MCA Amends Registered Valuers Rules: ₹25 Lakh Capital Requirement for RVOs

The Ministry of Corporate Affairs (MCA) has notified the Companies (Registered Valuers and Valuation) Amendment Rules, 2026, introducing important changes to the eligibility criteria for Registered Valuer Organisations (RVOs). The amendment aims to strengthen the governance and financial stability of organisations responsible for regulating registered valuers in India. (Corporate Law Updates)

Key Amendments Introduced

The amendment revises Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017 and introduces the following changes:

• Minimum paid-up share capital increased to ₹25 lakh for organisations seeking recognition as Registered Valuer Organisations (RVOs).

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• RVOs must continue to be registered under Section 25 of the Companies Act, 1956 or Section 8 of the Companies Act, 2013.

• The organisation must have the sole object of regulating valuers of one or more asset classes.

• The organisation's bye-laws must comply with the requirements specified in Annexure III of the Rules. (Corporate Law Updates)

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Relief for Existing Registered Valuer Organisations

Recognising that existing RVOs may require time to meet the enhanced capital requirement, the MCA has provided a transitional relaxation.

Registered Valuer Organisations that do not have the prescribed ₹25 lakh paid-up share capital as on the commencement of the amendment rules have been granted time until 31 March 2028 to comply with the revised requirement. (Corporate Law Updates)

Effective Date

The Companies (Registered Valuers and Valuation) Amendment Rules, 2026 were notified vide Notification No. G.S.R. 432(E) dated 1 June 2026 and came into force upon their publication in the Official Gazette. (Corporate Law Updates)

Why This Amendment Matters

The revised eligibility criteria are intended to:

• Improve the financial strength and credibility of Registered Valuer Organisations.

• Promote higher standards of governance and professional regulation.

• Ensure that only adequately capitalised organisations are recognised as RVOs.

• Enhance confidence in the valuation ecosystem under the Companies Act, 2013. (Legality Simplified)

Action Points for Existing and Prospective RVOs

Registered Valuer Organisations should consider the following:

• Review the current paid-up share capital position.

• Plan capital infusion, if required, well before 31 March 2028.

• Ensure continued compliance with all eligibility requirements under Rule 12, including the organisational structure and bye-laws.

• Organisations seeking fresh recognition must satisfy the revised capital requirement before applying for recognition. (Corporate Law Updates)

Conclusion

The MCA's amendment marks an important step towards strengthening the institutional framework governing registered valuers in India. Existing RVOs have been given a reasonable transition period, while new applicants must comply with the enhanced eligibility criteria immediately. Organisations should review their compliance status and take timely action to meet the revised requirements.

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EXCERPT: MCA has amended the Registered Valuers Rules by prescribing a ₹25 lakh minimum paid-up capital for RVOs, with compliance allowed until 31 March 2028 for existing organisations.

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SEO_DESCRIPTION: Learn about the MCA's new ₹25 lakh capital requirement for Registered Valuer Organisations and the 31 March 2028 compliance deadline. Contact a tax professional today.