Fw: comments on draft rules2017 on registered valuers under company act2017

MANJUNATH ENTERPRISE

REGD.GOVT ,BANKS AND FINANCIAL INSTITUTIONS

P2,GEETANJALI RESIDENCY, 6TH CROSS
ASHOKNAGAR ,BANGALORE 560050
(M)9845164247/9341228949/9343047214

On Monday, June 26, 2017 2:31 PM, Manjunath Enterprise <manjunathenterprise@yahoo.com> wrote:

Dear sir

Please find the attachment observations and comments on draft rules2017 registered valuers under companies act 2013

A.V.MANJUNATH ,
VALUER
P2,GEETANJALI RESIDENCY, 6TH CROSS
ASHOKNAGAR ,BANGALORE 560050
(M)9845164247)
Name: A.V.Manjunath

Contact number:9845164247

Email address:manjunathenterprise@yahoo.com

Postal address of stakeholder:A.V.manjunath, P2,Geetanjali residency ,6th Cross,Ashoknagar,Bangalore 560050

 comments on draft rules2017 on registered valuers under company act2017
Yahoo/Sent

 Manjunath Enterprise <manjunathenterprise@yahoo.com>

To:comments_rv@mca.gov.in

Jun 26, 2017 at 2:31 PM

Dear sir

Please find the attachment observations and comments on draft rules2017 registered valuers under companies act 2013

A.V.MANJUNATH ,

VALUER

P2,GEETANJALI RESIDENCY, 6TH CROSS

ASHOKNAGAR ,BANGALORE 560050

(M)9845164247)

comments on companies act.docx

20.7kB
 The draft Companies (Registered Valuers and Valuation) Rules, 2017
My Suggestions/comments are as under:
Sr Rule Number Suggestion/ Comments Justification
No
01 Chapter I Rule 1 (1) should be inserted as follows: By calling by registered valuers will be contradictory to the one
Should be read as registered valuers already being refered as registered valuers specified in other
acts and in other purposes/provisions
(under companies act 2013)
02 Chapter I Should be amended as: .It is always better to have one on nodal agency instead of
Rule 2 (1)(e) having multiple VPO's as members enrolled similar to insurance
To be a Member of the nodal agency to
surveyors under IRDA for the reasons that each organizations
monitor the activities of the professionals
will have different ideologies and each one will have their own
Formed under this act and it should be set of bye laws and rules where in the existing memberships of
Only one formed by the Govt itself under the the organisations are based on the different criteria's and
act. categories .even if the organizations being formed newly for to
enrol as VPO under the act it is no guarantee that they will be
organised as they are formed by the group of people and if in
any case VPO gets delisted from your ,it will have an effect on
the members enrolled under that particular VPO and the whole
system suffers .Let us see to that System not suffer at any cost
and if at all there is no provision from you end to form a nodal
body from your end than make all valuers under independent
enrollments and not to link with VPO'S which can be
independently enrolled only to suggest on policy matters and
the valuer proffessionals will independent will be under your
direct control and supervision.

03 Chapter II Should be amended as follows: As Rules are framed under Companies Act 2013, it should only
Rule 3 (1) be applicable for Valuers engaged as required under Companies
Except as provided elsewhere in these
 Rules, no person shall practice as a act 2013, and not otherwise.
registered valuer for valuation of assets as
required under the Companies Act 2013,
without obtaining a certificate of registration.
04 Chapter II Provided clause should be amended as As per 34 AB under wealth tax act 10 Years experience has
Rule 5 (1) (a) follows: been fixed ,Experience in the sense the technical expertise
which is more relevant in valuation and which covers about
Criteria of eligibility of valuers is to be
75% of the assignment and rest of the things knowledge of
picked from under 34 AB of wealth tax
economics, finance,report writing and arriving at different models
ETc is about 25% for which he has to under go traning
specifically on valuation at least minimum of 2 Years under a
valuer of respective category.
For example Civil engineer with his experience in the field for 10
Years can be able to identify what kind of structure and what
material is being used and touching upon the many other
subjects pertaining to civil engineering such as identifying the
land with the documents with survey sketch where in
professionals from other categories cannot do as the property
itself wrongly identified the fundamental purpose will be defeated
Similary civil engineer cannot identify what sought of chemical it
is and if it is to valued the Chemical engineer only can do with
histen years experiency

