TaxTMI 
TaxTMI 
Companies (Registered Valuers and Valuation) Rules, 2017
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....nd requires separate set of valuers for valuation; (d) "certificate of recognition" means the certificate of recognition granted to a registered valuers organisation under sub-rule (5) of rule 13 and the term "recognition" shall be construed accordingly; (e) "certificate of registration" means the certificate of registration granted to a valuer under sub-rule (6) of rule 6 and the term "registration" shall be construed accordingly; (f) "partnership entity" means a partnership firm registered under the Indian Partnership Act, 1932 (9 of 1932) or a limited liability partnership registered under the Limited Liability Partnership Act, 2008 (6 of 2009); (g) "Annexure" means an annexure to these rules; (h) "registered valuers organisation" means a registered valuers organisation recognised under sub-rule (5) of rule 13; (i) "valuation standards" means the standards on valuation referred to in rule 18; and (j) "valuer" means a person registered with the authority in accordance with these rules and the term "registered valuer" shall be construed accordingly. (2) Words and expressions used but not defined in these rules, and defined in the Act or in the Compani....
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....ty 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 if4 (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 not 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), (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. 4. Qualifications and experience.─ An individu....
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....y in this regard. (3) The syllabus, format and frequency of the valuation examination, including qualifying marks, shall be published on the website of the authority at least three months before the examination. (4) An individual who passes the valuation examination, shall receive acknowledgement of passing the examination. (5) An individual may appear for the valuation examination any number of times. 6. Application for certificate of registration.─ (1) An individual eligible for registration as a registered valuer under rule 3 may make an application to the authority in Form-A of Annexure-II along with a non-refundable application fee of five thousand rupees in favour of the authority. (2) A partnership entity or company eligible for registration as a registered valuer under rule 3 may make an application to the authority in Form-B of Annexure-II along with a non-refundable application fee of ten thousand rupees in favour of the authority . (3) The authority shall examine the application, and may grant twenty one days to the applicant to remove the deficiencies, if any, in the application. (4) The authority may require the applicant to submit additional....
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....s other than for which he/it has been registered by the authority; (d) take prior permission of the authority for shifting his/ its membership from one registered valuers organisation to another; (e) take adequate steps for redressal of grievances; (f) maintain records of each assignment undertaken by him for at least three years from the completion of such assignment; (g) comply with the Code of Conduct (as per Annexure-I of these rules) of the registered valuers organisation of which he is a member; (h) in case a partnership entity or company is the registered valuer, allow only the partner or director who is a registered valuer for the asset class(es) that is being valued to sign and act on behalf of it; (i) in case a partnership entity or company is the registered valuer, it shall disclose to the company concerned, the extent of capital employed or contributed in the partnership entity or the company by the partner or director, as the case may be, who would sign and act in respect of relevant valuation assignment for the company; (j) in case a partnership entity is the registered valuer, be liable jointly and severally along with the partner who signs and a....
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....he valuation report. 9. Temporary surrender.─ (1) A registered valuer may temporarily surrender his registration certificate in accordance with the bye-laws or regulations, as the case may be, of the registered valuers organisation and on such surrender, the valuer shall inform the authority for taking such information on record. (2) A registered valuers organisation shall inform the authority if any valuer member has temporarily surrendered his/its membership or revived his/ its membership after temporary surrender, not later than seven days from approval of the application for temporary surrender or revival, as the case may be. (3) Every registered valuers organisation shall place, on its website, in a searchable format, the names and other details of its valuers members who have surrendered or revived their memberships. 10. Functions of a Valuer.─ A valuer shall conduct valuation required under the Act as per these rules and he may conduct valuation as per these rules if required under any other law or by any other regulatory authority. 11. Transitional Arrangement.─ Any person who may be rendering valuation services under the Act, on the date of....
