Regulatory Valuations are required under Companies Act, Income Tax Act, FEMA, SEBI Regulations, Insolvency & Bankruptcy Code, IND-AS (Financial Reporting).
Different regulators in India have prescribed different, and at some places even contradictory, valuation requirements to be applied in specific situations. In addition to applicable laws & regulations, more recently, some regulators have also prescribed valuation to be conducted as per internationally accepted valuation guidelines. Some regulators have put in additional requirement of following with international valuation standards. Despite being highly regulated, there are also certain situations wherein t valuation is required but no valuation methodology is prescribed by any regulator or under applicable law and same is left to the judgement of the valuer.
Apart from valuation methodology, the eligibility to perform valuations also varies under different regulations wherein chartered accountants and/or SEBI-registered merchant bankers and w.e.f. 1 February 2019 Registered Valuers can conduct Valuations in India. However, under the applicable provisions of the Companies Act, 2013, The Insolvency and Bankruptcy Code and SEBI ICDR Regulations, 2018 and SEBI (REIT and InvIT) Regulations, 2016 it is mandatory to get the Valuations done from a Registered Valuer only.
Regulatory environment is becoming increasingly complicated and specially M&A Transactions are rigorously scrutinized by Tax and other regulatory authorities in India and worldwide. Many Regulations now stipulate that a valuation is required before implementation of Transaction.
Transique Valuation Advisors helps companies to navigate this environment of changing laws and regulations by offering skilled expertise for forming strategy and defending valuation positions by working in closely with Companies’ Board and Management and their tax and legal advisors to provide valuations services required under various laws and regulations.
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