Hence eligibiltity of valuers under 34 AB under wealth tax act is

ideal and similar that can be adopted

05 Chapter II Should be amended as follows: A Foreigner Valuer residing in India may not be conversant with
Rule 5 (1) (f) and in know of several Indian Laws applicable in Valuation.
is not a citizen of India, or is a person not
residing in India Very importantly, he is most likely to employ Indian Valuer and
Practice, which is not proper.
06 Chapter II This rule needs to be deleted. Nodal body to be formed directly under the act by the govt
Rule 5 (1) (h) itselfTo have a control and avoiding mushrooming of
Otherwise as specified in Sl no3 as above
organizations avoiding hard ship to members
The organisations forming for the only specifc purpose under er
 companies act as VPO You will be curtailing the freedom of an
organisation

07 Chapter II … if all the partners are not regsitered This is a mandatory requirement to ensure that the entity be
5 (2) (d) valuers and practicing in India. dedicated to valuation, and the registrations are not misused.
This is the only way unbiased valuations can be ensured.
This is in line with the provisions of Chartered Accountant Act
1949, Cost and Works Accountants Act 1959, Architects Act
1972, Company Secretary Act 1980 etc.

8 Chapter II Should be amended as: Membership of every professional Institute set up under an Act
Rule 6 (iii) of the Parliament has no relevance to the Valuation Profession.
membership of a professional institute set
e.g. Medical Professionals / Insurance Professionals /
up under an Act of Parliament for valuer
Investment Professionals etc are all members of Professional
professionals for the class of assets (for
Institute set up under an Act of Parliament, but are not eligible to
which the valuer has sought registration),
carry out Valuation exercise.
and at least two years of experience as
valuer (for the class of assets for which
registration is sought) thereafter.

9 Chapter II This section should read as: Clarity on eligibility criteria should be a part of the rule and
Rule 6 Explanation should not be left to interpretation
The ‘specified discipline’ referred to in (ii)
above shall mean the specified discipline
which is relevant for valuation for the class
of asset for which the registration is sought,
as per Wealth Tax Act us 34 AB , and
member of a valuation professional
organization recognized under these rules
10 Chapter II To be amended as to be member to be Nodal body sets Uniform rules and control over the profession
Rule 9 (d) registered Under the nodal body formed for the reason that there no specific act under the parliament for
under companies act as per the provision of this profession of valuation unlike CA.CS,ICWAI where there is
companies act a provision for going for different verticals as and when need
arises .The VPOs which are being discussed here are most of
them are society registered and to have an control on them will
 only becomes an big task in turn members and profession will
suffer

11 Chapter III This rule provides for Application for Once eligibility, qualification and experience criteria are satisfied
Recognition of Valuer Professional by the valuer, there is no need for the valuers registration with
Organisation. the VPO.
Sec. 247 (1) and Sec. 469 of Companies Regulating VPOs under these Rules oversteps the provisions of
Act does not provide for regulation of the Companies Act, and the whole chapter and all references to
Valuers Professional Organisation (VPO) VPO must be removed from the Rules.
but is restricted only to Registered Valuers
undertaking Valuation Works of the
company’s assets. Companies Act 2013
does not provide for regulation of Valuers’
Profession (Such as Valuers Act) or for
regulation and registration of VPO. Framing
of rules beyond provisions of the
Companies Act is bad in law. Hence
provision of Rule 13(1) is bad in law and
should be deleted.
12 Chapter IV There should be a valuer representation
Rule 17 (2)
One member from each category
13 Schedule II This rule needs to be deleted. Provisions under Companies Act 2013 are for regulating Valuers
 Form D who would undertake Valuation Assignments for registered
Otherwise as specified in Sl no3 as above
 Annexure to Form D companies. There is no provision for regulating VPO. These
 Form E rules are bad in law & these sections and all reference to them
must be deleted.

14 Schedule III This rule needs to be deleted. Provisions under Companies Act 2013 are for regulating Valuers
who would undertake Valuation Assignments for registered
Otherwise as specified in Sl no3 as above
companies. There is no provision for regulating VPO. This
schedule is bad in law & must be deleted.
15 Schedule III This rule needs to be deleted. A Nodal organization under companies act to be formed only
Part I which can upheld the dignity of profession be held and avoids
Otherwise as specified in Sl no3 as above
4 the conflicts between members and VPOs as suggested for petty
issues as they have the binding on the members all kind of
unhealthy politics will creep in will damage the profession.