Registered Valuer in India: Your Guide to Certified Asset Valuation

Valuing Assets, Securing Trust

In India, valuing assets—whether a Delhi startup’s shares or a Chennai factory’s machinery—requires precision and trust. Enter the Registered Valuer, a professional certified by the Insolvency and Bankruptcy Board of India (IBBI) to deliver legally binding valuations under the Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016. 

From Bangalore’s tech hubs to Kolkata’s real estate, Registered Valuers ensure transparency. Here’s who they are, what they do and why they matter—your assets, valued right.

What is the Meaning of a Valuer?

A valuer is a qualified professional or firm that assesses the fair market value of assets—stocks, bonds, real estate, machinery or intangibles like patents. They may be chartered accountants, surveyors or specialists in fields like property or finance. For example, a Mumbai valuer might appraise a ₹10 crore commercial plot based on location and market trends. 

Unlike casual estimates, valuers use standardized methods (e.g., comparable sales) to ensure accuracy, serving banks, businesses or courts. However, only Registered Valuers carry IBBI certification for legal compliance.

What is a Registered Valuer?

A Registered Valuer is an individual or entity certified by the IBBI under Section 247, Companies Act, 2013 and Companies (Registered Valuers and Valuation) Rules, 2017 to conduct valuations for regulatory purposes. Introduced in 2017, this role ensures standardized, credible appraisals for assets like land, machinery or shares. 

For instance, a Pune Registered Valuer might value a startup’s equity for a ₹5 crore funding round. They operate in three asset classes: Land & Building, Plant & Machinery and Securities & Financial Assets, ensuring compliance with IBBI’s ethical and technical standards.

What is IBBI Regstered Valuer?

An IBBI Registered Valuer is a professional authorized by the IBBI to perform valuations under the Companies Act, 2013, Insolvency and Bankruptcy Code, 2016 and Valuation Rules, 2017. They’re pivotal in:  

• Insolvency: Valuing a bankrupt firm’s assets—e.g., ₹20 crore machinery in Ahmedabad—for liquidation.  

• Mergers: Appraising shares for a Delhi-NCR acquisition.  

• Financial Reporting: Ensuring IFRS-compliant valuations.

To qualify, they complete IBBI’s training via a Registered Valuer Organisation (RVO), pass a rigorous Valuation Exam and register with IBBI. Their work—e.g., a Kolkata valuer’s ₹15 crore property report—drives transparency in India’s financial ecosystem.

What is Registered Valuation? 

A Registered Valuation is a formal, IBBI-compliant assessment of an asset’s value by a Registered Valuer, adhering to legal standards (Valuation Rules, 2017). For property, it considers market trends, location and comparables—e.g., a ₹2 crore Mumbai flat based on Bandra sales. 

For businesses, it might value shares via DCF (Rule 11UA). These valuations are legally recognized for loans, tax or court cases, unlike informal appraisals. Example: A Chennai valuer’s report ensures a bank approves a ₹50 lakh loan against a factory, minimizing disputes.

Why Are Registered Valuers Important in Financial Services?

Registered Valuers are linchpins:  

• Lending: Banks rely on valuations—e.g., a ₹5 crore Bangalore plot—for loan-to-value ratios.  

• Taxation: Accurate valuations avoid Income Tax Act penalties (Section 56).  

• Mergers/Acquisitions: A Hyderabad startup’s ₹10 crore valuation ensures fair buyouts.  

• Insolvency: Valuers aid IBC resolution—e.g., ₹30 crore asset split in Mumbai.  

• Transparency: Independent reports cut fraud—₹50,000 crore unclaimed assets show stakes.

Their work ensures fair deals, regulatory compliance and trust—e.g., a Kolkata bank trusts a valuer’s ₹8 crore machinery report.

Legal framework governing registered valuers in India 

India’s framework is robust:

• Companies Act, 2013 (Section 247): Mandates Registered Valuers for corporate valuations.
• Insolvency and Bankruptcy Code, 2016: Requires valuers for IBC processes (Section 59).
• Companies (Registered Valuers and Valuation) Rules, 2017: Sets eligibility, ethics and methods.
• IBBI: Certifies valuers, enforces standards via RVOs—e.g., ICAI’s RVO in Delhi.
• SEBI Regulations: Align valuations for listed firms (SEBI (LODR), 2015).
  This ensures objectivity—e.g., a Pune valuer’s report complies with MCA and IBBI, avoiding legal voids (Valuation Rules, 2017).

