Who can do valuation of shares?

Can CA give valuation of shares?

23/2018 dated 24th May, 2018 it is provided that now only merchant banker can do valuation of unquoted equity shares under Discounted Free Cash Flow method and Chartered Accountants are no more allowed to do the same.

Who can prepare valuation report?

Under Companies Act 2013, a valuation report from a registered valuer registered under IBBI is required. For income tax purposes a valuation report from a Merchant Banker is required. Thus ideally 2 valuation reports will be required everytime you raise funds.

Can statutory auditor do share valuation?

The Bangalore Income Tax Appellate Tribunal (ITAT) said that auditors of a company cannot double up as accountants especially in situations while dealing with “share valuation for the purpose of excess share-premium taxability.”

Who can do valuation in India?

According to the Reserve Bank of India guidelines, Only a SEBI (Securities and Exchange of India) registered Merchant Banker (Cat-1) can do the valuation if the transaction exceeds USD 5 Million or the transaction pertains to the swap of shares.

Is valuation required for transfer of shares?

Any transfer of unquoted (unlisted) shares shall be subject to determination of Fair market value calculated in accordance with the method (formula) as prescribed in the above-mentioned rule which shall not be less than book value of shares which has to be certified by a Category-I Merchant banker or Chartered …

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Who can do valuation under FEMA?

a) NAV method: As per Rule 11UA, there is no specific requirement that which person will do the valuation. Therefore, any registered valuer can do the valuation for issue of shares on fair Market Value.

Can companies issue face value shares?

Yes you can issue shares at face value and there won’t be any issue.

Who are registered valuers?

The valuation of intellectual property rights or of know how or value additions for which sweat equity shares are to be issued, shall be carried out by a registered valuer, who shall provide a proper report addressed to the Board of directors with justification for such valuation. 3.

Is valuation required for shares of private limited company?

Under the provisions of the Companies Act, a Registered Valuer’s report on valuation of equity shares is mandatory in the following situations: Issue of new shares to shareholders under Section 62 except in case of a rights issue. … Allotment of shares for consideration other than cash and issue of sweat equity.

Can a auditor do a valuation?

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) has held that an internal auditor cannot issue valuation certificates to the companies they are auditing. … The Tribunal noted that the purposes of sub-rule (2) of rule 11UA, the auditor cannot be an accountant for the purposes of Rule 11UA (2).

Can auditors provide valuation services?

Yes, because the auditor is performing managerial function or making any managerial decisions and such a valuation is also a source of the financial information subject to the review or audit.


Can a CA be registered valuer?

Any Chartered Accountant, having three years of Post-Qualification experience as a Chartered Accountant can become a Registered Valuer. Now, a Chartered Accountant is not required to be a Graduate to become a Registered Valuer.