{"id":25161,"date":"2023-07-26T11:54:51","date_gmt":"2023-07-26T06:24:51","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=25161"},"modified":"2025-11-24T21:47:59","modified_gmt":"2025-11-24T16:17:59","slug":"valuation-needed-registered-valuer-of-financial-assets","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/","title":{"rendered":"Valuation Needed -Registered Valuer of Financial Assets"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d018d3b2438\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d018d3b2438\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#Valuation_requirements_in_case_of_Registered_Valuer_of_Financial_Assets_in_India\" title=\"Valuation requirements in case of Registered Valuer of Financial Assets in India\">Valuation requirements in case of Registered Valuer of Financial Assets in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#NEW_OPPORTUNITY_FOR_REGISTERED_VALUERS_UNDER_THE_INCOME_TAX_ACT_1961\" title=\"NEW OPPORTUNITY FOR REGISTERED VALUERS UNDER THE INCOME TAX ACT 1961\">NEW OPPORTUNITY FOR REGISTERED VALUERS UNDER THE INCOME TAX ACT 1961<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#Overview_of_valuation_requirements_under_various_Indian_laws_and_regulations\" title=\"Overview of valuation requirements under various Indian laws and regulations\">Overview of valuation requirements under various Indian laws and regulations<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#1_Valuation_Requirements_Across_Laws\" title=\"1. Valuation Requirements Across Laws\">1. Valuation Requirements Across Laws<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#Purposes_of_Valuation\" title=\"Purposes of Valuation:\">Purposes of Valuation:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#2_Under_Companies_Act_2013\" title=\"2. Under Companies Act, 2013\">2. Under Companies Act, 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#3_Under_Insolvency_and_Bankruptcy_Code_IBC_2016\" title=\"3. Under Insolvency and Bankruptcy Code (IBC), 2016\">3. Under Insolvency and Bankruptcy Code (IBC), 2016<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#4_Under_Indian_Accounting_Standards_Ind_AS\" title=\"4. Under Indian Accounting Standards (Ind AS)\">4. Under Indian Accounting Standards (Ind AS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#5_Under_FEMA_FDIODI_Master_Directions\" title=\"5. Under FEMA (FDI\/ODI Master Directions)\">5. Under FEMA (FDI\/ODI Master Directions)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#6_Under_Income_Tax_Act_1961\" title=\"6. Under Income Tax Act, 1961\">6. Under Income Tax Act, 1961<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#7_Under_SEBI_Regulations\" title=\"7. Under SEBI Regulations\">7. Under SEBI Regulations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/valuation-needed-registered-valuer-of-financial-assets\/#Rajput_Jain_and_Associates_Specialize_IBC_advisory_services\" title=\"Rajput Jain and Associates, Specialize IBC advisory services \">Rajput Jain and Associates, Specialize IBC advisory services <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span style=\"color: #000080;\"><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22246\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/04\/Business-Valuation.jpg\" alt=\"Business Valuations Helps you to Move in the Desired Direction\" width=\"1106\" height=\"733\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/04\/Business-Valuation.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/04\/Business-Valuation-300x199.jpg 300w\" sizes=\"(max-width: 1106px) 100vw, 1106px\" \/><\/strong><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Valuation_requirements_in_case_of_Registered_Valuer_of_Financial_Assets_in_India\"><\/span><span style=\"color: #000080;\"><strong>Valuation requirements in case of Registered Valuer of Financial Assets in India<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A Valuation report in respect of shares, property or assets, tangible and intangible, movable and immovable, of the company must be prepared by a Registered Valuer in case or instance of a compromise or agreement between members (such as in mergers or amalgamations) or with creditors (such as in corporate debt restructuring),<\/p>\n<p class=\"elementToProof\">As a Registered Valuer of Financial Assets in India, Share valuable information on the key valuation requirements under the Companies Act 2013 in India. This comprehensive summary aims to raise awareness about our services related to the valuation of financial assets.