Companies Act

Section 247 relating to Valuation by Registered Valuers Commencement Notification.

Section 247 relating to Valuation by Registered Valuers Commencement Notification. The Companies (Registered Valuers and Valuation) Rules 2017 download

Section 247 of the Companies Act, 2013 provides that if a valuation is required in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets or net worth of a company or its liabilities under the provision of the Act, it shall be done by registered valuers. on such terms and conditions as may be prescribed and appointed by the audit committee or in its absence by the Board of Directors of that company.

Now, the MCA has issued a Notification for commencement of Section 247 wef 18th October, 2017.

Press Information Bureau 
Government of India
Ministry of Corporate Affairs

20-October-2017 13:20 IST

Ministry of Corporate Affairs issues Notification for commencement of Section 247 of the Companies Act, 2013 relating to Valuation by Registered Valuers .

The Companies (Registered Valuers and Valuation) Rules, 2017, finalized after public consultation and detailed deliberations with stakeholders, have also been issued simultaneously. 

The Ministry of Corporate Affairs has issued Notification for commencement of Section 247 of the Companies Act, 2013 (Valuation by Registered Valuers) with effect from 18th October, 2017. The Companies (Registered Valuers and Valuation) Rules, 2017 (Rules), which have been finalized after public consultation and detailed deliberations with stakeholders have also been issued simultaneously.

The Rules, inter alia, provide for Registration of Valuers for conduct of valuation under the Companies Act, 2013. The valuers, who may be individuals or partnership entities or companies, would be required to be registered with the authority specified by the Central Government. The Rules provide for registration of different category of valuers and lay down the requirements on their eligibility, qualifications and experience. The Registered Valuers are also required to be members of the Registered Valuers Organisations (RVOs), recognised by the authority under the Rules.  The eligibility norms for RVOs to be recognised have also been provided in the Rules which, inter alia, include for an internal governance structure which should provide for enforcement of a code of conduct on the registered valuers, training and conduct of educational courses for the valuation of specific asset classes for which the RVO concerned is recognised.

The Rules also lay down the mechanism to prescribe valuation standards and syllabus for conduct of valuation education courses as well as specify the requirements with regard to the contents of the valuation report.

The Rules provide for a transition period upto 31st March, 2018 for registration of valuers with the authority keeping in view the period which would be required by the valuers organisations and the valuers to fulfil the requirements under the law. During this transition period any person who may be rendering valuation services under the Companies Act, 2013 may continue to render such services without getting registered under the Rules.

The role and powers of the authority with regard to registration/recognition and ancillary matters have been provided in the Rules. It is proposed to specify Insolvency and Bankruptcy Board of India (IBBI) as the authority under the Rules. The relevant notification under section 458 of the Act in this regard is being issued separately.

The commencement notification and the Rules referred to are also placed on the Ministry’s website at www.mca.gov.in  

*****************

DSM 

Share

Recent Posts

  • Income Tax

Notice u/s 148 set-aside as assessee’s e-mail was inactive and notices went un-noticed

Notice u/s 148 set-aside and remitted back since the assessee’s e-mail was inactive leading to all notices go un-noticed In…

9 hours ago
  • Income Tax

AO after dropping an issue for lack of evidence may re-open it on gathering information

AO after dropping an issue in assessment u/s 143(3) for lack of evidence is competent to re-open such issue upon…

10 hours ago
  • Income Tax

Jewellery converted into solid gold not unexplained or in excess of permissible limit

Merely because jewellery is converted into solid gold / gold biscuits, it cannot be presumed to be unexplained or in…

1 day ago
  • Income Tax

A luxury litigant assessee cannot be given a second innings to make good its case – ITAT

Assessee cannot be given a second innings to make good its case - ITAT declines to remand the case second…

1 day ago
  • Income Tax

20% profit rate appropriate on cash deposit in bank representing business receipts – ITAT

When cash deposits represent business receipts, income to be estimated by applying a reasonable profit rate. In a recent judgment,…

1 day ago
  • bankruptcy

Resolution plan to include a statement of beneficial-ownership of all natural persons

Every resolution plan to include a statement of beneficial-ownership of all natural persons who ultimately owns or controls the resolution…

2 days ago