The Companies (Registered Valuers and Valuation) Amendment Rules 2026, notified as G.S.R. 432(E) and in force from 5 June 2026, amend Rule 12(1)(i) of the 2017 Rules and require every registered valuer organisation (RVO) to hold a minimum paid-up share capital of Rs 25 lakh. An RVO must also be a Section 8 company whose sole object is regulating valuers of one or more asset classes, with bye-laws that follow Annexure III of the principal Rules. The requirement falls on the organisations that enrol valuers, not on individual registered valuers. Existing RVOs that fall short of the capital floor have until 31 March 2028 to comply.
This article sets out what the Companies (Registered Valuers and Valuation) Amendment Rules 2026 change, who must comply, and by when.
The amendment sits inside a system most people never see. Every share swap in a merger, every asset sold in an insolvency, and every fresh issue of shares to a foreign investor runs through a valuation, and the person who signs that valuation is a registered valuer enrolled with a registered valuer organisation. When the Ministry of Corporate Affairs raises the bar for those organisations, it is tightening the gate that the whole valuation profession passes through.
The change itself is narrow in wording and wide in reach. It rewrites a single clause about who can run an RVO, yet it touches the financial soundness of the bodies that front-line-regulate valuers across the country. The sections below separate what actually changed from the framework it sits in, so a company secretary, a valuer, or a student can each take away the part that matters to them.
What do the Companies (Registered Valuers and Valuation) Amendment Rules 2026 change?
The Companies (Registered Valuers and Valuation) Amendment Rules 2026 change one clause at the core: they amend Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017 and set out the conditions an organisation must satisfy to be recognised as a registered valuer organisation. The headline addition is a floor on capital. An RVO must now maintain a minimum paid-up share capital of Rs 25 lakh, a threshold the 2017 Rules did not previously state in this form.
The Ministry of Corporate Affairs notified the amendment as G.S.R. 432(E), dated 1 June 2026, in exercise of its powers under Section 247 read with Sections 458, 459 and 469 of the Companies Act, 2013. The rules came into force on 5 June 2026, the date of their publication in the Official Gazette.
Under the amended clause, an organisation must satisfy four conditions to be recognised as an RVO. It must be registered as a company under Section 8 of the Companies Act, 2013, or under the earlier Section 25 of the Companies Act, 1956. Its sole object must be dealing with matters relating to the regulation of valuers of one or more asset classes. It must maintain the Rs 25 lakh minimum paid-up share capital. And its bye-laws must contain the requirements specified in Annexure III of the principal Rules.
The four conditions work together as a single eligibility test, but only the capital floor is the new pressure point. The Section 8 status, the sole-object limit, and the Annexure III bye-laws describe what an RVO has always been, a not-for-profit professional body built for one regulatory purpose. The Rs 25 lakh figure adds a financial filter on top of that character.
When did the Companies (Registered Valuers and Valuation) Amendment Rules 2026 come into force?
The amendment came into force on 5 June 2026. The Ministry signed the notification on 1 June 2026, and the rules took effect on the date the Gazette published them, four days later. There is no separate appointed date, so the operative date and the publication date are the same.
That date matters for one group in particular. Any organisation applying for fresh recognition as an RVO on or after 5 June 2026 must meet all four conditions from the outset, including the capital floor. The transition relief, covered further below, is written only for RVOs that already existed when the rules changed.
The four conditions an RVO must meet under Rule 12(1)(i)
As amended by the Companies (Registered Valuers and Valuation) Amendment Rules 2026.
Rs 25 lakh capital
Minimum paid-up share capital of Rs 25 lakh. This is the new requirement the amendment adds.
Section 8 company
Registered under Section 8 of the Companies Act, 2013 (or the earlier Section 25 of the 1956 Act).
Sole object
Sole object is dealing with the regulation of valuers of one or more asset classes.
Annexure III bye-laws
Bye-laws contain the requirements set out in Annexure III of the 2017 Rules.
Which organisations must meet the new Rs 25 lakh capital requirement?
The requirement falls on registered valuer organisations, not on individual registered valuers. An RVO is the professional body that a valuer joins before enrolling as a registered valuer, and the Rs 25 lakh capital floor is a condition on that body, not on the members it enrols. A practising valuer does not have to show any personal capital because of this amendment.
Only a small set of organisations sit in this category. Bodies such as the ICAI Registered Valuers Organisation, the ICMAI Registered Valuers Organisation, and the IOV Registered Valuers Foundation are recognised RVOs that enrol valuers across the three asset classes. These are the entities the amendment speaks to, which is one reason the change draws little public attention despite reshaping the entry point to the profession.