<\/p>\n<p>Overview of the valuation requirements, including reference points, activities, and trigger points for each valuation:<\/p>\n<table class=\"x_Table\" style=\"height: 2372px;\" width=\"1087\">\n<tbody>\n<tr>\n<td valign=\"top\">\n<p align=\"center\"><span lang=\"EN-IN\">Serial No.<\/span><\/p>\n<\/td>\n<td valign=\"top\">\n<p align=\"center\"><span lang=\"EN-IN\">Reference<\/span><\/p>\n<\/td>\n<td valign=\"top\">\n<p align=\"center\"><span lang=\"EN-IN\">Activity<\/span><\/p>\n<\/td>\n<td valign=\"top\">\n<p align=\"center\"><span lang=\"EN-IN\">Trigger Point of Valuation<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">1.<\/span><\/td>\n<td><span lang=\"EN-IN\">Section 8 read with<\/span><\/p>\n<p><span lang=\"EN-IN\">Rule 21 and 22<\/span><\/p>\n<p><span lang=\"EN-IN\">of the Companies<\/span><\/p>\n<p><span lang=\"EN-IN\">(Incorporation)<\/span><\/p>\n<p><span lang=\"EN-IN\">Rules, 2014<\/span><\/td>\n<td><b><span lang=\"EN-IN\">Valuation of assets of <\/span><\/b><b><span lang=\"EN-IN\">a Section 8 Company <\/span><\/b><b><span lang=\"EN-IN\">when it is to be <\/span><\/b><b><span lang=\"EN-IN\">converted into any <\/span><\/b><b><span lang=\"EN-IN\">other type of company<\/span><\/b><\/td>\n<td><span lang=\"EN-IN\">Before filing for <\/span><span lang=\"EN-IN\">such conversion<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">2.<\/span><\/td>\n<td><span lang=\"EN-IN\">Section 39 read <\/span><span lang=\"EN-IN\">with Rule 12(5) <\/span><span lang=\"EN-IN\">of the Companies <\/span><span lang=\"EN-IN\">(Prospectus and <\/span><span lang=\"EN-IN\">Allotment of <\/span><span lang=\"EN-IN\">Securities) Rules, <\/span><span lang=\"EN-IN\">2014<\/span><\/td>\n<td><b><span lang=\"EN-IN\">Issue of shares <\/span><\/b><b><span lang=\"EN-IN\">for consideration <\/span><\/b><b><span lang=\"EN-IN\">other than cash <\/span><\/b><b><span lang=\"EN-IN\">&#8211; requirement for <\/span><\/b><b><span lang=\"EN-IN\">valuation of the <\/span><\/b><b><span lang=\"EN-IN\">consideration<\/span><\/b><\/td>\n<td><span lang=\"EN-IN\">When filing <\/span><span lang=\"EN-IN\">the return <\/span><span lang=\"EN-IN\">of allotment <\/span><span lang=\"EN-IN\">for issue of <\/span><span lang=\"EN-IN\">shares for <\/span><span lang=\"EN-IN\">consideration <\/span><span lang=\"EN-IN\">other than cash<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">3.<\/span><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Section 54 read <\/span><span lang=\"EN-IN\">with Rule 8(6) of <\/span><span lang=\"EN-IN\">the Companies <\/span><span lang=\"EN-IN\">(Share Capital) <\/span><span lang=\"EN-IN\">Rules, 2014<\/span><\/td>\n<td valign=\"top\"><b><span lang=\"EN-IN\">Fair price justification <\/span><\/b><b><span lang=\"EN-IN\">for issue of sweat <\/span><\/b><b><span lang=\"EN-IN\">equity shares<\/span><\/b><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Before the <\/span><span lang=\"EN-IN\">approval of <\/span><span lang=\"EN-IN\">issue of sweat <\/span><span lang=\"EN-IN\">equity shares<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">4.<\/span><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Section 54 read <\/span><span lang=\"EN-IN\">with Rule 8(7) of <\/span><span lang=\"EN-IN\">the Companies <\/span><span lang=\"EN-IN\">(Share Capital) <\/span><span lang=\"EN-IN\">Rules, 2014<\/span><\/td>\n<td valign=\"top\"><b><span lang=\"EN-IN\">Valuation of IP \/ know <\/span><\/b><b><span lang=\"EN-IN\">how acquired by issue <\/span><\/b><b><span lang=\"EN-IN\">of sweat equity shares <\/span><\/b><b><span lang=\"EN-IN\">to be valued<\/span><\/b><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Before the <\/span><span lang=\"EN-IN\">approval of <\/span><span lang=\"EN-IN\">issue of sweat <\/span><span lang=\"EN-IN\">equity shares<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">5.<\/span><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Section 62(1)<\/span><span lang=\"EN-IN\">(c) read with <\/span><span lang=\"EN-IN\">Rule 13(1) of <\/span><span lang=\"EN-IN\">the Companies <\/span><span lang=\"EN-IN\">(Share Capital and <\/span><span lang=\"EN-IN\">Debentures) Rules, <\/span><span lang=\"EN-IN\">2014.