Rules 3 and 4 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.
Rule 3 lists who may be registered as a valuer: individuals under sub-rule (1) and partnership entities or companies under sub-rule (2). Rule 4 fixes the minimum qualifications and experience. This article reads them 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 individual must be a valuer member of a registered valuers organisation, be recommended by it, have passed the valuation examination within three years before applying, hold the qualifications in rule 4, and meet the personal tests in rule 3(1)(e) to (k). A partnership entity or company is barred if any of the conditions in rule 3(2)(a) to (f) applies, and since 22 November 2022 it must itself be a member of a registered valuers organisation, and of only one.
Rule 3(1): the individual valuer
Rule 3(1) says a person is eligible to be a registered valuer if he meets all eleven conditions, (a) to (k). They fall into three groups.
Membership and examination
- (a) Valuer member. He is a valuer member of a registered valuers organisation. The Explanation says a "valuer member" is a member of the organisation who possesses the requisite educational qualifications and experience for being registered as a valuer.
- (b) Recommendation. The organisation of which he is a valuer member recommends him for registration.
- (c) Examination. He has passed the valuation examination under rule 5 within three years preceding the date of making an application under rule 6.
- (d) Qualifications. He has the qualifications and experience specified in rule 4.
Personal tests
- (e) Not a minor.
- (f) Not of unsound mind. He has not been declared to be of unsound mind.
- (g) Not bankrupt. He is not an undischarged bankrupt and has not applied to be adjudicated as a bankrupt.
- (h) Resident in India. The Explanation gives "person resident in India" the meaning in clause (v) of section 2 of the Foreign Exchange Management Act, 1999, as far as it applies to an individual.
Record tests
- (i) Convictions. He has not been convicted by a competent court for an offence punishable with imprisonment for a term exceeding six months, or for an offence involving moral turpitude, and five years have not elapsed from the expiry of the sentence. The proviso adds that if a person has been convicted and sentenced to imprisonment for seven years or more, he shall not be eligible to be registered.
- (j) Penalty under the income-tax law. He has not been levied a penalty under section 271J of the Income-tax Act, 1961 whose appeal time has expired (or which has been confirmed by the Appellate Tribunal) with five years not yet elapsed after the levy. For the tax side, see our income-tax guides.
- (k) Fit and proper person. The Explanation lets the authority take account of any relevant consideration, including integrity, reputation and character, absence of convictions and restraint orders, and competence and financial solvency.
A company that is about to appoint a valuer can have these points checked first through our financial and legal due diligence service. Because clause (c) ties eligibility to a recent examination, a candidate whose pass is older than three years at the time of the application would need to take the examination again; rules 5 and 6 explain the examination and the application.
Rule 3(2): partnership entities and companies
Rule 3(2) works in the negative: "No partnership entity or company shall be eligible to be a registered valuer if" any of these applies.
| Clause | Bar |
|---|---|
| (a) | It was set up for objects other than rendering professional or financial services, including valuation services, and, in the case of a company, it is 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 eligible under clauses (c), (d), (e), (f), (g), (h), (i), (j) and (k) of sub-rule (1) |
| (d) | Three, or all, of its partners or directors, whichever is lower, are not registered valuers |
| (e) | None of its partners or directors is a registered valuer for the asset class for which it seeks to be a registered valuer |
| (f) | It is not a member of a registered valuers organisation (with two provisos below) |
Clause (a) was changed in November 2018, when the word "not" before "a subsidiary" was omitted and clause (c) was widened to take in clause (f) of sub-rule (1). Clause (f) was added by the 2022 amendment.
What the 2022 amendment changed
G.S.R. 831(E) of 21 November 2022 made two changes in rule 3(2).
- In clause (c), the word "ineligible" was replaced by "eligible". Clause (c) now reads as printed in the table above.
- A new clause (f) was inserted. An entity that is not a member of a registered valuers organisation is barred. The first proviso says it shall not be a member of more than one such organisation at a given point of time. The second proviso says a partnership entity or company already registered as a valuer on the date of commencement of the 2022 Amendment Rules had to comply with the clause within six months of that commencement.
In practice, an entity must therefore hold membership of one organisation, and not several. A group that holds memberships in two organisations has to choose one.
Rule 4: qualifications and experience
Rule 4 applies to an individual. To be eligible for registration under rule 3 he must have one of the following:
| Route | Qualification | Experience |
|---|---|---|
| (a) | Post-graduate degree or post-graduate diploma in the specified discipline from a University or Institute established, recognised or incorporated by law in India | At least three years in the specified discipline thereafter |
| (b) | Bachelor's degree or equivalent in the specified discipline from such a University or Institute | At least five years in the specified discipline thereafter |
| (c) | Membership of a professional institute established by an Act of Parliament for the regulation of a profession | At least three years after such membership |
There are three Explanations.
- Explanation I. The "specified discipline" is the discipline relevant for valuation of the asset class for which registration as a valuer, or recognition as a registered valuers organisation, is sought.
- Explanation II. Qualifying education and experience for various asset classes is given in an indicative manner in Annexure IV. Our article on Annexures I, II, IV and V sets out the table, including the note added in 2022 on engineering nomenclature.
- Explanation III. For rule 4 and Annexure IV, "equivalent" means professional and technical qualifications recognised by the Ministry of Human Resources and Development as equivalent to a professional or technical degree.
Clause (c) used to end with the words "and having qualification mentioned at clause (a) or (b)"; the 2018 amendment omitted them, so a professional member needs only the membership and three years' experience.
Example
Arjun Rao is a civil engineer with a bachelor's degree and six years' experience in the field, and a valuer member of an organisation recognised for land and building. He passed the valuation examination in 2024 and applies in 2026. Under rule 4(b) he has the five years the bachelor's route requires. Rule 3(1)(c) is met only if the pass is within three years before the application, so he should check the dates before applying. His wife's firm, Rao Associates LLP, wants to register as well. It must be a member of one organisation only, and at least three of its partners (or all, if fewer than three) must be registered valuers.
Need help with valuer eligibility or an engagement?
Companies choosing a registered valuer should confirm that the person or entity is eligible for the relevant asset class before the engagement. Our team can review this as part of financial and legal due diligence.
Key takeaways
- An individual needs membership of an organisation, its recommendation, a pass in the valuation examination within three years, and the rule 4 qualifications.
- The personal tests cover age, mind, bankruptcy, residence, convictions, a penalty under the income-tax law and being a fit and proper person.
- A convicted person sentenced to seven years or more cannot be registered.
- A partnership entity or company is barred by any condition in rule 3(2)(a) to (f).
- Since 22 November 2022 an entity must be a member of one registered valuers organisation, and only one.
- Rule 4 offers three routes: post-graduate with three years, bachelor's with five years, or professional membership with three years.
Read next
- Rules 1 and 2: application and definitions
- Rules 5 and 6: the valuation examination and applying for registration
- Section 247: registered valuers
- Registered valuer under the Companies Act, 2013: IBBI registration, scope and liability
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.