OVERVIEW
Registered Valuer is a new concept introduced by Section 247 of the Companies Act, 2013 to regulate the valuation of the various assets and liabilities related to a Company and to standardized the procedure of Valuation in line with International Valuation Standards.
Before the introduction of the concept of Registered Valuer, the valuation of assets and liabilities was arbitrary, not the regulated one. There were a lot of doubts and window dressing in the arbitrary Valuation, a regulated valuation not only solve the above issues but also assure the authenticity of the valuation.
SECTION AND RULES
Section 247 of the Companies Act, 2013 and the Companies (Registered Valuers and Valuation) Rules, 2017 (the Rules), both came into effect from 18 October 2017.
It was clarified that conduct of valuation by any person under any law other than the Act, or these rules shall not be affected by virtue of coming into effect of these rules unless the relevant other laws or other regulatory bodies require valuation by such person in accordance with these rules in which case these rules shall apply for such valuation also from the date specified under the laws or by the regulatory bodies.
MCA by way of notification on 23 October 2017, to administer and perform functions under the said rules, has specified the Insolvency and Bankruptcy Board of India (IBBI) has the authority to regulate and administer the registered valuers.
