Companies LawLegal Updates

MCA allows subsidiary, joint venture or associate of another company to undertake valuation services, amends Companies (Registered Valuers and Valuation) Rules

MCA Updates

MCA issues Companies (Registered Valuers and Valuation) Fourth Amendment Rules, 2018 (Amended Rules). The amended Rules inserts Rule 1 (3) which clarifies the respective Rule would be applicable for the valuation of any property, stocks, shares, debentures, securities or goodwill or any other assets or net worth of a companv or its liabilities under Companies Act, 2013. Thereafter, Explanation has been added which clarifies that the conduct of valuation under any other law/ Act/ Rules by any person will not be affected by the virtue of the amended Rules. 

Thereafter, under Rule 3 (2) (a) has been amended wherein subsidiary, joint venture or associate of another company or body corporate can also undertake valuation services. 

There has been amendment under Rule 4 (Qualifications and experience), wherein Explanation III has been inserted wherein the term “equivalent” has been defined as professional and technical qualifications which are recognised by the Ministry of Human Resources and Development as equivalent to professional and technical degree. 

As per the amended Rule 10, a valuer to conduct valuation as per the respective Rules only if it is required under Companies Act.

In addition, Annexure IV (Eligibility Qualification and Experience for Registration as Valuer) has been also substituted under Registered Valuers and Valuation) Fourth Amendment Rules, 2018

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