Company Secretary is recognised as a Registered Valuer under Companies (Registered Valuers and Valuation) Rules, 2017 as per the notification of Ministry of Corporate Affairs vide no. G.S.R. (E) dated 18th October, 2017 notified the Companies (Registered Valuers and Valuation) Rules, 2017. According to clause (j) of sub-rule (1) of Rule 2 of the said rules, ‘valuer’ means a person registered with the Authority in accordance with these Rules and the term ‘Registered Valuer’ shall be construed accordingly.

The notification of these Rules shall, while bringing about a clarity regarding various aspect of valuation and Registered Valuers, have a major impact on the industry, professionals, stakeholders and the government as well. Introduction of Valuation Standards will ensure that the valuation reports disclose a true, fair and complete view and result in greater objectivity in valuation procedures. The increased transparency and fairness in the valuation system shall also boost stakeholders’ confidence alongside improving government revenues by way of plugging of loopholes in valuation.

Commenting on the development, CS(Dr) Shyam Agrawal, President ICSI said “In India, the concept of valuation has always been debated as to whether it is a science or an art. Due to the involvement of element of subjectivity, substantial number of litigations in M&A are about valuation. Furthermore, there is an absence of standards for valuation of business in India, specifically for unlisted and private companies. Though there is some consensus among professional valuers about generally accepted approaches, methods and procedures; however, there was a need for education, training, regulation and standardization of prevalent practices in valuation. The notification of these Rules will lead to the setting-up of Indian Valuation Standards that will improve transparency and governance.”

He further added “Introduction of Valuation Standards will ensure that the valuation reports disclose a true, fair and complete view and result in greater objectivity in valuation procedures. The increased transparency and fairness in the valuation system shall also boost stakeholders’ confidence alongside improving government revenues by way of plugging of loopholes in valuation. The requirement of Registered Valuers will definitely enhance professional opportunities for both the Company Secretaries and other professionals as well.”