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....grants membership or certificate of practice to individuals, who possess the qualifications and experience as specified in rule 4, in respect of valuation of asset class for which it is recognised as a registered valuers organisation ; (c) conducts training for the individual members before a certificate of practice is issued to them; (d) lays down and enforces a code of conduct for valuers who are its members, which includes all the provisions specified in Annexure-I; (e) provides for continuing education of individuals who are its members; (f) monitors and reviews the functioning, including quality of service, of valuers who are its members; and (g) has a mechanism to address grievances and conduct disciplinary proceedings against valuers who are its members. (3) A registered valuers organisation, being an entity under proviso to sub-rule (1), shall convert into or register itself as a company under section 8 of the Companies Act, 2013 (18 of 2013), and include in its bye laws the requirements specified in Annexure- III, within one year from the date of commencement of these rules. 13. Application for recognition.─ (1) An eligible organisation which mee....
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....which shall be publicly available; (c) admits only individuals who possess the educational qualifications and experience requirements, in accordance with rule 4 and as specified in its recognition certificate, as members; (d) make such reports to the authority as may be required by it; (e) comply with any directions, including with regard to course to be conducted by valuation organisation under clause (a) of sub-rule (2) of rule 12, issued by the authority; (f) be converted or registered as company under section 8 of the Act, with governance structure and bye laws specified in Annexure-III, within a period of one year from the date of commencement of these rules if it is an organisation referred to in proviso to sub-rule (1) of rule 12; (g) shall have the governance structure and incorporate in its bye laws the requirements specified in Annexure-III within one year of commencement of these rules if it is an organisation referred to in clause (i) of sub-rule (1) of rule 12 and existing on the date of commencement of these rules; (h) display on its website, the status and specified details of every registered valuer being its valuer members including action under r....
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....r this rule or refer the matter to the Central Government for appropriate directions. (2) The show-cause notice shall be in writing and shall state- (a) the provisions of the Act and rules under which it has been issued; (b) the details of the alleged facts; (c) the details of the evidence in support of the alleged facts; (d) the provisions of the Act or rules or certificate of registration or recognition allegedly violated, or the manner in which the public interest has allegedly been affected; (e) the actions or directions that the authority proposes to take or issue if the allegations are established; (f) the manner in which the person is required to respond to the show-cause notice; (g) consequences of failure to respond to the show-cause notice within the given time; and (h) procedure to be followed for disposal of the show-cause notice. (3) The show-cause notice shall be served in the following manner by- (a) sending it to the valuer or registered valuers organisation at its registered address by registered post with acknowledgment due; or (b) an appropriate electronic means to the email address provided by the valuer or registered value....
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....luations by registered valuers; (f) upto four members who are representatives of registered valuers organisations, nominated by Central Government. (g) upto two members to represent industry and other stakeholder nominated by the Central Government in consultation with the authority; (3) The Chairperson and Members of the Committee shall have a tenure of three years and they shall not have more than two tenures. CHAPTER VI MISCELLANEOUS 20. Punishment for contravention.- Without prejudice to any other liabilities where a person contravenes any of the provision of these rules he shall be punishable in accordance with sub-section (3) of section 469 of the Act. 21. Punishment for false statement.- If in any report, certificate or other document required by, or for, the purposes of any of the provisions of the Act or the rules made thereunder or these rules, any person makes a statement,- (a) which is false in any material particulars, knowing it to be false; or (b) which omits any material fact, knowing it to be material, he shall be liable under section 448 of the Act. ANNEXURE-I MODEL CODE OF CONDUCT FOR REGISTERED VALUERS (See clause (g) of ru....
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....up an assignment if he/it or any of his/its relatives or associates is not independent in terms of association to the company. 14. A valuer shall maintain complete independence in his/its professional relationships and shall conduct the valuation independent of external influences. 15. A valuer shall wherever necessary disclose to the clients, possible sources of conflicts of duties and interests, while providing unbiased services. 16. A valuer shall not deal in securities of any subject company after any time when he/it first becomes aware of the possibility of his/its association with the valuation, and in accordance with the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 or till the time the valuation report becomes public, whichever is earlier. 17. A valuer shall not indulge in "mandate snatching" or offering "convenience valuations" in order to cater to a company or client's needs. 18. As an independent valuer, the valuer shall not charge success fee. 19. In any fairness opinion or independent expert opinion submitted by a valuer, if there has been a prior engagement in an unconnected transaction, the valuer shall de....
