Only Registered Valuer can issue valuation certificate
The Companies Act, 2013 has introduced the concept of Registered
Valuer vide Section 247 of the Act which makes it mandatory that where the
valuation is required for any stocks, shares, debentures, property, securities
and/or goodwill or any other assets or the net worth of a company and/or its
liabilities by and under the provisions of the Act, the valuation shall be done
by a registered valuer.
Provisions which
require valuation
A brief look at the Act would show that there are a few
provisions which mandate valuation through a registered valuer. Some of
them are briefly referred here-under:
· Section
62(1)(c): Further issue of share capital
· Section
192(2): Restriction on non-cash transaction involving directors
· Section
230(2): Scheme for corporate debt restructuring
· Rule
8 of Companies (Share capital and debentures) Rules, 2014: Issue
of sweat equity: the price shall be determined by a registered valuer.
Valuer under other Acts
Even SEBI regulations and IBC requires valuation by a registered
valuer.
Designated Authority for RV
The Central Government has designated the IBBI- Insolvency and
Bankruptcy Board of India to be the authority under the Rules. The IBBI
website shows that around Eleven Registered Valuers Organisations have been
recognized by it as on 23.04.2019
Who can apply for the Valuation Examination
What is the process to
be followed to become a Valuer member?
- · An individual has to first enroll as a valuer member with Registered Valuers Organisation and complete 50 hours Educational Course conducted by the RVO.
- · On completion of the Course and receiving a certificate of participation, the valuer member has to clear examination conducted by IBBI.
- · After clearing examination, valuer member to enroll with RVO and to make an application to the Authority in Form A of the Annexure II of the Companies (Registered Valuers and Valuation) Rules, 2017.
Syllabus
Valuation Standards
As per Rule 8 of Companies (Registered Valuers and Valuation) Rules, 2017, the registered valuer shall, while conducting a valuation, comply with the valuation standards as notified or modified under rule 18: 2 Provided that until the valuation standards are notified or modified by the Central Government, a valuer shall make valuations as per-
(a) internationally accepted valuation standards;
(b) valuation standards adopted by any registered valuers organisation.
Appointment
The registered valuer has to be appointed by an audit committee
and in its absence the Board of directors.