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Chapter III Recognition of Registered Valuers Organisations 12. Eligibility for registered valuers organisations.— (1) An organisation that meets requirements under sub-rule (2) may be recognised as a registered valuers organisation for valuation of a specific asset class or asset classes if — (i) it has been registered under section 25 of the Companies Act, 1956 (1 of 1956) or section 8 of the Companies Act, 2013 (18 of 2013) with the sole object of dealing with matters relating to regulation of valuers of an asset class or asset classes and has in its bye laws the requirements specified in Annexure-III; (ii) 1[It is a professional institute] established by an Act of Parliament enacted for the purpose of regulation of a profession; Provided that, subject to sub-rule (3), the following organisations may also be recognised as a registered valuers organisation for valuation of a specific asset class or asset classes, namely:- (a) an organisation registered as a society under the Societies Registration Act, 1860 (21 of 1860) or any relevant state law, or; (b) an organisation set up as a trust governed by the Indian Trust Act, 1882 (2 of 1882). (2) The organisation referred to in sub-rule (1) shall be recognised if it — (a) conducts educational courses in valuation, in accordance with the syllabus determined by the authority, under rule 5, for individuals who may be its valuers members, and delivered in class room or through distance education modules and which includes practical training; (b) grants membership or certificate of practice to individuals, who possess the qualifications and experience as specified in rule 4, in respect of valuation of asset class for which it is recognised as a registered valuers organisation ; (c) conducts training for the individual members before a certificate of practice is issued to them; (d) lays down and enforces a code of conduct for valuers who are its members, which includes all the provisions specified in Annexure-I; (e) provides for continuing education of individuals who are its members; (f) monitors and reviews the functioning, including quality of service, of valuers who are its members; and (g) has a mechanism to address grievances and conduct disciplinary proceedings against valuers who are its members. (3) A registered valuers organisation, being an entity under proviso to sub-rule (1), shall convert into or register itself as a company under section 8 of the Companies Act, 2013 (18 of 2013), and include in its bye laws the requirements specified in Annexure- III, within one year from the date of commencement of these rules. Amendment 1. Substituted by the Companies (Registered Valuers and Valuation) Fourth Amendment Rules, 2018, w.e.f. 13-11-2018. in Rule 12, sub-rule (1) for clause (ii) for the words, “a professional institute” the following shall be substituted namely, It is a professional institute
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