Rules 12 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rules 12 to 14A deal with the registered valuers organisations (RVOs) through which valuers are trained, enrolled and monitored. Rule 12 says which organisations are eligible, rule 13 the application and the authority's decision, rule 14 the conditions that continue after recognition, and rule 14A (2022) the duty to intimate changes. Rule 12(1)(i) was substituted on 1 June 2026. This article reads the rules as amended up to 1 June 2026 (IBBI consolidated text to 22 November 2022 read with G.S.R. 432(E)); later amendments should be checked.
An organisation registered under section 8 of the Companies Act, 2013 (or section 25 of the 1956 Act) can be recognised only if it has a minimum paid-up share capital of twenty-five lakh rupees, the sole object of regulating valuers of an asset class, and bye-laws meeting Annexure III. An RVO below that capital on the date of the 2026 Amendment Rules must comply on or before 31 March 2028. The application is in Form-D with a fee of rupees one lakh.
Rule 12(1): which organisations may be recognised
Rule 12(1) says an organisation that meets the requirements in sub-rule (2) may be recognised as a registered valuers organisation for valuation of a specific asset class or classes if it falls under clause (i) or clause (ii).
Clause (i), as substituted by G.S.R. 432(E) of 1 June 2026
The Companies (Registered Valuers and Valuation) Amendment Rules, 2026, notified on 1 June 2026, substituted clause (i). It now reads:
"(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), having, - (a) a minimum paid-up share capital of twenty-five lakh rupees; (b) the sole object of dealing with matters relating to regulation of valuers of an asset class or asset classes; and (c) bye-laws containing the requirements specified in Annexure-III: Provided that a registered valuer organisation which does not have the specified minimum paid-up capital as on the date of the commencement of the Companies (Registered Valuers and Valuation) Amendment Rules, 2026 shall comply with this requirement on or before 31st March, 2028."
What changed: the earlier clause required only the sole object and the Annexure III bye-laws. The new text adds a minimum paid-up share capital of twenty-five lakh rupees and gives existing RVOs short of that figure until 31 March 2028. Nothing else in the rules was amended in 2026. For a company that is already an RVO, the capital top-up is the immediate question; for a new applicant, it is a threshold condition.
Clause (ii) and the proviso
Clause (ii) covers a professional institute established by an Act of Parliament enacted for the purpose of regulation of a profession. A proviso, subject to sub-rule (3), adds that two other kinds of organisation may also be recognised for a specific asset class or classes: (a) an organisation registered as a society under the Societies Registration Act, 1860 or any relevant state law, and (b) an organisation set up as a trust governed by the Indian Trusts Act, 1882. Under rule 12(3) such an organisation shall convert into, or register itself as, a company under section 8 and include the Annexure III requirements in its bye-laws within one year from the date of commencement of the rules; rule 14(f) gives such an organisation two years.
Rule 12(2): what an organisation must do
The organisation referred to in sub-rule (1) is recognised if it:
| Clause | Requirement |
|---|---|
| (a) | Conducts educational courses in valuation, in accordance with the syllabus the authority determines under rule 5, for individuals who may be its valuer members, in a class room or through distance education, including practical training |
| (b) | Grants membership or a certificate of practice to individuals with the qualifications and experience in rule 4, for the asset class for which it is recognised |
| (c) | Conducts training for individual members before a certificate of practice is issued |
| (d) | Lays down and enforces a code of conduct for its valuer members that includes all provisions in Annexure I |
| (e) | Provides for continuing education of its individual members |
| (f) | Monitors and reviews the functioning, including quality of service, of its valuer members |
| (g) | Has a mechanism to address grievances and conduct disciplinary proceedings against its valuer members |
If you run or plan an organisation of this kind and need to check the fit with these seven requirements and the capital condition, our compliance advisory team can help with the review.
