MINISTRY OF CORPORATE AFFAIRSNOTIFICATIONNew Delhi, the 18th October, 2017 G.S.R 1316(E).─ In exercise of the powers conferred by section 247 read with sections 458, 459 and 469 of theCompanies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules, namely:-CHAPTER IPRELIMINARY1. Short title and commencement.─ (1) These rules may be called the Companies (Registered Valuers andValuation) Rules, 2017.(2) They shall come into force on the date of their publication in the Official Gazette.2. Definitions.─ (1) In these rules, unless the context otherwise requires ─(a) “Act” means the Companies Act, 2013 (18 of 2013);(b) “authority” means an authority specified by the Central Government under section 458 of theCompanies Act, 2013 to perform the functions under these rules;(c) “asset class” means a distinct group of assets, such as land and building, machinery andequipment, displaying similar characteristics, that can be classified and requires separate set ofvaluers for valuation;(d) “certificate of recognition” means the certificate of recognition granted to a registered valuersorganisation under sub-rule (5) of rule 13 and the term “recognition” shall be construedaccordingly;(e) “certificate of registration” means the certificate of registration granted to a valuer under subrule (6) of rule 6 and the term “registration” shall be construed accordingly;II (i) 39(f) “partnership entity” means a partnership firm registered under the Indian Partnership Act,1932 (9 of 1932) or a limited liability partnership registered under the Limited LiabilityPartnership Act, 2008 (6 of 2009);(g) “Annexure” means an annexure to these rules;(h) “registered valuers organisation” means a registered valuers organisation recognised undersub-rule (5) of rule 13;(i) “valuation standards” means the standards on valuation referred to in rule 18; and(j) “valuer” means a person registered with the authority in accordance with these rules and theterm “registered valuer” shall be construed accordingly.(2) Words and expressions used but not defined in these rules, and defined in the Act or in the Companies(Specification of Definitions Details) Rules, 2014, shall have the same meanings respectively assigned to them inthe Act or in the said rules.CHAPTER IIELIGIBILITY, QUALIFICATIONS AND REGISTRATION OF VALUERS3. Eligibility for registered valuers.─ (1) A person shall be eligible to be a registered valuer if he-(a) is a valuer member of a registered valuers organisation;Explanation.─ For the purposes of this clause, “a valuer member” is a member of a registeredvaluers organisation who possesses the requisite educational qualifications and experience forbeing registered as a valuer;(b) is recommended by the registered valuers organisation of which he is a valuer member forregistration as a valuer;(c) has passed the valuation examination under rule 5 within three years preceding the date ofmaking an application for registration under rule 6;(d) possesses the qualifications and experience as specified in rule 4;(e) is not a minor;(f) has not been declared to be of unsound mind;(g) is not an undischarged bankrupt, or has not applied to be adjudicated as a bankrupt;(h) is a person resident in India;Explanation.─ For the purposes of these rules ‘person resident in India’ shall have the samemeaning as defined in clause (v) of section 2 of the Foreign Exchange Management Act, 1999(42 of 1999) as far as it is applicable to an individual;(i) has not been convicted by any competent court for an offence punishable with imprisonmentfor a term exceeding six months or for an offence involving moral turpitude, and a period offive years has not elapsed from the date of expiry of the sentence:40 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]Provided that if a person has been convicted of any offence and sentenced in respect thereof toimprisonment for a period of seven years or more, he shall not be eligible to be registered;(j) has not been levied a penalty under section 271J of Income-tax Act, 1961 (43 of 1961) andtime limit for filing appeal before Commissioner of Income-tax (Appeals) or Income-taxAppellate Tribunal, as the case may be has expired, or such penalty has been confirmed byIncome-tax Appellate Tribunal, and five years have not elapsed after levy of such penalty; and(k) is a fit and proper person:Explanation.─ For determining whether an individual is a fit and proper person under theserules, the authority may take account of any relevant consideration, including but not limitedto the following criteria-(i) integrity, reputation and character,(ii) absence of convictions and restraint orders, and(iii) competence and financial solvency.(2) No partnership entity or company shall be eligible to be a registered valuer if-(a) it has been set up for objects other than for rendering professional or financial services, includingvaluation services and that in the case of a company, it is not a subsidiary, joint venture or associate ofanother company or body corporate;(b) it is undergoing an insolvency resolution or is an undischarged bankrupt;(c) all the partners or directors, as the case may be, are not ineligible under clauses (c), (d), (e), (g), (h),(i), (j) and (k) of sub-rule (1);(d) three or all the partners or directors, whichever is lower, of the partnership entity or company, as thecase may be, are not registered valuers; or(e) none of its partners or directors, as the case may be, is a registered valuer for the asset class, for thevaluation of which it seeks to be a registered valuer.4. Qualifications and experience.─ An individual shall have the following qualifications and experience to be eligiblefor registration under rule 3, namely:-(a) post-graduate degree or post-graduate diploma, in the specified discipline, from a University orInstitute established, recognised or incorporated by law in India and at least three years of experience inthe specified discipline thereafter; or(b) a Bachelor’s degree or equivalent, in the specified discipline, from a University or Instituteestablished, recognised or incorporated by law in India and at least five years of experience in thespecified discipline thereafter; or(c) membership of a professional institute established by an Act of Parliament enacted for the purpose of regulation of aprofession with at least three years’ experience after such membership and having qualification mentioned at clause (a)or (b).II (i) 41Explanation-I.─ For the purposes of this clause the ‘specified discipline’ shall mean the specific discipline which isrelevant for valuation of an asset class for which the registration as a