MCA delegates the power and functions vested u/s 247 ((Valuation by registered valuers) of the Companies Act, 2013 to the Insolvency and Bankruptcy Board of India (‘IBBI’). However, MCA states that it can revoke such delegation of powers in the course of action if necessary for the public interest.
Section 247 of the Companies Act, 2013 refers that only registered valuer can do the valuation of any property, stocks, shares, debentures, securities or goodwill or any other assets or net worth of a company or its liabilities under the Companies Act.
The provision further defines the registered valuer as any person whose qualifications and experience is as per the terms and conditions prescribed and appointed by the audit committee or in its absence by the Board of Directors of that company. The Section further refers that appointed valuer should
(a) make an impartial, true and fair valuation of any assets which may be required to be valued;
(b) exercise due diligence while performing the functions as valuer;
(c) make the valuation in accordance with such rules as may be prescribed; and
(d) not undertake valuation of any assets in which he has a direct or indirect interest or become so interested at any time during or after the valuation of assets.
Further, the provision further outlines the penalty on valuer for violating the above provisions.