The MCA has amended the valuation rules for Registered Valuer Organisations, mandating a minimum paid-up capital of ₹25 lakh, thereby enhancing financial and governance standards.
MCA Introduces Key Amendments to Valuation Rules
The Ministry of Corporate Affairs (MCA) has introduced amendments to the Companies (Registered Valuers and Valuation) Rules, 2026. The notable change requires Registered Valuer Organisations (RVOs) to maintain a minimum paid-up capital of ₹25 lakh.
This amendment aims to strengthen the financial soundness and operational governance of RVOs, which play a crucial role in the valuation processes critical for corporate transactions. By raising the minimum capital requirements, the MCA intends to foster greater accountability and enhance the quality of valuation services offered by RVOs.
Practitioners should be aware of these new standards, as they will have significant implications for the valuation landscape and the compliance obligations of RVOs. The amendments underscore the importance of ensuring that valuers are financially robust, aligning with the evolving regulatory environment for corporate governance.
Citations
- Companies (Registered Valuers and Valuation) Rules (2026) 1