Role of registered valuers in asset valuation 

Registered Valuers specialize in:

• Real Estate: Valuing land/buildings—e.g., a ₹12 crore Chennai villa using comparables.
• Machinery: Appraising factory assets—e.g., ₹5 crore textile looms in Surat.
• Financial Assets: Valuing shares, bonds—e.g., a Delhi startup’s ₹15 crore equity via DCF.
• Intangibles: Patents, brands—e.g., a Bangalore firm’s ₹2 crore IP.
  Beyond pricing, they assess risks, ensure compliance (Companies Act) and provide impartial reports for decisions—e.g., a Kolkata merger’s ₹20 crore valuation. Their work supports banks, courts and investors, minimizing conflicts.

How to become a Registered Valuer under the Insolvency and Bankruptcy Board of India (IBBI)?

Becoming an IBBI Registered Valuer is rigorous:

• Eligibility:
  • Graduate + 5 years’ valuation experience or postgraduate + 3 years (Valuation Rules, 2017).
  • Member of a professional body (e.g., ICAI, ICSI).
  • Indian citizen, 18+, no major criminal record.
• Training: Complete 50-hour course via RVO—e.g., ICAI RVO’s Mumbai program.
• Exam: Pass IBBI Valuation Exam (tough, conceptual, single attempt, unlimited tries).
• Registration: Apply to IBBI with credentials—e.g., via IBBI portal.
• Asset Classes: Choose Land & Building, Plant & Machinery or Securities & Financial Assets.
  Example: A Delhi CA with 5 years’ experience trains, passes the exam and registers to value startups. Takes 6-12 months, costs ₹50,000-₹1,00,000 (training, exam fees).

Table: Registered Valuer Qualifications

Why is a Registered Valuer needed?

A Registered Valuer is required in financial, business and legal transactions since they provide essential services that assist in various decisions and processes. Their activities guarantee asset valuations are fair, equitable and rule-abiding.

Registered Valuers provide accurate and professional valuations of real estate, machinery and financial assets. Their professional service ensures that valuations accurately reflect the current market value, thereby enabling informed financial decisions.

Precise valuation thereby safeguards financial interests and maintains the fairness of transactions, preventing one from paying excess or selling below price.

What are the Types of Registered Valuers?

Types of registered valuers are:

1. Valuer of machinery and plant

2. Valuer of financial assets and securities

3. Valuer of building and land

The Companies Act of 2013 introduced this notion to India. While it already had it, it did not have proper supervision. The very first valuation was done by a professional named Bill and had been pending for decades. As a result, on October 23, 2017, there was the Company Second Order.

In order to practice as a valuer, one has to register with the concerned authority. Those who are registered with the IBBI can conduct valuations as per the Companies Act of 2013, which came into effect on February 17, 2019.

What are the responsibilities of a Registered Valuer?

The appraisals by a registered valuer are as per the Companies (Registered Valuers and Valuation) Rules, 2017. The central idea is that valuations have to comply with legal directives.

Valuers may use the 2016 Bankruptcy Code, the Insolvency and Bankruptcy Act, 2013 and the Companies Act, 2014 and also SEBI Regulations to conduct their activities.

Frequently Asked Questions 

Q1. What is a Registered Valuer under IBBI?

Ans1. A professional certified by IBBI to value assets under Companies Act, 2013 and IBC, 2016—e.g., a Mumbai valuer for startups.

Q2. What’s the difference between a Valuer and a Registered Valuer?

Ans2. A valuer assesses assets; a Registered Valuer is IBBI-certified for legally binding valuations (Valuation Rules, 2017).

Q3. Why are Registered Valuers important?

Ans3. They ensure fair, compliant valuations for loans, M&A, insolvency—e.g., ₹10 crore Bangalore plot for a bank (₹50,000 crore unclaimed).

Q4. What types of Registered Valuers exist?

Ans4. Land & Building, Plant & Machinery, Securities & Financial Assets—e.g., a Chennai valuer for property (Companies Act, 2013).

Q5. What is a Registered Valuation?

Ans5. An IBBI-compliant asset valuation by a Registered Valuer, legally valid—e.g., ₹5 crore Delhi shares (Valuation Rules).

Q6. How do I become a Registered Valuer?

Ans6. Get a degree, 3-5 yrs experience, RVO training, pass IBBI exam, register—takes 6-12 months (IBBI portal).

Q7. What’s the legal framework for Registered Valuers?

Ans7. Companies Act, 2013 (Section 247), IBC, 2016, Valuation Rules, 2017, regulated by IBBI—ensures ethics.

Q8. What’s the role of Registered Valuers in insolvency?

Ans8. Value assets for resolution/liquidation—e.g., ₹20 crore Kolkata factory for IBC creditors (Section 59).

Q9. How tough is the IBBI Valuation Exam?

Ans9. Highly challenging—concept-heavy, needs strong prep—e.g., DCF mastery for Securities (IBBI, 2024).

Q10. Where are Registered Valuer reports used?

Ans10. Loans, tax, M&A, insolvency, litigation—e.g., ₹15 crore Pune startup valuation for investors (Companies Act).