<\/span><\/td>\n<td valign=\"top\"><b><span lang=\"EN-IN\">Share issue (other <\/span><\/b><b><span lang=\"EN-IN\">than rights and ESOP)<\/span><\/b><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Before pricing <\/span><span lang=\"EN-IN\">the issue<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">6.<\/span><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Section 67(3) read <\/span><span lang=\"EN-IN\">with Rule 16(1)(c) <\/span><span lang=\"EN-IN\">of the Companies<\/span><span lang=\"EN-IN\">(Share Capital and <\/span><span lang=\"EN-IN\">Debentures) Rules, <\/span><span lang=\"EN-IN\">2014<\/span><\/td>\n<td valign=\"top\"><b><span lang=\"EN-IN\">Determination of price <\/span><\/b><b><span lang=\"EN-IN\">of issue by an unlisted <\/span><\/b><b><span lang=\"EN-IN\">entity when shares are <\/span><\/b><b><span lang=\"EN-IN\">issued to employees<\/span><\/b><b><span lang=\"EN-IN\">\/ trust to which the <\/span><\/b><b><span lang=\"EN-IN\">company is providing <\/span><\/b><b><span lang=\"EN-IN\">loan for such purchase<\/span><\/b><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Before the <\/span><span lang=\"EN-IN\">approval of the <\/span><span lang=\"EN-IN\">transaction<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">7.<\/span><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Section 73 read <\/span><span lang=\"EN-IN\">with Rule 2(ix) of <\/span><span lang=\"EN-IN\">the Companies<\/span><span lang=\"EN-IN\">(Acceptance of <\/span><span lang=\"EN-IN\">Deposits) Rules, <\/span><span lang=\"EN-IN\">2014<\/span><\/td>\n<td valign=\"top\"><b><span lang=\"EN-IN\">To determine that <\/span><\/b><b><span lang=\"EN-IN\">bonds \/debentures <\/span><\/b><b><span lang=\"EN-IN\">issued are secured <\/span><\/b><b><span lang=\"EN-IN\">(and hence not a<\/span><\/b><b><span lang=\"EN-IN\">deposit), valuation of <\/span><\/b><b><span lang=\"EN-IN\">the assets provided as <\/span><\/b><b><span lang=\"EN-IN\">security<\/span><\/b><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Before the issue <\/span><span lang=\"EN-IN\">of such bonds \/<\/span><span lang=\"EN-IN\">debentures<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">8.<\/span><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Section 230(2) and\u00a0<\/span><span lang=\"EN-IN\">Section 230(3) of Companies Act 2013<\/span><\/td>\n<td valign=\"top\"><b><span lang=\"EN-IN\">Filing of a compromise <\/span><\/b><b><span lang=\"EN-IN\">or arrangement <\/span><\/b><b><span lang=\"EN-IN\">amongst creditors \/ <\/span><\/b><b><span lang=\"EN-IN\">shareholders<\/span><\/b><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Before the filing of application.<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">9.<\/span><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Section 232 of\u00a0 Companies Act 2013<\/span><\/td>\n<td valign=\"top\"><b><span lang=\"EN-IN\">Mergers and amalgamations<\/span><\/b><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">When Board <\/span><span lang=\"EN-IN\">places them <\/span><span lang=\"EN-IN\">report to the <\/span><span lang=\"EN-IN\">members<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">10.<\/span><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Section 236 of\u00a0 Companies Act 2013<\/span><\/td>\n<td valign=\"top\"><b><span lang=\"EN-IN\">Acquisition of minority stake by these holding 90 % or more.<\/span><\/b><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Before making such offer for the buyout of the shares from the minority holders<\/span><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><span lang=\"EN-IN\">11.<\/span><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Section 281(1)(a) of\u00a0 Companies Act 2013<\/span><\/td>\n<td valign=\"top\"><b><span lang=\"EN-IN\">Valuation of assets at the time of winding up of the company<\/span><\/b><\/td>\n<td valign=\"top\"><span lang=\"EN-IN\">Once the Liquidator is appointed<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"NEW_OPPORTUNITY_FOR_REGISTERED_VALUERS_UNDER_THE_INCOME_TAX_ACT_1961\"><\/span><a href=\"https:\/\/carajput.com\/archives\/new-opportunity-for-registered-valuers-under-the-income-tax-act-1961.pdf\"><span style=\"color: #000080;\"><strong>NEW OPPORTUNITY FOR REGISTERED VALUERS UNDER THE INCOME TAX ACT 1961<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26052\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0001.jpg\" alt=\"NEW OPPORTUNITY FOR REGISTERED VALUERS UNDER THE INCOME TAX ACT 1961\u2019\" width=\"1098\" height=\"816\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0001.jpg 1098w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0001-300x223.