Rules 7 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.
Once the authority grants a certificate of registration, the valuer holds it on conditions. Rule 7 lists them, rule 7A (added in 2022) requires the valuer to intimate certain changes, rule 9 lets a valuer surrender registration temporarily, rule 10 states the valuer's function, and rule 11 was the transitional arrangement. 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.
A registered valuer must always meet the eligibility and qualification tests, follow the Act, the rules and the organisation's bye-laws, value only the asset classes for which registered, keep records of each assignment for at least three years, and follow the Annexure I code of conduct. Since 22 November 2022 changes in personal details, partners or directors, or the partnership deed or Memorandum must be intimated to the authority with the fee under Annexure V. The transition ended on 31 January 2019.
Rule 7: conditions of registration
Rule 7 says the registration under rule 6 is subject to the conditions that the valuer shall do the following. The first group applies to every valuer.
| Clause | Condition |
|---|---|
| (a) | At all times possess the eligibility, qualification and experience criteria in rules 3 and 4 |
| (b) | At all times comply with the Act, these rules and the bye-laws or internal regulations of the registered valuers organisation |
| (c) | In his capacity as a registered valuer, not value assets or classes of assets other than those for which he or it has been registered |
| (d) | Take the authority's prior permission for shifting membership from one organisation to another |
| (e) | Take adequate steps for redressal of grievances |
| (f) | Maintain records of each assignment for at least three years from its completion |
| (g) | Comply with the Code of Conduct in Annexure I of the organisation of which he is a member |
| (m) | Comply with such other conditions as the authority imposes |
The second group applies where a partnership entity or company is the registered valuer.
| Clause | Condition |
|---|---|
| (h) | Allow only the partner or director who is a registered valuer for the asset class being valued to sign and act on its behalf |
| (i) | Disclose to the company concerned the extent of capital employed or contributed in the entity by the partner or director who would sign and act on the assignment |
| (j) | Partnership entity: be liable jointly and severally with the partner who signs and acts |
| (k) | Company: be liable along with the director who signs and acts |
| (l) | Immediately inform the authority on the removal of a partner or director who is a registered valuer, with detailed reasons |
Valuer firms that want these conditions tracked through the year can use our compliance advisory support. Three practical points follow. Clause (c) is the asset-class limit: a registration for land and building does not authorise a valuation of securities. Clause (d) means a valuer cannot simply move between organisations; prior permission is needed. And clauses (j) and (k) mean the entity's liability does not shield the individual who signs, or the other way round.
Our article on Annexures I, II, IV and V sets out the code of conduct that clause (g) refers to.
Rule 7A: intimation of changes (inserted in 2022)
G.S.R. 831(E) of 21 November 2022 inserted rule 7A. It says a registered valuer shall intimate the authority of:
- a change in personal details;
- 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, after paying the fee as per Table I in Annexure V. The fee is set by the type of change and by whether the valuer is an individual or an entity; the table is reproduced in our article on the Annexures. Rule 7A applies alongside rule 7(l): the removal of a partner or director who is a registered valuer must be informed to the authority immediately, with reasons, and the change in composition is also an intimation under rule 7A.
Rule 9: temporary surrender
Rule 9(1). A registered valuer may temporarily surrender his registration certificate in accordance with the bye-laws or regulations of the registered valuers organisation. On surrender, the valuer informs the authority so that it can take the information on record.
Rule 9(2). The organisation must inform the authority if a valuer member has temporarily surrendered, or revived, membership not later than seven days from approval of the application for surrender or revival.
Rule 9(3). Every organisation places on its website, in a searchable format, the names and other details of valuer members who have surrendered or revived their memberships.
The bye-laws side of temporary surrender (the thirty-day notice, the occasions on which it is allowed and the cases where it is refused) is in Annexure III, covered in our article on the model bye-laws of an RVO.
Rule 10: functions of a valuer
Rule 10 is short: a valuer shall conduct valuation required under the Act as per these rules. In November 2018 the words after "these rules", which had said that he may also conduct valuation as per these rules if required under any other law or by any other regulator, were omitted. The scope question is now dealt with by rule 1(3) and its Explanation; see rules 1 and 2.
Rule 11: the transitional arrangement
Rule 11 let a person already rendering valuation services under the Act on the date of commencement continue without a certificate of registration up to 31 January 2019 (the third 2018 amendment substituted that date). Its proviso said that if a company had appointed a valuer before that date and the valuation, or any part of it, had not been completed before 31 January 2019, the valuer was to complete it within three months thereafter.
Those dates have passed. Rule 11 is now of historical value, relevant mainly to a very old assignment. The rules otherwise draw no conclusion about any particular past valuation, and neither does this article.
Example
Greenfield Valuers Private Limited is a registered valuer company for land and building. Its director Meera Joshi, a registered valuer for that class, signs the report for a client. A month later the company removes another director, who was also a registered valuer, and amends its Memorandum. Rule 7(l) requires it to tell the authority immediately, with detailed reasons, about the removal. Rule 7A requires it to intimate the change in the composition of directors and the Memorandum change, with the Annexure V fee. Rule 7(h) means that when the client next asks for a valuation of shares, Meera cannot sign it unless she is also registered for that asset class.
Need help keeping a valuer entity compliant?
Registered valuer firms and companies carry continuing conditions: records, signatories, intimations and fees. Our team can support these through compliance advisory.
Key takeaways
- Rule 7 lists thirteen conditions, (a) to (m); clauses (h) to (l) apply to partnership entities and companies.
- A valuer may value only the asset classes for which he or it is registered.
- Prior permission of the authority is needed before shifting membership between organisations.
- Records of each assignment are kept for at least three years from completion.
- Since 22 November 2022 changes in personal details, partners or directors and the constitutional documents must be intimated, with the Annexure V fee.
- Temporary surrender is under the organisation's bye-laws; the organisation informs the authority within seven days of approval.
- The rule 11 transition ended on 31 January 2019.
Read next
- Rules 5 and 6: the valuation examination and applying for registration
- Rule 8: how a valuation is conducted
- Section 247: registered valuers
- Annexures I, II, IV and V: code of conduct, forms, qualifications and fees
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.