Well, I had to research on this for few hours.
I produced DBRM on V8 and the indicator was L. I xmitted that to V7 and tried binding that. It was success. I dont know why other people are not able to do that.
I tried changing the indicator to Z -

It said,
DSNT208I -DB2X PROGRAM XXXXXX PRECOMPILED WITH INCORRECT LEVEL FOR
THIS RELEASE
DSNT201I -DB2X BIND FOR PLAN XXXXXX NOT SUCCESSFUL
IBM manuals says that the DBRM'S generated with NEWFUN(NO) on V8 in CM mode can be bound on V7. But i have heard many times that it is not possible. Today i got a chance to try that and it works absolutely fine.