MCA Amends Registered Valuer Organisation Eligibility Criteria: Key Changes Under the 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 revised eligibility requirements for Registered Valuer Organisations (RVOs). The amendment modifies Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017 and establishes specific conditions that RVOs must satisfy.

Key Highlights

• Minimum paid-up share capital requirement of ₹25 lakh introduced for Registered Valuer Organisations.
• RVOs must be registered under Section 25 of the Companies Act, 1956 or Section 8 of the Companies Act, 2013.
• The sole object of the organisation must relate to the regulation of valuers of one or more asset classes.
• Bye-laws must contain the requirements specified under Annexure III of the Rules.
• Existing RVOs that do not meet the capital requirement have time until 31 March 2028 to comply.
• The amendment came into force on the date of its publication in the Official Gazette.

Breakdown of the RVO Amendment

The Companies (Registered Valuers and Valuation) Amendment Rules, 2026 revise the eligibility framework applicable to Registered Valuer Organisations. Through this amendment, MCA has substituted Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017 and prescribed specific structural and governance-related requirements that an organisation must satisfy to function as an RVO.

The amendment focuses on four key areas: legal constitution, minimum paid-up capital, organisational objectives, and bye-law requirements. Together, these provisions define the foundational criteria that Registered Valuer Organisations must maintain.

1. Registration as a Section 8 or Section 25 Entity

An RVO must be registered either:

• Under Section 25 of the Companies Act, 1956; or
• Under Section 8 of the Companies Act, 2013.

This requirement ensures that the organisation operates within the prescribed non-profit regulatory framework applicable to such entities.

2. Minimum Paid-Up Share Capital of ₹25 Lakh

The amendment introduces a mandatory minimum paid-up share capital requirement of ₹25 lakh for Registered Valuer Organisations.

• Every RVO must maintain paid-up share capital of at least ₹25 lakh.
• The requirement applies to organisations seeking to satisfy the eligibility conditions under Rule 12.
• Existing organisations are provided a transition period for compliance.

3. Sole Object Requirement

The amendment specifies that the organisation’s sole object must be:

• Dealing with matters relating to the regulation of valuers of an asset class or asset classes.

This means the organisation’s primary purpose must remain focused on matters connected with regulating valuers and valuation-related activities.

4. Bye-Laws Requirement

The organisation must maintain bye-laws containing the requirements specified in Annexure III of the Rules.

• The bye-laws must incorporate the prescribed requirements.
• Compliance with Annexure III forms part of the eligibility framework under Rule 12.

Overview

In essence, the amendment establishes four mandatory eligibility conditions for Registered Valuer Organisations: appropriate legal structure, minimum paid-up capital of ₹25 lakh, a sole object related to regulation of valuers, and bye-laws aligned with Annexure III requirements.

 

Practical Example of the Amendment in Action

Consider an organisation operating as a Registered Valuer Organisation under Section 8 of the Companies Act, 2013.

At the time the amendment comes into effect:

• The organisation has paid-up share capital of ₹15 lakh.
• Its sole object relates to regulating valuers.
• Its bye-laws contain the prescribed requirements.

Under the amended rule, the organisation would continue to operate; however, it must increase its paid-up share capital to at least ₹25 lakh on or before 31 March 2028 to comply with the amended eligibility requirement.

This example demonstrates how the transition provision applies to existing RVOs that currently fall below the newly prescribed capital threshold.

 

Key Changes Introduced by the Amendment

Introduction of Minimum Capital Requirement

A minimum paid-up share capital requirement of ₹25 lakh has been prescribed for Registered Valuer Organisations.

Revised Eligibility Framework

Rule 12(1)(i) has been substituted with a revised set of eligibility conditions applicable to RVOs.

Formal Recognition of Sole Object Requirement

The amendment expressly requires that the organisation’s sole object relate to regulating valuers of one or more asset classes.

Mandatory Alignment of Bye-Laws

RVOs must ensure that their bye-laws contain the requirements specified under Annexure III.

Transitional Compliance Window

Existing Registered Valuer Organisations that do not presently meet the minimum capital requirement have been granted time until 31 March 2028 for compliance.

 

Key Takeaways

• MCA has amended Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017.
• Registered Valuer Organisations must have a minimum paid-up share capital of ₹25 lakh.
• RVOs must be registered under Section 25 of the Companies Act, 1956 or Section 8 of the Companies Act, 2013.
• The organisation’s sole object must relate to the regulation of valuers.
• Bye-laws must contain the requirements specified under Annexure III.
• Existing RVOs have until 31 March 2028 to comply with the new capital requirement.
• The amendment took effect from the date of publication in the Official Gazette.

 

Summary of the Amendment

The Companies (Registered Valuers and Valuation) Amendment Rules, 2026 introduce revised eligibility requirements for Registered Valuer Organisations by establishing a minimum paid-up capital threshold, reaffirming organisational purpose requirements, and mandating compliance with prescribed bye-law standards. Existing organisations have been provided a transition period until 31 March 2028 to meet the capital requirement, while the amended framework provides a clearer set of eligibility conditions for entities operating as Registered Valuer Organisations under the valuation regulatory regime.