years
Which of the following is NOT a function of the Registered Valuers Organizations (RVOs) under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Maintaining a register of registered valuers
B) Conducting valuation examinations
C) Regulating the stock market
D) Monitoring the conduct of registered valuers
Answer: C) Regulating the stock market
Under the Companies (Registered Valuers and Valuation) Rules, 2017, who has the power to suspend or cancel the registration of a registered valuer?
A) Ministry of Corporate Affairs (MCA)
B) Securities and Exchange Board of India (SEBI)
C) Insolvency and Bankruptcy Board of India (IBBI)
D) Reserve Bank of India (RBI)
Answer: C) Insolvency and Bankruptcy Board of India (IBBI)
What is the time limit for disposing of an application for registration of a valuer by the IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) 30 days
B) 45 days
C) 60 days
D) 90 days
Answer: B) 45 days
Who prescribes the code of conduct for registered valuers under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Ministry of Corporate Affairs (MCA)
B) Insolvency and Bankruptcy Board of India (IBBI)
C) Institute of Chartered Accountants of India (ICAI)
D) Securities and Exchange Board of India (SEBI)
Answer: B) Insolvency and Bankruptcy Board of India (IBBI)
What is the maximum number of valuations that a valuer can undertake at any given time under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) 2
B) 3
C) 4
D) 5
Answer: C) 4
Under the Companies (Registered Valuers and Valuation) Rules, 2017, what is the minimum experience required for a valuer in the relevant area of valuation?
A) 1 year
B) 2 years
C) 3 years
D) 4 years
Answer: C) 3 years
Which of the following is NOT a criterion for disqualifying a person from being a registered valuer under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Conviction for an offence involving moral turpitude
B) Insolvency
C) Being a director of a company
D) Removal or suspension as a valuer by the IBBI
Answer: C) Being a director of a company
How often should a registered valuer undergo training as per the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Once every year
B) Once every two years
C) Once every three years
D) Once every five years
Answer: B) Once every two years
Who can prescribe the qualifications and experience required for individuals to be registered as valuers under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Ministry of Corporate Affairs (MCA)
B) Reserve Bank of India (RBI)
C) Insolvency and Bankruptcy Board of India (IBBI)
D) Securities and Exchange Board of India (SEBI)
Answer: C) Insolvency and Bankruptcy Board of India (IBBI)
Under the Companies (Registered Valuers and Valuation) Rules, 2017, what is the maximum amount of penalty for failure to maintain records by a registered valuer?
A) Rs.1 lakh
B) Rs.5 lakhs
C) Rs.10 lakhs
D) Rs.15 lakhs
Answer: C) Rs.10 lakhs
Which form is used for renewal of registration as a valuer under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Form RV-1A
B) Form RV-2A
C) Form RV-3A
D) Form RV-4A
Answer: B) Form RV-2A
What is the qualification required for individuals to become valuers of securities or assets other than land and building under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Chartered Accountant (CA)
B) Company Secretary (CS)
C) Cost Accountant (ICWA)
D) All of the above
Answer: D) All of the above
Which of the following types of valuations are covered under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Only tangible assets
B) Only intangible assets
C) Both tangible and intangible assets
D) Only financial assets
Answer: C) Both tangible and intangible assets
What is the time limit within which a registered valuer must submit a valuation report under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) 30 days
B) 45 days
C) 60 days
D) 90 days
Answer: B) 45 days
According to the Companies (Registered Valuers and Valuation) Rules, 2017, what is the minimum age requirement for individuals applying to be registered as valuers?
A) 21 years
B) 25 years
C) 30 years
D) 35 years
Answer: A) 21 years
Which section of the Companies Act, 2013 empowers the Central Government to prescribe rules for the valuation of shares, property, and assets under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Section 92
B) Section 188
C) Section 247
D) Section 215
Answer: C) Section 247
In case a valuer’s registration is suspended or cancelled under the Companies (Registered Valuers and Valuation) Rules, 2017, for how long can the valuer not apply for fresh registration?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C) 3 years
Under the Companies (Registered Valuers and Valuation) Rules, 2017, who is responsible for maintaining a database of valuations?
A) Institute of Chartered Accountants of India (ICAI)
B) Securities and Exchange Board of India (SEBI)
C) Registered Valuers Organizations (RVOs)
D) Ministry of Corporate Affairs (MCA)
Answer: C) Registered Valuers Organizations (RVOs)
According to the Companies (Registered Valuers and Valuation) Rules, 2017, who has the power to levy fees for various matters including examination, registration, and renewal?