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0001-1024x761.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0001-768x571.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0001-800x595.jpg 800w\" sizes=\"(max-width: 1098px) 100vw, 1098px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26053\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0002.jpg\" alt=\"NEW OPPORTUNITY FOR REGISTERED VALUERS UNDER THE INCOME TAX ACT 1961\u2019 -1\" width=\"1104\" height=\"1281\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0002.jpg 1104w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0002-259x300.jpg 259w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0002-883x1024.jpg 883w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0002-768x891.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0002-800x928.jpg 800w\" sizes=\"(max-width: 1104px) 100vw, 1104px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26054\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0003.jpg\" alt=\"NEW OPPORTUNITY FOR REGISTERED VALUERS UNDER THE INCOME TAX ACT 1961\u2019-2\" width=\"1077\" height=\"923\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0003.jpg 1077w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0003-300x257.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0003-1024x878.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0003-768x658.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/07\/Article_page-0003-800x686.jpg 800w\" sizes=\"(max-width: 1077px) 100vw, 1077px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Overview_of_valuation_requirements_under_various_Indian_laws_and_regulations\"><\/span><span style=\"color: #000080;\">Overview of valuation requirements under various Indian laws and regulations<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Valuation_Requirements_Across_Laws\"><\/span><span style=\"color: #000080;\"><strong>1. Valuation Requirements Across Laws<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Purposes_of_Valuation\"><\/span><span style=\"color: #000080;\"><strong>Purposes of Valuation:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Fresh Issue of Shares: Required under RBI (FDI\/ODI), Income Tax, Company Law, SEBI.<\/li>\n<li>Transfer of Shares: RBI (FDI\/ODI), Income Tax.<\/li>\n<li>Business Combinations \/ Schemes: Company Law, SEBI, Financial Reporting.<\/li>\n<li>ESOP \/ Sweat Equity: Income Tax, Company Law, Financial Reporting.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2_Under_Companies_Act_2013\"><\/span><span style=\"color: #000080;\"><strong>2. Under Companies Act, 2013<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Valuation is triggered for:<\/p>\n<ul>\n<li>Conversion of Section 8 companies.<\/li>\n<li>Issue of shares for non-cash consideration.<\/li>\n<li>Sweat equity (fair price and IP valuation).<\/li>\n<li>Share issues (non-rights\/ESOP).<\/li>\n<li>Employee share schemes.<\/li>\n<li>Secured debentures.<\/li>\n<li>Compromise\/arrangement filings.<\/li>\n<li>Mergers, acquisitions, and minority stake buyouts.<\/li>\n<li>Winding up (Section 281).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_Under_Insolvency_and_Bankruptcy_Code_IBC_2016\"><\/span><span style=\"color: #000080;\"><strong>3. Under Insolvency and Bankruptcy Code (IBC), 2016<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Valuation is required:<\/p>\n<ul>\n<li>During CIRP (by two valuers, or third if needed).<\/li>\n<li>In liquidation (if CIRP valuation is outdated).<\/li>\n<li>For voluntary liquidation.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"4_Under_Indian_Accounting_Standards_Ind_AS\"><\/span><span style=\"color: #000080;\"><strong>4. Under Indian Accounting Standards (Ind AS)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Valuation triggers include:<\/p>\n<ul>\n<li>Revaluation of PPE (Ind AS 16).<\/li>\n<li>Fair value of financial instruments (Ind AS 109).<\/li>\n<li>Investment property (Ind AS 40).<\/li>\n<li>Impairment testing (Ind AS 36).<\/li>\n<li>ESOP\/SAR accounting (Ind AS 102).<\/li>\n<li>Business combinations (Ind AS 103).<\/li>\n<li>Non-current assets held for sale (Ind AS 105).<\/li>\n<li>Lease accounting (Ind AS 116).<\/li>\n<li>Employee benefits (Ind AS 19).<\/li>\n<li>Government grants (Ind AS 20).<\/li>\n<li>Biological assets (Ind AS 41).