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

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

The Ministry of Corporate Affairs (MCA) has amended the Companies (Registered Valuers and Valuation) Rules, 2017, effective 01 June 2026. It amended Rule 12(1)(i) relating to the eligibility criteria for Registered Valuer Organisations (RVOs).

Key Amendments

1. RVOs must have minimum paid-up share capital of ₹25 lakh.
2. Conditions to be recognised as RVOs, the organisation must:

• It has been registered under section 25 of the Companies Act, 1956 or section 8 of the Companies Act, 2013;
• the sole object of dealing with matters relating to the regulation of valuers of an asset class or asset classes;
• Have bye-laws containing the requirements specified in Annexure III of the Rules; and
• Have a minimum paid-up share capital of ₹25 lakh.

Exemption to Existing RVOs:
An exemption is provided to RVOs that do not have minimum paid up capital as of the date of commencement of the Companies (Registered Valuer and Valuation) Amendment Rules, 2026; they shall comply with the requirement on or before 31^st March, 2028.

Before and After Amendment: What Changed?
 Before the Companies (Registered Valuers and Valuation) Amendment Rules, 2026, there was no minimum paid-up capital requirement for a Registered Valuer Organisation (RVO). The amendment has made changes by introducing a mandatory minimum paid-up capital of ₹25 lakh. However, the registration under Section 25 of the Companies Act, 1956 or Section 8 of the Companies Act, 2013, sole object of dealing with matters relating to the regulation of valuers of an asset class or asset classes, and bye-laws containing the requirements specified in Annexure III of the Rules remain unchanged. Existing  RVOs have now been granted time until 31^st March 2028 to comply with the paid-up capital requirements.

Practical Impact on Existing RVOs:

1. RVOs may need to increase the paid-up capital to meet the new requirement of the threshold limit i.e., 25lakh.
2. Where necessary, changes may be required in the MOA, AOA and related documents to facilitate a capital increase.
3. RVOs need to obtain necessary approvals, update statutory compliance and ensure compliance according to the amended rules.
4. Existing RVOs have been granted time until 31 March 2028 to comply with new capital.

Challenges and Concerns:

1. Small RVOs with limited financial resources find it difficult to raise additional capital.
2. RVOs need to take additional compliance requirements to increase capital, including obtaining approvals, maintaining statutory records and complying with the regulatory requirements.
3. Compliance with the amendment may involve legal, professional, and administrative expenses related to capital infusions.
4. Although MCA has provided a time limit for existing RVOs until 31 March 2028, RVOs will still need to plan and execute compliance measures to avoid last minute regulatory requirements.
5. The requirement of maintaining a minimum paid-up capital of ₹25 lakh may act as a difficulty for small entities seeking recognition as RVOs.

Conclusion
Despite these challenges, the amendment is expected to enhance financial strength, governance and  professionalism of RVOs. The transition period provides sufficient time to organisation to comply with the threshold limit. In the long term, the amendment is likely to contribute to a more robust, transparent, and credible valuation ecosystem in India.