Section 3 in Companies (Registered Valuers and Valuation) Rules, 2017
3. Eligibility for registered valuers.
(1)A person shall be eligible to be a registered valuer if he-(a)is a valuer member of a registered valuers organisation;Explanation. - For the purposes of this clause, "a valuer member" is a member of a registered valuers organisation who possesses the requisite educational qualifications and experience for being registered as a valuer;(b)is recommended by the registered valuers organisation of which he is a valuer member for registration as a valuer;(c)has passed the valuation examination under rule 5 within three years preceding the date of making an application for registration under rule 6;(d)possesses the qualifications and experience as specified in rule 4;(e)is not a minor;(f)has not been declared to be of unsound mind;(g)is not an undischarged bankrupt, or has not applied to be adjudicated as a bankrupt;(h)is a person resident in India;Explanation. - For the purposes of these rules `person resident in India' shall have the same meaning as defined in clause (v) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999) as far as it is applicable to an individual;(i)has not been convicted by any competent court for an offence punishable with imprisonment for a term exceeding six months or for an offence involving moral turpitude, and a period of five years has not elapsed from the date of expiry of the sentence:Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for a period of seven years or more, he shall not be eligible to be registered;(j)has not been levied a penalty under section 271J of Income-tax Act, 1961 (43 of 1961) and time limit for filing appeal before Commissioner of Income-tax (Appeals) or Income-tax Appellate Tribunal, as the case may be has expired, or such penalty has been confirmed by Income-tax Appellate Tribunal, and five years have not elapsed after levy of such penalty; and(k)is a fit and proper person:Explanation. - For determining whether an individual is a fit and proper person under these rules, the authority may take account of any relevant consideration, including but not limited to the following criteria-(i)integrity, reputation and character,(ii)absence of convictions and restraint orders, and(iii)competence and financial solvency.(2)No partnership entity or company shall be eligible to be a registered valuer if-(a)it has been set up for objects other than for rendering professional or financial services, including valuation services and that in the case of a company, it is [***] [Omitted 'not' by Notification No. G.S.R. 1108(E), dated 13.11.2018 (w.e.f. 18.10.2017).] a subsidiary, joint venture or associate of another company or body corporate;(b)it is undergoing an insolvency resolution or is an undischarged bankrupt;(c)all the partners or directors, as the case may be, are not ineligible under clauses (c), (d), (e), [(f)] [Inserted by Notification No. G.S.R. 1108(E), dated 13.11.2018 (w.e.f. 18.10.2017).], (g), (h), (i), (j) and (k) of sub-rule (1);(d)three or all the partners or directors, whichever is lower, of the partnership entity or company, as the case may be, are not registered valuers; or(e)none of its partners or directors, as the case may be, is a registered valuer for the asset class, for the valuation of which it seeks to be a registered valuer.