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"5_Under_FEMA_FDIODI_Master_Directions\"><\/span><span style=\"color: #000080;\"><strong>5. Under FEMA (FDI\/ODI Master Directions)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Valuation is required for:<\/p>\n<ul>\n<li>Inbound\/outbound investments.<\/li>\n<li>Buybacks.<\/li>\n<li>Share swaps.<\/li>\n<li>Transfer of shares between residents and non-residents.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"6_Under_Income_Tax_Act_1961\"><\/span><span style=\"color: #000080;\"><strong>6. Under Income Tax Act, 1961<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Valuation applies to:<\/p>\n<ul>\n<li>Purchase\/sale of unlisted shares (Section 56(2)(x), 50CA).<\/li>\n<li>Premium share issues (Section 56(2)(vii)(b)).<\/li>\n<li>ESOPs (Section 17).<\/li>\n<li>Arm\u2019s length pricing (Section 92, 93).<\/li>\n<li>Slump sale (Section 50B).<\/li>\n<li>Sweat equity valuation (Section 115WC).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"7_Under_SEBI_Regulations\"><\/span><span style=\"color: #000080;\"><strong>7. Under SEBI Regulations<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Valuation is required for:<\/p>\n<ul>\n<li>NAV disclosures (LODR).<\/li>\n<li>Offer pricing (Takeover Code).<\/li>\n<li>Preferential issues (ICDR).<\/li>\n<li>Asset valuation for REITs\/InvITs.<\/li>\n<li>Delisting of equity shares.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Rajput_Jain_and_Associates_Specialize_IBC_advisory_services\"><\/span><span style=\"color: #000080;\"><strong>Rajput Jain and Associates, Specialize IBC advisory services <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>At Rajput Jain and Associates, we specialize in providing advisory services through tailored solutions to help businesses meet both their unique and regular objectives. With a team of experienced professionals working with a client-specific approach, we are committed to driving measurable results and fostering long-term success for our clients across varied sectors.<\/p>\n<p>Our expertise spans the following domains:<\/p>\n<ol>\n<li>Business Strategy and Planning<\/li>\n<li>Corporate Insolvency Resolution (CIR) Process<\/li>\n<li>Corporate Insolvency Resolution Process (CIRP) Audits<\/li>\n<li>IBC Advisory Services:\n<ul>\n<li>Resolution Plan Preparation<\/li>\n<li>Arranging Prospective Buyers for CIRP and Liquidation Matters<\/li>\n<li>Accounting and Taxation Services for CIRP Care<\/li>\n<li>Liquidation Process<\/li>\n<li>Prepackaged\/ Individual Insolvency<\/li>\n<li>Corporate Debtor (CD) Operations<\/li>\n<li>Account and Finance Management<\/li>\n<li>Compliance and Technical Services<\/li>\n<li>Advisory to Committee of Creditors (CoC)<\/li>\n<li>Building Resolution Plans<\/li>\n<li>Accounting and Taxation Services for Liquidation Matters<\/li>\n<li>Section 29A Certificate Issuance<\/li>\n<li>Financial Bid Evaluation before Section 29A Due Diligence<\/li>\n<li>Voluntary Liquidation Process<\/li>\n<li>Forensic audit<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p>We would welcome the opportunity to discuss how Rajput Jain and Associates can support your initiatives and requirements. Whether you are seeking valuation services or exploring ways to invest, restructure, or improve internal processes, we are here to help.<\/p>\n<p>Please feel free to schedule a call or meeting at your convenience. You can reach us at singh@carajput.com or at 9555 555 480.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Valuation requirements in case of Registered Valuer of Financial Assets in India A Valuation report in respect of shares, property or assets, tangible and intangible, movable and immovable, of the company must be prepared by a Registered Valuer in case or instance of a compromise or agreement between members (such as in mergers or amalgamations) &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8788],"tags":[10061,797],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/25161"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=25161"}],"version-history":[{"count":6,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/25161\/revisions"}],"predecessor-version":[{"id":30540,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/25161\/revisions\/30540"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=25161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=25161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=25161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}