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

Assessee developing infrastructure facility of Govt. not contractor for denying 80IA deduction

Whether an assessee developing an infrastructure facility of Government is a contractor and ineligible for claim of deduction under Section…

2 hours ago
  • Income Tax

Jurisdictional PCIT/CIT to condone delay in filing Form No. 10A for Registration u/s 12A

Jurisdictional Principal Commissioner of Income-tax or Commissioner of Income-tax to condone delay in filing Form No. 10A for Registration u/s…

5 hours ago
  • Income Tax

AO not justified in making addition by adopting extrapolation without any material evidence

AO was not justified in making addition by adopting method of extrapolation without bringing any material evidence in support -…

1 day ago
  • bankruptcy

Court can not sit over comparative financial attractiveness of rival offers decided by CoC

Court can not sit over comparative financial attractiveness of rival offers or to substitute its own view for the decision…

2 days ago
  • Income Tax

When quantum appeal restored, penalty can’t be levied for non-payment of demand

When quantum appeal stands restored to the AO, penalty can not be levied u/s 221(1) of the Income Tax Act…

3 days ago
  • Income Tax

Even in case of bogus purchases, entire purchases cannot be disallowed – ITAT

Even if, the assessee is engaged in the bogus purchases, the entire purchases cannot be disallowed - ITAT In a…

4 days ago