The Ministry of Corporate Affairs (MCA) has amended the valuation rules, establishing a minimum paid-up capital requirement of ₹25 lakh for Registered Valuer Organizations to enhance financial accountability and governance standards.
Amendments to Valuation Regulations by MCA
The Ministry of Corporate Affairs (MCA) has introduced significant amendments to the Companies (Registered Valuers and Valuation) Rules, 2026. Notably, these amendments require Registered Valuer Organizations (RVOs) to maintain a minimum paid-up capital of ₹25 lakh. This change aims to strengthen financial and governance standards within the valuation sector.
The amendments specify that the increased minimum capital requirement serves as a benchmark for ensuring that RVOs possess the requisite financial stability to conduct valuations. Enhanced governance frameworks are deemed necessary for maintaining the integrity and reliability of valuations, thereby protecting stakeholder interests.
Practitioners should be aware of these developments, as compliance with the new capital requirements will be crucial for RVOs looking to remain operational and competitive in the market. This may also lead to a review of governance policies and business models among existing RVOs to align with the new statutory mandates.
Citations
- Companies (Registered Valuers and Valuation) Amendment Rules, 2026
