On 1 June 2026, Ministry of Corporate Affairs (MCA) announced Companies (Registered Valuers and Valuation) Amendment Rules, 2026 through Notification No. G.S.R. 432(E). The amendments primarily revise the eligibility criteria for entities seeking recognition as Registered Valuer Organizations (RVOs). The main focus of the amendment is to enhance the institutional level of the valuation profession in India by raising the financial and other operation standards of RVOs.
The main change modifies Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017 by fixing a minimum paid-up share capital of Rs. 25 lakhs for entities intending to be recognized as Registered Valuer Organizations (RVOs). Previously, the Rules mandated an RVO to be registered under Section 8 of the Companies Act, 2013, manage one or more asset classes, and follow the prescribed by-laws but they did not specify any minimum capital requirement. As per the revised regulations, each RVO must exclusively engage in the regulation and development of the valuation profession while also having the new capital limit. Existing RVOs have been set a deadline until 31 March 2028 to comply, so that their operations are not interrupted during transition.
This change will probably help RVOs in enhancing their financial stability and credibility, as they are the ones who not only regulate registered valuers but also organize educational programmes, keep track of professional conduct, and uphold ethical standards in the valuation world. By demanding a higher capital base, the Government intends to limit to financially stable and well-managed professional organizations the right to regulate valuation practitioners. The notification is a response to a public consultation that the MCA launched in February 2026, giving stakeholders the chance to submit their views on the introduction of a minimum paid-up capital requirement. The final amendment in a large part mirrors the draft proposal but at the same time, it gives existing entities sufficient time to reach compliance.
Changes in the Rules will affect both current and future Registered Valuer Organizations whereas new applicants must meet the upgraded eligibility criteria at the time of recognition, current RVOs will have to bring their capital structure in line with the prescribed limit before the end of the transition period. The amendment is intended to further enhance the regulatory structure for valuation professionals.
As the role of valuations is becoming increasingly significant in mergers and acquisitions, insolvency, corporate restructuring and financial reporting, this amendment will likely raise the level of institutional credibility and help foster greater professional standards throughout the corporate sector.