The distinction between the organisation and the individual is worth holding onto, because coverage of the amendment sometimes blurs it. A registered valuer reading the headline figure may worry about a personal net-worth test that does not exist. The obligation to raise or maintain Rs 25 lakh of paid-up capital rests with the RVO as an institution. For a fuller picture of the individual’s role and duties, iPleaders has a detailed explainer on the registered valuer under the Companies Act, 2013.
Registered valuers and RVOs under Section 247 of the Companies Act, 2013
Registered valuers operate under Section 247 of the Companies Act, 2013, which is administered through a two-tier structure rather than by a single regulator. Section 247 requires that where a valuation of property, stocks, shares, or net worth is needed under the Act, it must be done by a person registered as a valuer. The rules that flesh out who can register, and how, are the Companies (Registered Valuers and Valuation) Rules, 2017.
The apex of the structure is the Insolvency and Bankruptcy Board of India. By a notification dated 23 October 2017, the Central Government delegated its functions and powers as the Authority under the 2017 Rules to the IBBI. The Board sets standards, maintains the register of valuers, and recognises the organisations that sit one level below it.
Those organisations are the RVOs, and they act as front-line regulators. An RVO enrols members, delivers the mandatory training, and enforces a code of conduct on its valuers. The IBBI recognises and oversees the RVOs; the RVOs enrol and discipline the valuers. The Rs 25 lakh capital rule lands on this middle layer, the layer that stands between the Board and the working professional. India follows the model where valuation and regulatory compliance run through this recognised-organisation route rather than direct licensing by the state.
Which asset classes can a registered valuer be registered for?
A registered valuer can be registered for one or more of three asset classes: Land and Building, Plant and Machinery, and Securities or Financial Assets. Each class has its own eligibility qualifications and its own valuation examination, because valuing a factory shed calls for different expertise from valuing a block of unlisted shares.
The asset-class structure explains the wording of the amendment. An RVO’s sole object must be regulating valuers of “one or more asset classes”, which lets a body specialise in a single class or cover all three. The capital floor applies to the organisation whichever classes it serves, so a single-class RVO and a three-class RVO face the same Rs 25 lakh figure.
How registered valuers are regulated, and how you become one
The two-tier structure under Section 247
Authority
Sets standards, maintains the register of valuers, and recognises RVOs (delegated by the Central Government on 23 October 2017).
▼
Front-line regulator
Enrol, train and discipline valuers. The new Rs 25 lakh capital floor applies at this layer.
▼
Professional
Enrols through an RVO to sign valuations required under the Companies Act, 2013.
Three asset classes
Land and BuildingPlant and MachinerySecurities or Financial Assets
The five-step path to registration
Check the eligibility qualifications for the chosen asset class.
Take primary membership of an IBBI-recognised RVO.
Complete the mandatory 50-hour educational course.
Enrol for and pass the valuation examination in that asset class.
Apply to the IBBI for registration once the pass certificate is in hand.
What must an existing RVO do before 31 March 2028?
An existing RVO that does not yet meet the capital floor must raise its paid-up share capital to Rs 25 lakh by 31 March 2028. The amendment gives organisations that were already recognised when the rules changed a transition window to reach the new threshold, rather than requiring compliance overnight. The relief is specific to the capital condition.
For an organisation checking its own position, the practical work breaks into a short set of confirmations:
- Confirm the paid-up share capital is at least Rs 25 lakh, and plan a capital increase before 31 March 2028 if it is not.
- Confirm the body is registered as a Section 8 company under the Companies Act, 2013, or holds the earlier Section 25 registration.
- Confirm the memorandum keeps the sole object limited to regulating valuers of its asset class or classes.
- Confirm the bye-laws carry the requirements set out in Annexure III of the principal Rules.
The transition window applies to organisations that were already RVOs. A body seeking fresh recognition on or after 5 June 2026 gets no such runway and must satisfy every condition, including the Rs 25 lakh capital, at the point of application. That difference between an incumbent and a new applicant is the sharpest practical line the amendment draws.
Does the amendment change how you become a registered valuer?
The amendment does not change the individual pathway to becoming a registered valuer, but it reinforces the role of the RVO as the compulsory gateway. A person still becomes a registered valuer by joining an RVO, training, passing the examination, and applying to the IBBI. What the amendment does is raise the standard of the organisation at the first of those steps.
What does an aspiring registered valuer need to do?
An aspiring registered valuer moves through five steps under the 2017 Rules. First, check the eligibility qualifications for the chosen asset class. Second, take primary membership of an IBBI-recognised RVO. Third, complete the mandatory educational course the RVO delivers. Fourth, enrol for and pass the valuation examination in that asset class. Fifth, apply to the IBBI for registration once the pass certificate is in hand.
