Rules 5 and 6 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 5 provides for a valuation examination that tests an individual's professional knowledge, skills, values and ethics. Rule 6 sets out how an eligible individual, partnership entity or company applies to the authority for a certificate of registration, and the periods within which the authority must act. This article reads both 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.
The authority conducts the valuation examination for one or more asset classes, and an individual may take it any number of times. A pass is an acknowledgement, not a licence: the individual must then apply in Form-A, a firm or company in Form-B, with a non-refundable fee of five thousand or ten thousand rupees. If satisfied, the authority grants Form-C within sixty days of receipt, excluding the time it gives the applicant.
Rule 5: the valuation examination
Rule 5(1). The authority conducts the valuation examination, either on its own or through a designated agency, for one or more asset classes. It is for individuals who have the qualifications and experience in rule 4 and who have completed their educational courses as members of a registered valuers organisation. Its purpose is to test their professional knowledge, skills, values and ethics in respect of valuation.
Two provisos widen who can sit:
- The authority may recognise an educational course conducted by a registered valuers organisation before its recognition as adequate for appearing in the examination.
- The authority may recognise an examination conducted as part of a master's or post-graduate degree course conducted by a University which is equivalent to the valuation examination.
Rule 5(2). The authority determines the syllabus for the valuation-specific subjects or asset classes on the recommendation of one or more committees of experts it constitutes.
Rule 5(3). The syllabus, format and frequency of the examination, including qualifying marks, are published on the authority's website at least three months before the examination.
Rule 5(4). An individual who passes receives an acknowledgement of passing.
Rule 5(5). An individual may appear any number of times. The rule sets no cap on attempts.
The link with rule 3 is the period: rule 3(1)(c) requires that the examination was passed within three years preceding the application. Our article on rules 3 and 4 covers that condition.
Rule 6: application for the certificate of registration
Who applies and where
| Applicant | Rule | Form | Non-refundable fee as printed |
|---|---|---|---|
| Individual eligible under rule 3 | 6(1) | Form-A of Annexure II | Five thousand rupees |
| Partnership entity or company eligible under rule 3 | 6(2) | Form-B of Annexure II | Ten thousand rupees |
The fee is payable "in favour of the authority". Form-A is addressed to the authority and is an application for registration as a valuer under section 247 read with rule 6(1), for the asset classes the applicant lists. Form-B is the version for a partnership entity or company, signed by a partner or director duly authorised through a resolution or deed on behalf of the entity and its partners or directors. Annexure II also carries Form-C, the certificate of registration, covered in our article on Annexures I, II, IV and V.
The authority's processing
A company relying on a valuer's registration can have its status checked through financial and legal due diligence before the engagement. The periods the rule prints are below.
| Step | Rule | What happens | Period as printed |
|---|---|---|---|
| Deficiencies | 6(3) | The authority examines the application and may allow time to remove deficiencies | Twenty-one days |
| Additional documents | 6(4) | It may require further documents or clarification | Within twenty-one days |
| Personal appearance | 6(5) | It may require the applicant to appear in person or through an authorised representative | Within twenty-one days |
| Grant | 6(6) | If satisfied after such scrutiny, inspection or inquiry as it deems necessary, it may grant a certificate of registration in Form-C for the relevant asset class or classes | Within sixty days of receipt, excluding the time given for documents, information, clarification or appearance |
| Prima facie refusal | 6(7) | If it thinks registration ought not to be granted, it communicates its reasons | Within forty-five days of receipt, excluding the time given to the applicant |
| Applicant's explanation | 6(8) | The applicant explains why the application should be accepted | Within fifteen days of the communication |
| Decision | 6(9) | After considering the explanation, it either accepts and grants, or rejects by an order giving reasons | None stated in this sub-rule |
| Communication | 6(10) | It communicates its decision | Within thirty days of receipt of the explanation |
Three points about how these periods work together.
- Time given to the applicant does not count. The sixty-day and forty-five-day periods exclude the days the authority gives for removing deficiencies, submitting documents or clarifications, or appearing in person.
- A refusal is not instant. Under rule 6(7) to (9) the authority must first tell the applicant its reasons, the applicant gets fifteen days to respond, and only then does it reject by a reasoned order.
- The rule is silent on some points. It does not say what happens if the authority misses a period, and it does not give an appeal route against a rejection order in rule 6 itself. The text prints nothing on either.
The certificate
The certificate of registration is the document that makes the person a "valuer" for the purposes of the rules. It is granted for the relevant asset class or classes, and rule 7(c) later bars the valuer from valuing any other class; see rules 7, 7A, 9, 10 and 11.
Example
Priya Nair, a chartered accountant with more than three years' experience after membership, completes the course of a registered valuers organisation and passes the examination for securities or financial assets. She applies in Form-A with the five-thousand-rupee fee. On day twelve the authority asks for further documents and gives her twenty-one days. The sixty-day period for grant does not run during those twenty-one days. Had the authority formed a prima facie view against registration, it would have written to her within forty-five days (again excluding her time), and she would have had fifteen days to explain.
Need help with valuer appointments or registrations?
Companies appointing a valuer should confirm that the valuer holds a current certificate for the asset class concerned. We can verify this as part of financial and legal due diligence.
Key takeaways
- The authority conducts the valuation examination; its syllabus, format, frequency and qualifying marks are published at least three months before the examination.
- There is no limit on the number of attempts.
- Individuals apply in Form-A with five thousand rupees; partnership entities and companies apply in Form-B with ten thousand rupees; both fees are non-refundable.
- The authority may give twenty-one days each for deficiencies, documents and appearance.
- Registration is granted in Form-C within sixty days of receipt, excluding the applicant's time.
- Before rejecting, the authority tells the applicant its reasons within forty-five days, and the applicant has fifteen days to reply.
Read next
- Rules 3 and 4: eligibility and qualifications by asset class
- Rules 7, 7A, 9, 10 and 11: conditions, changes, surrender and functions
- Section 247: registered valuers
- Registered valuers: appointment, role and rules
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.