Valuation of Financial Securities, Instruments & Derivatives

    Consult us

    Valuation of Financial Securities, Instruments & Derivatives

    Financial Instruments are contracts for monetary assets that can be purchased, traded, created, modified or settled. There are typically three types of Financial Instruments, cash instruments, derivative instruments and foreign exchange instruments.

    Valuation includes determining the Fair Value of equity instruments, debt instruments, derivatives (option and future contracts) and embedded derivatives (convertible bonds / preference shares). Financial Instruments may require valuation for commercial, financial reporting, Tax or regulatory purposes.

    Transique Valuation Advisors has deep experience with the full range of equity and derivative valuation techniques as per guidance given under IND AS 109, Debt instruments as per Fixed Income Money Market and Derivatives Association of India (FIMMDA) guidelines, including:

    • Closed form Black-Scholes model;
    • Binomial lattice models, customised to capture key features such as early exercise option;
    • Monte Carlo simulations, incorporating performance and/or market conditions and other complexities in the analysis;
    • Back Solve Models to derive the value of common stock benchmarking with the pricing of Preferred stock
    • Option Pricing Models to value Derivatives.

    We can help you in:

    • Equity Instruments valuations
    • Debenture valuations of Non-convertible (NCD’s) Optionally Convertible (OCD’s); Fully Convertible (FCD’s)
    • Options, Warrants, Grants and Rights and other derivatives valuations
    • Hybrid Instruments valuation
    • Financial Liabilities valuation
    • Preferred stock for tax and financial reporting purposes valuation
    • Credit derivatives such as CDS contracts and swap options valuation
    • Valuation of Corporate guarantees