Who is a Registered Valuer?
A Registered Valuer is a professional authorized to carry out valuation of assets, properties, shares, securities, or businesses under the Companies Act, 2013 in India.
They must be registered with the Insolvency and Bankruptcy Board of India (IBBI) and operate according to the Companies (Registered Valuers and Valuation) Rules, 2017.
Why is a Registered Valuer Required?
Under the Companies Act, valuations must be conducted by a qualified and registered expert to ensure transparency, accuracy, and compliance. Valuation is needed during:
⇒ Issue of shares (fresh issue, rights issue, or preferential allotment)
⇒ Merger, demerger, or acquisition
⇒ Purchase or sale of a business unit
⇒ Transfer of shares between shareholders
⇒ Corporate restructuring or insolvency
⇒ Investment, funding, or exit of shareholders
Who Can Become a Registered Valuer?
- Chartered Accountants (CAs)
- Company Secretaries (CSs)
- Cost Accountants
- Engineers
- MBAs in finance
- Can become a registered valuer after completing:
- A 50-hour training course by a Registered Valuer Organization (RVO)
- Clearing the IBBI Valuation Exam
- Registration with IBBI under a specific asset class (e.g., Securities or Financial Assets, Land and Building, or Plant and Machinery)
Responsibilities of a Registered Valuer
- Perform fair and objective valuation
- Use standard valuation methods
- Prepare detailed valuation reports
- Ensure compliance with applicable laws and rules
- Maintain independence and professional ethics
Benefits of Engaging a Registered Valuer
✅ Legally Compliant – Required by law for several transactions under the Companies Act.
✅ Trusted by Authorities – Reports are accepted by courts, regulators, and financial institutions.
✅ Professional Expertise – Brings accuracy and reliability in business decision-making.
✅ Transparency & Fairness – Prevents undervaluation or overvaluation of assets.
When is a Registered Valuer Mandatory?
Some key situations where a registered valuer is compulsory:
Section 62(1)(c): Preferential allotment of shares
Section 192: Sale or purchase of assets involving directors
Section 230–232: Mergers and arrangements
Section 247: General requirement of valuation under the Act