CMA Final · Strategic Performance Management and Business Valuation · Laws and Compliance in Business Valuation
Under the Companies (Registered Valuers and Valuation) Rules, 2017, a person applying for registration as a valuer must first pass a prescribed examination and also satisfy qualification and experience criteria. Which statement about the registration of a valuer under these Rules is correct?
Registration under the Companies (Registered Valuers and Valuation) Rules, 2017 is asset-class specific. A valuer must be qualified and enrolled with a Registered Valuers Organisation for a particular class and may value only that class. Disclosure cannot substitute for registration in another class.
- AA registered valuer is free to undertake a valuation of an asset class for which he is not registered, provided he discloses this in the report
- BA valuer may be registered for any asset class on the basis of general commerce qualification alone, with no valuation examination
- CAn individual registered with a Registered Valuers Organisation (RVO) as a partner or member must be registered for a specific asset class in which he is qualified, and may value only that classCorrect
- DA Registered Valuers Organisation itself signs the valuation report on behalf of every valuer enrolled with it
Explanation
Registration is asset-class specific (for example land and building, plant and machinery, securities or financial assets). A valuer must hold qualification, experience and pass the valuation examination for that class, and conducts valuations only for the class in which he is registered. The option allowing any class with disclosure is wrong because disclosure does not cure lack of registration.
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