The Central Government of India has notified the Companies (Registered Valuers and Valuation) Amendment Rules, 2022 on November 21, 2022, to amend the Companies Registered Valuers and
Valuation) Rules, 2017.
Amendments and their Impact:
The 2022 rules have rectified clause (c) of Rule 3(2) of the 2017 Rules by clarifying that a partnership firm shall not be registered as a registered valuer unless all the partners or directors are eligible to be registered as registered valuers under Rule 3(1).
A proviso has been added that states that such partner or director shall not be a member of more than one registered valuers organisation at one point in time.
Rule 7A has been inserted, which mandates that a registered valuer must inform the requisite authority as to any change in the personal details or modification in the composition of directors or partners or any change in the composition of its governing board, appellate panel or committee or any such change in the partnership deed or Memorandum of Association which may affect the registration of registered valuer. Such intimation must be made as per Table 1 & 2 in AnnexureV, inserted by the 2022 Rules.
Annexure V has been inserted to provide for fee structure to be followed while making intimations as to changes in personal details and changes in the composition of governing board of registered valuers organisations by the registered valuer or registered valuers organization.
An explanation has been inserted into Clause 26(1)(b) of Annexure III, Part II which deals with the temporary surrender of membership from a registered valuers organisation when a such member takes up employment. The explanation is inserted to clarify that a member functioning as a whole-time director of a company registered as a valuer shall not be considered “employment” and hence not a ground for the temporary suspension.
A new note has been inserted under Annexure IV of the 2017 Rules, which states that in the asset classes of “plant and machinery” and “land and building”, the corresponding nomenclature for engineering and technology graduate and post-graduate courses as provided for in the notification issued by the All-India Council for Technical Education, dated 28 April 2017, shall also be considered while determining the eligibility qualification to be registered as a valuer.