The RVO sits at steps two, three, and four, which is why its standards matter to every candidate. A stronger financial and governance base for the organisation is meant to translate into steadier training and enrolment for the people who pass through it. The route to becoming a registered valuer stays the same in its steps; the amendment works on the institution that runs three of them.
For anyone weighing valuation as a career rather than a single qualification, the skill feeds a wider market. Valuation work underpins mergers, private equity, and fundraising, and the finance-career comparison of M&A versus private equity in India shows where a strong grounding in valuation can lead.
Why the MCA tightened registered valuer organisation norms
The Ministry tightened RVO norms to raise the financial soundness and governance of the bodies that front-line-regulate valuers. A registered valuer organisation is not an ordinary company; it disciplines professionals, holds their training records, and enforces a code of conduct. A paid-up capital floor works as a solvency and seriousness filter, so that a body taking on a regulatory role has a minimum institutional base behind it. This reading of the rationale comes from professional analyses of the amendment rather than a quoted Ministry recital.
The stakes explain the direction of travel. A valuation is not a private opinion; it fixes the price at which shares change hands in a merger, the reserve at which assets are sold in an insolvency, and the value recorded when a company issues shares to a new investor. If the organisation that regulates the valuer is thin or unstable, the weakness runs down the chain to those transactions. The sole-object condition guards against mission drift, and the Annexure III bye-laws standardise how each RVO governs itself.
The same logic shows up elsewhere in Indian corporate regulation, where the valuer’s independence is treated as a safeguard for the parties who rely on the number. In takeovers, for instance, an independent registered valuer’s pricing protects minority shareholders, a point covered in this analysis of the SEBI Takeover Code amendment. Strengthening the organisation that stands behind the valuer is of a piece with that wider concern for reliable, independent valuation.
Frequently asked questions
When did the Companies (Registered Valuers and Valuation) Amendment Rules 2026 come into force?
The rules came into force on 5 June 2026, the date they were published in the Official Gazette. The Ministry of Corporate Affairs signed the notification, G.S.R. 432(E), on 1 June 2026. There is no separate appointed date, so a new applicant for RVO recognition has had to meet the amended conditions since 5 June 2026.
What is the new minimum paid-up capital for a registered valuer organisation?
A registered valuer organisation must maintain a minimum paid-up share capital of Rs 25 lakh under the amended Rule 12(1)(i). This is the headline change the amendment introduces. It applies to the organisation as an institution, not to the individual valuers it enrols.
Do existing RVOs have to comply immediately?
No. An RVO that was already recognised when the rules changed has until 31 March 2028 to meet the Rs 25 lakh capital requirement. The transition window is written for the capital condition and gives incumbent organisations time to arrange a capital increase if they fall short.
Does the Rs 25 lakh requirement apply to individual registered valuers?
No. The capital floor is a condition on the registered valuer organisation, not on the individual valuer. A practising or aspiring valuer does not have to show any personal capital because of this amendment; the obligation rests with the RVO the valuer joins.
Which asset classes can a registered valuer be registered for?
A registered valuer can register for one or more of three asset classes: Land and Building, Plant and Machinery, and Securities or Financial Assets. Each class has its own eligibility and its own valuation examination. An RVO may regulate valuers of a single class or of all three.
What is Annexure III of the Registered Valuers Rules?
Annexure III of the Companies (Registered Valuers and Valuation) Rules, 2017 sets out the requirements that a registered valuer organisation’s bye-laws must contain, covering matters such as governance, membership, and the conduct of its valuers. The 2026 amendment keeps Annexure III compliance as one of the conditions an RVO must satisfy to be recognised.
References
Statutes and rules
- Companies Act, 2013 (sections referred to: 247, 458, 459, 469)
- Companies (Registered Valuers and Valuation) Rules, 2017 (the principal Rules amended, including Rule 12 and Annexure III)
Regulatory and primary sources
- Ministry of Corporate Affairs, Notification G.S.R. 432(E) dated 1 June 2026, the Companies (Registered Valuers and Valuation) Amendment Rules, 2026, in force 5 June 2026
- Central Government notification dated 23 October 2017 delegating the Authority function under the 2017 Rules to the Insolvency and Bankruptcy Board of India
- Insolvency and Bankruptcy Board of India, framework on registered valuers, asset classes, and the registration process
- The Gazette of India, for the notified text of the amendment
This article is for informational purposes only and does not constitute legal advice. For specific legal guidance, consult a qualified legal professional.
