MCA Amends Registered Valuers Rules: Higher Capital Requirement for RVOs from 1 June 2026

The Ministry of Corporate Affairs (MCA) has notified the Companies (Registered Valuers and Valuation) Amendment Rules, 2026, bringing important changes to the regulatory framework governing Registered Valuer Organisations (RVOs). The amendments came into force on 1 June 2026 and are intended to strengthen the governance and financial capacity of organisations involved in regulating registered valuers.

Key Changes Introduced

As per MCA Notification G.S.R. 432(E) dated 1 June 2026, the following amendments have been made to Rule 12(1)(i) of the Companies (Registered Valuers and Valuation) Rules, 2017:

• Registered Valuer Organisations must now have a minimum paid-up share capital of ₹25 lakh.

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• Existing RVOs that do not meet the revised capital requirement have been granted time up to 31 March 2028 to comply.

• The amendment also revises the eligibility conditions for recognition as an RVO under Rule 12.

Revised Eligibility for Registered Valuer Organisations

To be recognised as an RVO, an organisation must:

• Be registered under Section 25 of the Companies Act, 1956 or Section 8 of the Companies Act, 2013.

• Maintain a minimum paid-up share capital of ₹25 lakh.

• Have the sole object of dealing with matters relating to the regulation of valuers of one or more asset classes.

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• Adopt bye-laws containing the requirements specified in Annexure III of the Rules.

Transition Relief for Existing RVOs

Recognising that some existing organisations may require time to strengthen their capital base, the MCA has provided a transitional relaxation.

Existing RVOs that do not satisfy the revised paid-up capital requirement as on 1 June 2026 may continue to operate, provided they achieve compliance on or before 31 March 2028.

Impact on Stakeholders

The amendment is expected to:

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

• Enhance governance standards within the valuation profession.

• Promote better regulatory oversight of valuers.

• Encourage stronger institutional support for valuation professionals and stakeholders relying on valuation reports.

The changes do not alter the registration process for individual registered valuers but primarily affect organisations seeking recognition or continuing recognition as RVOs.

Conclusion

The Companies (Registered Valuers and Valuation) Amendment Rules, 2026 represent an important step towards strengthening the valuation ecosystem in India. Registered Valuer Organisations should review their capital structure and governance framework well before the compliance deadline to ensure uninterrupted recognition.

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