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....ces for remuneration which is charged in a transparent manner, is a reasonable reflection of the work necessarily and properly undertaken, and is not inconsistent with the applicable rules. 28. A valuer shall not accept any fees or charges other than those which are disclosed in a written contract with the person to whom he would be rendering service. Occupation, employability and restrictions. 29. A valuer shall refrain from accepting too many assignments, if he/it is unlikely to be able to devote adequate time to each of his/ its assignments. 30. A valuer shall not conduct business which in the opinion of the authority or the registered valuer organisation discredits the profession. ANNEXURE-II FORM-A (See sub-rule (1) of rule 6) Application for registration as a valuer by an individual To The Authority [Insert address] From [Name and address] Subject: Application for registration as a valuer Sir/Madam, I, having been enrolled as a member with the (please write the name of the Registered valuers organisation), hereby apply for registration as a valuer under section 247 of the Companies Act, 2013 read with sub-rule (1) of r....
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.... REGISTERED VALUERS ORGANISATION 1. Please give details of the registered valuers organisation of which you are a member. 2. Please state your membership number. E. ADDITIONAL INFORMATION 1. Have you ever been convicted for an offence? Yes or No. If yes, please give details. 2. Are any criminal proceedings pending against you? (Yes or No) If yes, please give details. 3. Have you ever been declared as an undischarged bankrupt, or applied to be adjudged as Bankrupt? (Yes or No) If yes, please give details. 4. Please provide any additional information that may be relevant for your application. F. ATTACHMENTS 1. Copy of proof of residence. 2. Copies of documents in support of educational qualifications, professional qualifications and Registered Valuation Examination qualifications. 3. Copies of documents demonstrating practice or work experience for the relevant period. 4. Copies of certificate of employment by the relevant employer(s), specifying the period of such employment. 5. Income Tax Returns for the last three years. 6. Copy of proof of membership with a registered valuers organisation. 7. Passport-size photo. 8. Evidenc....
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....NTITY/COMPANY 1. Name: 2. Registration Number/ LLP Number/CIN Number: 3. PAN No.: 4. Address for Correspondence or registered office: 5. Permanent Address: 6. E-Mail Address 7. Telephone No.: 8. Others: B. PERSONAL DETAILS OF EACH PARTNER/DIRECTOR Title (Mr/Mrs/Ms): 1. Name: 2. Father's Name: 3. Mother's Name: 4. Date of Birth: 5. PAN No.: 6. AADHAAR No.: 7. Passport No.: 8. Address for Correspondence: 9. Permanent Address: 10. E-Mail Address 11. Mobile No.: 12. Others: C. EDUCATIONAL, PROFESSIONAL AND VALUATION EXAMINATION QUALIFICATIONS OF PARTNERS/ DIRECTORS 1. Educational Qualifications [Please provide educational qualifications from Bachelor's degree onwards for each partner/director] Educational Qualification Year of Passing Marks (per cent.) Grade/ Class University/College Remarks, if any 2. Professional Qualifications for each partner/director Professional Qualification Institute/ Professional Body/ registered valuers organisation Membership N....
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....luers and Valuation) Rules, 2017. 3. This application and the information furnished by me along with this application is true and complete. If found false or misleading at any stage, the registration of the applicant shall be summarily cancelled. 4. I hereby undertake that the partnership entity/company and its partners/directors shall comply with the requirements of the Companies Act, 2013, the rules made thereunder, the directions given by the authority, and the bye-laws, directions and guidelines issued or the resolutions passed in accordance with the bye-laws by the registered valuers organisation with which I am enrolled. 5. The applicable fee has been paid. Name and Signature of applicant's representative Place: Date: ______________________________________________ VERIFICATION BY THE REGISTERED VALUERS ORGANISATION We have verified the above details submitted by ... who is our member with membership no. ... and confirm these to be true and correct. We recommend registration of ... as a valuer. (Name and Signature) Authorised Representative of the Registered Valuers Organisation Seal of the Registered Valuers Organisation Place: Date: ....
