Regulatory Valuations

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.

We may help you in:

• Valuation for issue and transfer of shares and convertible or redeemable instruments of Indian companies under section 56 of the Income Tax Act
• Valuation for determination of Capital Gains tax under section 50CA of the Income Tax Act
• Valuation for Indirect transfer of shares of foreign company where significant business operations lie in India under section 9 of the Income Tax Act
• Valuation of Indian / Foreign Company as per Transfer pricing norms under section 92C of the Income Tax Act
• Valuation for issue of shares and convertible instruments of Indian companies under Companies Act 2013
• Valuation for issue of shares and fully convertible instruments of Indian companies under RBI FDI Regulations
• Valuation for Acquisition / Investment into shares of Foreign companies under RBI ODI Regulations
• Valuation M&A under Section 230-232 of the Companies Act for the purposes of Business Combinations
• Purchase Price Allocation in case of Acquisition of Assets for Financial reporting purposes
• Valuation for preferential allotment and Takeover code as per SEBI Regulations
• Valuations under SEBI Alternate Investment Fund Regulations
• Valuation of Sweat Equity Shares
• Valuation for Assets of Corporate Debtor (Liquidation Value and Fair Value) as per Insolvency & Bankruptcy Code
• Valuations for financial reporting purposes under IND AS (Purchase Price Allocation, Fair Value under IND AS 113, Impairment Assessment under IND AS 36, Financial Instruments under IND AS 109, Ind AS 32 and Ind AS 107 etc.)