Corporate & Economic Laws (Law) Amendments | CA Final | November 2023

Sr. No.

Provisions

Module 2 – Chapter 10: Miscellaneous Provisions

A. Earlier Provision: In terms of Sub-rule (2) of Rule 3 of the Companies (Registered Valuers and Valuation) Rules, 2017, ‘No partnership entity or company shall be eligible to be a registered valuer if –

(c) all the partners or directors, as the case may be, are not ineligible under clauses (c), (d), (e), (f), (g), (h), (i), (j) and (k) of sub-rule (1).

(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.’

Amended Provision: Sub-rule (2) of Rule 3 –

(i) in clause (c), for the word “ineligible”, the word “eligible” shall be substituted;

(ii) after clause (e), the following clause shall be inserted, namely: –

“(f) it is not a member of a registered valuers organisation:

Provided that it shall not be a member of more than one such registered valuer’s organisation at a given point of time:

Provided further that the partnership entity or company, already registered as valuers, on the date of commencement of the Companies (Registered Valuers and Valuation) Amendment Rules, 2022, shall comply within six months of such commencement with the conditions specified under this clause.”

B. Earlier Provision: As per Rule 8 of the Companies (Registered Valuers and Valuation) Rules, 2017,

(1) The registered valuer shall, while conducting a valuation, comply with the valuation standards as notified or modified under rule 18:

Provided that until the valuation standards are notified or modified by the Central Government, a valuer shall make valuations as per-

a) Internationally accepted valuation standards;

b) Valuation standards adopted by any registered valuer’s organisation.

Amended Provision: In the proviso to Rule 8 –

For the words, “standards;”, the words, “standards; or” shall be substituted.

“A registered valuer shall intimate the authority for change in the personal details, or any modification in the composition of partners or directors, or any modification in any clause of the partnership agreement or Memorandum of Association, which may affect registration of registered valuer, after paying fee as per the Table-I in Annexure V.”

Module 2 – Chapter 9: Companies incorporated outside India

Earlier Provision: Clause (c) in sub-rule (2) of rule 3 of Companies (Registration of Foreign Companies) Rules, 2014 reads as under:

(c) father’s name or mother’s name and spouse’s name;

Amended Provision: Clause (c) in sub-rule (2) of rule 3-

“(c) father’s name or mother’s name or spouse’s name;”

Module 3 – Chapter 3: The Prevention of Money Laundering Act, 2002

(iii) real estate agent, as may be notified by the Central Government;

Notification: Central Government vide Notification No. G.S.R. 855(E) dated 29^th November, 2022 notified ‘real estate agents’ as defined under clause (zm) of section 2 of the Real Estate (Regulation and Development) Act, 2016 and a person engaged in providing services in relation to sale or purchase of real estate and having annual turnover of Rupees twenty lakhs and above, as a “person carrying on designated business or profession”.

(vi) person carrying on such other activities as the Central Government may, by notification, so designate, from time to time;

Notification: Central Government vide Notification No. S.O. 1072(E) dated 7^th March, 2023 notified the following activities when carried out for or on behalf of another natural or legal person in the course of business as an activity for the purposes of said sub sub-clause, namely: —

(i) exchange between virtual digital assets and fiat currencies;

(ii) exchange between one or more forms of virtual digital assets;

(iii) transfer of virtual digital assets;

(iv) safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets; and

(v) participation in and provision of financial services related to an issuer’s offer and sale of a virtual digital asset.

Explanation: — For the purposes of this notification “virtual digital asset” shall have the same meaning assigned to it in clause (47A) of section 2 of the Income-tax Act, 1961.