MCA Notifies Companies (Registered Valuers and Valuation) Amendment Rules, 2026

The Ministry of Corporate Affairs (MCA) has notified the Companies (Registered Valuers and Valuation) Amendment Rules, 2026, introducing important changes to the eligibility criteria for Registered Valuer Organisations (RVOs). The amendment strengthens the regulatory framework governing valuation professionals in India and is effective from 1 June 2026 through Notification G.S.R. 432(E) issued under Section 247 read with Sections 458, 459 and 469 of the Companies Act, 2013.

Key Changes Introduced

1. Minimum Paid-up Share Capital Increased to ₹25 Lakh

The amendment substitutes Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017 and now requires every Registered Valuer Organisation seeking recognition to:

• Be registered under Section 25 of the Companies Act, 1956 or Section 8 of the Companies Act, 2013.
• Have a minimum paid-up share capital of ₹25 lakh.
• Have the sole object of regulating valuers of one or more asset classes.
• Maintain bye-laws containing the requirements specified in Annexure III of the Rules.

Earlier, the Rules did not prescribe any minimum paid-up share capital requirement for RVOs.

Transition Period for Existing RVOs

Recognising that existing Registered Valuer Organisations may require time to comply, the MCA has provided a transition period.

Existing RVOs that do not meet the revised capital requirement as on the date of commencement of the Amendment Rules must comply on or before 31 March 2028.

This provides adequate time for existing organisations to strengthen their capital base without affecting their recognition immediately.

Amendment to Eligibility Conditions

The amendment revises the eligibility conditions under Rule 12 by replacing clause (i) with updated requirements relating to:

• Minimum paid-up share capital
• Sole regulatory object
• Mandatory compliant bye-laws under Annexure III

The objective is to ensure that Registered Valuer Organisations possess adequate financial strength and governance standards while regulating valuation professionals.

Impact of the Amendment

The revised framework is expected to:

• Improve the financial stability of Registered Valuer Organisations.
• Enhance governance and regulatory oversight.
• Strengthen confidence in the valuation ecosystem.
• Promote higher standards of professionalism and accountability.

The amendment primarily affects Registered Valuer Organisations and entities intending to obtain recognition as an RVO. Individual registered valuers are not directly impacted by the revised capital requirement.

Conclusion

The Companies (Registered Valuers and Valuation) Amendment Rules, 2026 represent an important regulatory reform aimed at strengthening India's valuation framework. Organisations functioning as or planning to become Registered Valuer Organisations should review their capital structure and governance arrangements to ensure timely compliance before 31 March 2028.

Source: Ministry of Corporate Affairs Notification G.S.R. 432(E) dated 1 June 2026, amending Rule 12 of the Companies (Registered Valuers and Valuation) Rules, 2017.

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