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....t to convert into a company registered under section 8 of the Companies Act, 2013 within the required period, if applicable. Yours faithfully, Authorised Signatory (Name) (Designation) Date : Place : APPENDIX TO FORM-D PART I GENERAL 1. Name of the applicant. 2. Address of registered office and principal place of business of the applicant. 3. Corporate Identification Number (CIN)/ PAN/ Other Identification Number. 4. Name, designation and contact details of the person authorised to make this application and correspond with the authority in this respect. PART II STRUCTURE AND GOVERNANCE 1. Please provide brief details of the applicant's- (i) form of establishment (ii) ownership structure (iii) governance structure PART III MEMBERSHIP AND EXAMINATION 1. Please provide brief details of the (i) number of members who practice valuation and are already registered with the applicant (ii) specific discipline (in terms of rule 4): (iii) other criteria/ qualifications for and manner of registration with the applicant Note: In case of organisations referred to in clause (ii) of sub-rule (1) of rule 12, in lieu of in....
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....on 8 of the Companies Act, 2013 with share capital, and - (a) its sole object is to carry on the functions of a registered valuers organisation under the Companies Act, 2013; (b) it is not under the control of person(s) resident outside India, (c) not more than forty-nine per cent. of its share capital is held, directly or indirectly, by persons resident outside India; and (d) it is not a subsidiary of a body corporate through more than one layer: Explanation: "layer" in relation to a body corporate means its subsidiary; (e) itself, its promoters, its directors and persons holding more than ten percent. of its share capital are fit and proper persons. 2. REGISTERED VALUERS ORGANISATION TO HAVE BYE-LAWS (1) The registered valuers organisation shall submit to the authority its bye-laws along with the application for its registration as a registered valuers organisation. (2) The bye-laws shall provide for all matters specified in the model bye-laws in Part II. (3) The bye-laws shall at all times be consistent with the model bye-laws. (4) The registered valuers organisation shall publish its bye-laws, the composition of all committees formed, and all po....
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.... of 2013) with its registered office situated at ______ [provide full address]. 3. These bye-laws may not be amended, except in accordance with this Annexure. II. DEFINITIONS 4. (1) In these bye-laws, unless the context otherwise requires - (a) "certificate of membership" means the certificate of membership of the Organisation granted under bye-law 10; (b) "Act" means the Companies Act, 2013 (18 of 2013); (c) "Governing Board" means the Board of Directors or Board of the Organisation as defined under clause (10) of section 2 of Companies Act, 2013 (18 of 2013); (d) "relative" shall have the same meaning as assigned to it in clause (77) of section 2 of the Companies Act, 2013 (18 of 2013); (2) Unless the context otherwise requires, words and expressions used and not defined in these bye-laws shall have the meanings assigned to them in the Companies Act, 2013 (18 of 2013). III. OBJECTIVES 5. (1) The Organisation shall carry on the functions of the registered valuers organisation under the Companies (Registered Valuers and Valuation) Rules, 2017, and functions incidental thereto. (2) The Organisation shall not carry on any function other than those spe....
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....additional requirements shall not discriminate on the grounds of religion, race, caste, gender, place of birth or professional affiliation. Process of Enrolment as Member. 10. (1) An individual may apply for enrolment as a member by submitting an application in such form, in such manner and with such fees as may be specified by the Organisation. (2) The Organisation shall examine the application in accordance with the applicable provisions of the rules, regulations and guidelines thereunder. (3) On examination of the application, the Organisation shall give an opportunity to the applicant to remove the deficiencies, if any, in the application. (4) The Organisation may require an applicant to submit additional documents, information or clarification that it deems fit, within reasonable time. (5) The Organisation may reject an application if the applicant does not satisfy the criteria for enrolment or does not remove the deficiencies or submit additional documents or information to its satisfaction, for reasons recorded in writing. (6) The rejection of the application shall be communicated to the applicant stating the reasons for such rejection, within thirty day....
