Companies(Registered Valuers and Valuation)Third amendment Rules2 018

The Ministry of Corporate Affairs (MCA) has came up with new amendment on 25^th September, 2018 in the Companies (Registered Valuers and Valuation), 2017 after Companies (Registered Valuers and Valuation), Second Amendment Rules, 2018 namely as Companies (Registered Valuers and Valuation) Third amendment Rules 2018.

The Companies (Registered Valuers and Valuation), Second Amendment Rules, 2018 recently got amended on 13^th June, 2018 and bought up a significant change in the definition of Registered Valuer (as mentioned in Rule 3 of the Companies (Registered Valuers and Valuation), Rules 2017 ) as below-

“In the Companies (Registered Valuers and Valuation) Rules, 2017, in rule 19, in sub-rule 2, after clause (g), the

following clause shall be inserted, namely:-

“(h) Presidents of, the Institute of Chartered Accountants of India, the Institute of Company Secretaries of India, the Institute of Cost Accountants of India as ex-officio members.”

which means that the presidents of CA,CS and CMA can act as Ex-Officio of the advising Committee to advice, make recommendations on formulation and laying down of valuation standards and Policies for compliance by Companies and Registered Valuers.

After the Companies (Registered Valuers and Valuation), Second Amendment Rules, 2018, the Companies (Registered Valuers and Valuation) Third amendment Rules, 2018 came into force on 25^th September, 2018 as per which-

In the companies (Registered valuers and valuation) Rules, 2017 (hereinafter referred to as “the said rules”), in rule 11, for the figures, letters and word ,30^th September, 2018″ occurring at both the places, the figures, letters and word ,31^st January, 2019″ shall be substituted.

In the said rules, in rule 14, in clause (f), for the words ,one year, the words” two years” shall be substituted.

Analysis Companies (Registered Valuers and Valuation) Third amendment Rules 2018.

Sr No

Rule

Rule before Amendment

Rule After Amendment as per

1

Rule 11

Any person who may be rendering valuation services under the Act, on the date of commencement of these rules, may continue to render valuation services without a certificate of registration under these rules upto 30^thSeptember, 2018 (amended form 31^st March 2018 to 30^th September, 2018 by virtue of amendment on 9 th February, 2018), 2018:

Provided that if a company has appointed any valuer before such date and the valuation or any part of it has not been completed before 30^thSeptember, 2018 (amended form 31^st March 2018 to 30^th September, 2018 by virtue of amendment on 9 th February, 2018), 2018:, the valuer shall complete such valuation or such part within three months thereafter.

Explanation.— It is hereby clarified that conduct of valuation by any person under any law other than the Act, or these rules shall not be effected 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.

Any person who may be rendering valuation services under the Act, on the date of commencement of these rules, may continue to render valuation services without a certificate of registration under these rules upto 31^st January 2019:

Provided that if a company has appointed any valuer before such date and the valuation or any part of it has not been completed before 31^st January, 2019, the valuer shall complete such valuation or such part within three months thereafter.

Explanation.— It is hereby clarified that conduct of valuation by any person under any law other than the Act, or these rules shall not be effected 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.

2

Rule 14

(f) be converted or registered as company under section 8 of the Act, with governance structure and bye laws specified in Annexure-III, within a period of one year from the date of commencement of these rules if it is an organisation referred to in proviso to sub-rule (1) of rule 12;

(f) be converted or registered as company under section 8 of the Act, with governance structure and bye laws specified in Annexure-III, within a period of two year from the date of commencement of these rules if it is an organisation referred to in proviso to sub-rule (1) of rule 12;