Four years after draft rules were issued, India’s Ministry of Corporate Affairs (MCA) has announced finalized rules on the valuation of unlisted companies. Until now, there have been valuation guidelines for listed companies from the Securities and Exchange Board of India (Sebi), so these new regulations mean that India will have valuation rules for all firms.

The rules do not address valuation methodologies, so international standards will be followed pending the development of guidelines on methodology. The rules do address who can become registered valuers and the extent of the oversight by the Insolvency and Bankruptcy Board of India (IBBI). Unregistered valuers can continue to work until March 31, 2018. The IBBI is the authority responsible for these regulations, known as the Companies (Registered Valuers and Valuation) Rules, 2017. A disciplinary committee will be set up to hear complaints against registered valuers. More details on the rules can be found here.