Valuation of Shares
                           D N V & Co
                                                 Chartered Accountants
         Valuation – Legal Provisions
    • Companies Act, 2013
    • Income Tax Act, 1961
    • FEMA Regulations
      Valuation Requirements under the Companies 
                Act, 2013
     • Section 62 – 
      • Further Issue of Share Capital 
      • Issue of sweat equity shares
      • Issue of shares on a preferential basis.
      • ESOP
      • Buy Back
     • Provisions with respect to Restructuring of Companies
      • Power to compromise or make arrangements
      • Purchase of minority shareholding 
                                 Valuation Requirements under
                                           Income Tax Act, 1961
       Valuation of unquoted shares and securities
       Type of security Unquoted equity shares               Unquoted equity shares              Unquoted securities other than 
                                                                                                 equity shares
       Transaction         In case of fresh issuance of      Transfer of Equity Shares           Applicable for all cases
                           shares
       Applicable          Section 56 (2) (viib) read with  Section 56 (2) (x) read with         Section 56 (2) (viib) and (x) read 
       section and rule Rule 11UA(2)                         Rule 11UA(1)(c)(b)                  with rule 11UA(1)(c)(c)
       Method              Discounted Cash Flow              Book Value method                   Method is not specified.
       prescribed for      method (DCF) or book value 
       computation of  method at the option of 
       FMV                 assesse
       Valuer              Merchant Banker                   Merchant Banker or chartered        Merchant Banker or chartered 
                                                             accountant                          accountant
                  Valuation Requirement under
              As per Regulation 11 of FEMA 20(R):
              Transfer / Fresh Issue        Resident individual /            Non Resident
                    of Shares                    Company
             Resident individual               Non Resident                Transfer of Shares