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.... Annexure-I. VIII. MONITORING OF MEMBERS 15. The Organisation shall have a Monitoring Policy to monitor the professional activities and conduct of members for their adherence to the provisions of the Act, rules, regulations and guidelines issued thereunder, these bye-laws, the Code of Conduct and directions given by the Governing Board. 16. A member shall submit information about ongoing and concluded engagements as a registered valuer, in the manner and format specified by the Organisation, at least twice a year stating inter alia, the date of assignment, date of completion and reference number of valuation assignment and valuation report. 17. The Monitoring Committee shall review the information and records submitted by the members in accordance with the Monitoring Policy. 18. The Monitoring Policy shall provide for the following - (a) the frequency of monitoring; (b) the manner and format of submission or collection of information and records of the members, including by way of inspection; (c) the obligations of members to comply with the Monitoring Policy; (d) the use, analysis and storage of information and records; (e) evaluation of performance o....
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....m. X. DISCIPLINARY PROCEEDINGS 23. The Organisation may initiate disciplinary proceedings by issuing a show-cause notice against members- (a) based on a reference made by the Grievances Redressal Committee; (b) based on monitoring of members; (c) following the directions given by the authority or any court of law; or (d) suo moto, based on any information received by it. 24. (1) The Organisation shall have a Disciplinary Policy, which shall provide for the following - (a) the manner in which the Disciplinary Committee may ascertain facts; (b) the issue of show-cause notice based on the facts; (c) disposal of show-cause notice by a reasoned order, following principles of natural justice; (d) timelines for different stages of disposal of show cause notice; and (e) rights and obligations of the parties to the proceedings. (2) The orders that may be passed by the Disciplinary Committee shall include- (a) expulsion of the member; (b) suspension of the member for a certain period of time; (c) admonishment of the member; (d) imposition of monetary penalty; (e) reference of the matter to the authority, which may include, in appropriate ....
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....of the Organisation shall be accepted if - (a) there is a grievance or disciplinary proceeding pending against the member before the Organisation or the authority, and he has not given an undertaking to cooperate in such proceeding; or (b) the member has been appointed as a registered valuer for a process under the Companies Act, 2013, and the appointment of another registered valuer may be detrimental to such process. (3) A member may make an application to revive his temporarily surrendered membership when the conditions for temporary surrender as provided in sub-clause (1) cease to be applicable, and upon acceptance of the application for revival, the name of the member shall be re-inserted in the register of the Organisation, and the same shall be intimated to the authority. Surrender of Membership 27. (1) A member who wishes to surrender his membership of the Organisation may do so by submitting an application for surrender of his membership. (2) Upon acceptance of such surrender of his membership, and completion of thirty days from the date of such acceptance, the name of the member shall be struck from the registers of the Organisation, and the same shall b....
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....d under rule 5 Any other graduate level qualification in accordance with rule 4 as may be specified by the Authority for a registered valuers organisation in its conditions of recognition. Any other post graduate level qualification in accordance with rule 4 as may be specified by the authority for a registered valuers organisation in its conditions of recognition. At least five years and three years of experience in case of graduate level degree and post graduate level degree respectively. Courses as per syllabus specified under rule 5 Plant and Machinery (A) Graduate in Mechanical or Electrical Engineering of a recognised University ---------- Five years of experience in the discipline after completing Graduation Courses as per syllabus specified under rule 5 (B) Graduate in Mechanical or Electrical Engineering of a recognised University Post Graduate in Mechanical or Electrical Engineering of a recognised University Three years of experience in the discipline after completing Post Graduation Courses as per syllabus specified under rule 5 (C) Graduate in valuation of machinery and plant from a recognised univ....