Rule 13: application for recognition
| Sub-rule | What it says |
|---|---|
| 13(1) | An eligible organisation that meets the rule 12 conditions applies to the authority in Form-D of Annexure II, with a non-refundable application fee of rupees one lakh in favour of the authority |
| 13(2) | The authority examines the application and may allow twenty-one days to remove deficiencies |
| 13(3) | It may require additional documents or clarification within twenty-one days |
| 13(4) | It may require the applicant to appear, within twenty-one days, through its authorised representative |
| 13(5) | If satisfied after such scrutiny, inspection or inquiry as it deems necessary, it may grant a certificate of recognition in Form-E of Annexure II |
| 13(6) | If it is of the prima facie opinion that recognition ought not to be granted, it communicates its reasons within forty-five days of receipt, excluding the time given to the applicant |
| 13(7) | The applicant submits an explanation within fifteen days of that communication |
| 13(8) | After considering the explanation, the authority accepts and grants the certificate, or rejects by an order giving reasons |
| 13(9) | It communicates its decision within thirty days of receipt of the explanation |
Unlike rule 6(6), rule 13(5) prints no sixty-day period for the grant itself; the periods it prints are those above.
Rule 14: conditions of recognition
Recognition is subject to these conditions. The RVO shall:
- (a) at all times continue to satisfy the eligibility requirements in rule 12;
- (b) maintain a publicly available register of members who are registered valuers;
- (c) admit only individuals who have the educational qualifications and experience in rule 4 and as specified in its recognition certificate;
- (d) make such reports to the authority as it requires;
- (e) comply with the authority's directions, including on courses under rule 12(2)(a);
- (f) if it is an organisation under the proviso to rule 12(1), be converted or registered as a section 8 company, with the governance structure and bye-laws in Annexure III, within two years from the date of commencement of the rules (the period "two years" was substituted in September 2018);
- (g) if it is an organisation under clause (i) of rule 12(1) existing on the date of commencement, have the governance structure and bye-laws of Annexure III within one year of commencement;
- (h) display on its website the status and specified details of every registered valuer who is its valuer member, including action under rule 17; and
- (i) comply with such other conditions as the authority specifies.
Clause (a) is the link to the 2026 change: because the RVO must "at all times continue to satisfy" rule 12, the capital condition in clause (i) applies after recognition too, subject to the 31 March 2028 proviso for existing RVOs.
Rule 14A: intimation of changes (inserted in 2022)
G.S.R. 831(E) of 21 November 2022 inserted rule 14A. An RVO shall intimate the authority of a change in the composition of its governing board, or its committees or appellate panel, or other details, after payment of the fee as per Table II in Annexure V. The table lists the changes (governing board, chief executive officer or managing director, name, registered office address) and the fee for each; our article on Annexures I, II, IV and V reproduces it as printed.
Example
Sterling Valuation Council is a section 8 company recognised in 2020 with a paid-up share capital below the new minimum. On the date the 2026 Amendment Rules commenced, it did not have twenty-five lakh rupees of paid-up capital. Under the proviso it must reach that figure on or before 31 March 2028 and, under rule 14(a), keep satisfying rule 12 throughout. Later, it changes its chief executive officer. Rule 14A requires it to intimate the authority with the Table II fee.
Need help with an RVO application or its bye-laws?
An organisation seeking recognition, or an existing RVO adjusting to the 2026 capital condition and the Annexure III bye-laws, should review the position before filing. Our team can assist through compliance advisory.
Key takeaways
- Clause (i) of rule 12(1) now requires a section 8 (or section 25) company with a minimum paid-up share capital of twenty-five lakh rupees, a sole object of regulating valuers and Annexure III bye-laws.
- RVOs below the capital on the commencement of the 2026 Amendment Rules have until 31 March 2028.
- Professional institutes qualify under clause (ii); societies and trusts are covered by the proviso, subject to rule 12(3).
- The application is in Form-D with a non-refundable fee of rupees one lakh; recognition is in Form-E.
- Rule 14 conditions include a public register of valuers and a website display of their status.
- Since 22 November 2022 an RVO must intimate changes in its board, committees, appellate panel or other details, with the Table II fee.
Read next
- Annexure III: governance structure and model bye-laws of an RVO
- Rules 15 to 17: cancellation, suspension and complaints
- Rules 7, 7A, 9, 10 and 11: conditions of registration
- Section 8: formation of a company with charitable objects
Disclaimer: Based on the Companies (Registered Valuers and Valuation) Rules, 2017 as consolidated by the Insolvency and Bankruptcy Board of India up to 22 November 2022, read with G.S.R. 432(E) of 1 June 2026 (consulted on 3 October 2026). Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.