A) Ministry of Corporate Affairs (MCA)
B) Insolvency and Bankruptcy Board of India (IBBI)
C) Reserve Bank of India (RBI)
D) Securities and Exchange Board of India (SEBI)
Answer: B) Insolvency and Bankruptcy Board of India (IBBI)
What is the minimum educational qualification required for individuals to be eligible for registration as valuers under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Bachelor’s degree
B) Master’s degree
C) Diploma in Valuation
D) Professional qualification recognized by the IBBI
Answer: D) Professional qualification recognized by the IBBI
Which of the following is NOT a responsibility of a registered valuer under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Maintaining confidentiality of client information
B) Maintaining professional indemnity insurance
C) Providing investment advice to clients
D) Conducting valuations as per prescribed standards
Answer: C) Providing investment advice to clients
Under the Companies (Registered Valuers and Valuation) Rules, 2017, who is responsible for specifying the manner of maintaining records and documents by registered valuers?
A) Ministry of Corporate Affairs (MCA)
B) Securities and Exchange Board of India (SEBI)
C) Registered Valuers Organizations (RVOs)
D) Insolvency and Bankruptcy Board of India (IBBI)
Answer: D) Insolvency and Bankruptcy Board of India (IBBI)
What is the validity period of the certificate of registration issued to a valuer under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C) 3 years
According to the Companies (Registered Valuers and Valuation) Rules, 2017, who can prescribe the manner and form for maintenance of books of accounts by registered valuers?
A) Ministry of Corporate Affairs (MCA)
B) Institute of Chartered Accountants of India (ICAI)
C) Insolvency and Bankruptcy Board of India (IBBI)
D) Securities and Exchange Board of India (SEBI)
Answer: C) Insolvency and Bankruptcy Board of India (IBBI)
What is the minimum percentage of marks required to pass the valuation examination conducted by the IBBI under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) 50%
B) 60%
C) 70%
D) 75%
Answer: B) 60%
Which section of the Companies Act, 2013 specifies the duties of directors regarding valuation of property, stocks, shares, debentures, etc.?
A) Section 129
B) Section 131
C) Section 164
D) Section 247
Answer: B) Section 131
Under the Companies (Registered Valuers and Valuation) Rules, 2017, what is the minimum number of years of experience required for individuals to be eligible for registration as valuers?
A) 2 years
B) 3 years
C) 5 years
D) 7 years
Answer: C) 5 years
According to the Companies (Registered Valuers and Valuation) Rules, 2017, who can prescribe the qualifications and experience required for individuals to be registered as valuers?
A) Ministry of Corporate Affairs (MCA)
B) Reserve Bank of India (RBI)
C) Insolvency and Bankruptcy Board of India (IBBI)
D) Securities and Exchange Board of India (SEBI)
Answer: C) Insolvency and Bankruptcy Board of India (IBBI)
Under the Companies (Registered Valuers and Valuation) Rules, 2017, which form is used for filing an application for renewal of registration as a valuer?
A) Form RV-1A
B) Form RV-2A
C) Form RV-3A
D) Form RV-4A
Answer: B) Form RV-2A
What is the minimum annual income required for a registered valuer to maintain professional indemnity insurance under the Companies (Registered Valuers and Valuation) Rules, 2017?
A) Rs.1 lakh
B) Rs.5 lakhs
C) Rs.10 lakhs
D) Rs.20 lakhs
Answer: C) Rs.10 lakhs
According to the Companies (Registered Valuers and Valuation) Rules, 2017, who appoints the members of the Registered Valuers Organizations (RVOs)?
A) Insolvency and Bankruptcy Board of India (IBBI)
B) Ministry of Corporate Affairs (MCA)
C) Reserve Bank of India (RBI)
D) Securities and Exchange Board of India (SEBI)
Answer: A) Insolvency and Bankruptcy Board of India (IBBI)
Under the Companies (Registered Valuers and Valuation) Rules, 2017, what is the maximum penalty for a valuer who fails to submit information or documents to the IBBI?
A) Rs.1 lakh
B) Rs.5 lakhs
C) Rs.10 lakhs
D) Rs.15 lakhs
Answer: D) Rs.15 lakhs
