Rule 8 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 8 is the working rule of the Registered Valuers Rules. It tells a registered valuer which standards to follow, lets the valuer take inputs from another registered valuer on terms, and lists in twelve clauses what the report must state. This article reads it 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 valuer must comply with the valuation standards notified or modified under rule 18. Until the Central Government notifies standards, valuations are made under internationally accepted valuation standards or standards adopted by a registered valuers organisation. If the valuer takes inputs from another registered valuer, the liability stays with the first valuer. The report must state the items in rule 8(3)(a) to (l), from background and purpose to caveats that do not limit responsibility.
Rule 8(1): the standards to follow
Rule 8(1) says the registered valuer shall, while conducting a valuation, comply with the valuation standards as notified or modified under rule 18. Rule 18 is covered in our article on rules 18 to 21; it empowers the Central Government to notify standards on the recommendation of the Committee under rule 19.
The proviso covers the gap before standards are notified. Until the standards are notified or modified by the Central Government, a valuer shall make valuations as per:
- (a) internationally accepted valuation standards; or
- (b) valuation standards adopted by any registered valuers organisation.
The word "or" at the end of clause (a) was added by G.S.R. 831(E) of 21 November 2022, which replaced "standards;" with "standards; or". The change makes the two clauses alternatives: a valuer may follow either one. The rule does not say which should be preferred.
Rule 8(2): inputs from another registered valuer
The registered valuer may obtain inputs for his valuation report, or get a separate valuation for an asset class conducted from another registered valuer. If so, he must fully disclose the details of the inputs and the particulars of the other registered valuer in his report. The liabilities against the resultant valuation, irrespective of the nature of the inputs or the valuation by the other valuer, remain with the first-mentioned valuer.
In plain terms, a valuer who relies on a colleague's work for part of the assignment may do so, but must name that colleague in the report and cannot pass the responsibility on. If a company needs an asset-class valuation that its valuer is not registered for, rule 7(c) stops the valuer from doing it himself; rule 8(2) lets him obtain it from a registered valuer who is registered for that class, on these terms. Companies that commission valuations can have the engagement terms checked through financial and legal due diligence.
Rule 8(3): what the report must state
Rule 8(3) says "the valuer shall, in his report, state the following". The twelve clauses are below, with a note on what each asks of the valuer.
| Clause | The report must state | What it asks of the valuer |
|---|---|---|
| (a) | Background information of the asset being valued | A description of the asset and the context in which it is valued |
| (b) | Purpose of valuation and appointing authority | Why the valuation is made and who appointed the valuer |
| (c) | Identity of the valuer and any other experts involved | Who did the work, including any expert whose input was used |
| (d) | Disclosure of valuer interest or conflict, if any | Any interest or conflict, stated rather than assumed away |
| (e) | Date of appointment, valuation date and date of report | Three separate dates |
| (f) | Inspections and/or investigations undertaken | What the valuer actually inspected or investigated |
| (g) | Nature and sources of the information used or relied upon | What data was used and where it came from |
| (h) | Procedures adopted in carrying out the valuation and valuation standards followed | The method and the standards under rule 8(1) |
| (i) | Restrictions on use of the report, if any | Who may use the report and for what |
| (j) | Major factors that were taken into account during the valuation | The factors that drove the number |
| (k) | Conclusion | The valuer's conclusion |
| (l) | Caveats, limitations and disclaimers | Allowed only to the extent they explain or elucidate the limitations faced by the valuer, and not for the purpose of limiting responsibility for the report |
Clause (l) is worth reading twice. A report may carry caveats and limitations, but they are there to explain the limits the valuer faced, not to reduce the valuer's responsibility for the report. A blanket disclaimer of liability does not satisfy the clause. Our practice note on scope limitations that are not disclaimers gives illustrations.
Clause (e) asks for three dates, not one, because the date of appointment, the valuation date and the date of the report can be different. Our note on the valuation date as the anchor of the engagement looks at this clause, and our note on disclosure categories under rule 8(3) looks at the wider list.
Rule 8(3) is a minimum list of what the report states. Other laws or regulators may call for more items; the rule does not address them.
How rule 8 connects to the other rules
| Rule 8 point | Where it connects |
|---|---|
| Standards under rule 8(1) | Notified under rule 18 on the Committee's recommendation under rule 19 |
| Code of conduct | Annexure I requires disclosure of conflicts, written records and independence |
| Records | Rule 7(f): records of each assignment for at least three years |
| False or misleading statements in a report | Rule 21 makes the person liable under section 448 |
Our article on rules 7, 7A, 9, 10 and 11 covers the conditions of registration that run alongside rule 8.
Example
Orchid Components Private Limited engages a registered valuer, Karan Bedi, to value its machinery for a transaction under the Companies Act, 2013. Karan asks another registered valuer for a separate valuation of a block of imported equipment. His report names the second valuer and the inputs taken, states the date of appointment, the valuation date and the report date, lists the plant inspections made, and includes a limitation that the maintenance records for one line were not produced. That limitation explains a constraint; it does not say that Karan takes no responsibility for the report. If the second valuer's input turns out to be wrong, the liability for the resultant valuation still remains with Karan under rule 8(2).
Need help reviewing a valuation report?
A company relying on a valuation should check that the report states each item in rule 8(3) and that the standards followed are named. Our team can review reports as part of financial and legal due diligence.
Key takeaways
- The valuer follows the valuation standards notified or modified under rule 18.
- Until standards are notified, either internationally accepted standards or standards adopted by a registered valuers organisation may be followed.
- A valuer who takes inputs from another registered valuer must disclose the details and remains liable.
- The report states twelve items, (a) to (l), including three dates, conflicts, sources, procedures and standards.
- Caveats are allowed to explain limitations; they must not limit the valuer's responsibility for the report.
Read next
- Rules 18 to 21: valuation standards, the committee and punishment
- Rules 7, 7A, 9, 10 and 11: conditions of registration
- Disclosure categories under rule 8(3) and beyond the minimum
- Section 247: registered valuers
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.