Who can issue share valuation certificate?

Who can issue valuation certificate?

Typically, a merchant banker would need around 10 – 15 days to issue a valuation report. And, the merchant banker charges approximately INR 50,000 – 65,000 for the same. Note that a merchant banker valuation report is not required if you are issuing the shares to the existing shareholders through a rights issue.

Can a CA issue share valuation certificate?

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 issue valuation certificate under FEMA?

Valuation is when the company shares/ debentures are measured on the basis of the fair and actual value received from them. Under the Foreign Exchange Management Act, 1999 (FEMA) valuation can be done by a SEBI registered merchant banker or a chartered accountant.

Who can do valuation in India?

As per the provisions of Section 247 of companies Act, 2013 any valuation required to be done under the Companies Act, 2013, has to be done by the professional called Registered Valuer hence no professional other than Registered Valuer is eligible to perform the valuation task under Companies Act, 2013.

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Is valuation report required for issue of shares?

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.

Is valuation required for private placement?

It is mandatory to obtain report of Registered Valuer for allotment of shares as Private Placement. … Therefore, one can opine that Valuation is mandatory for allotment of shares on Private Placement and report taken from registered valuer shall fulfill the purpose of both acts.

Can a CA be merchant banker?

A CA obtains registration as category IV merchant banker under the SEBI rules and regulations and act as Advisor to a capital issue of a PRIVATE COMPANY.

Can a company issue shares at face value?

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

Can CA give valuation report?

The following registered valuer can do valuation: Practicing Company Secretaries registered with IBBI; Practicing Chartered Accountant registered with IBBI; Practicing Cost Accountant registered with IBBI; and.

Is valuation required for rights issue under Income Tax Act?

Under Income-tax Act, 1961

There are two options for valuation of FMV u/r 11UA: a) NAV method: As perRule 11UA, there is no specific requirement that which person will do the valuation. Therefore, one can opine that any registered valuer can do the valuation for issue of shares on fair Market Value.

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Is valuation report required for rights issue under Income Tax Act?

As per Income Tax Act, in case of right issue of shares, shares are issued to existing shareholders only in proportion to their shareholding. Therefore, no need of Valuation of Shares. In other words, in case of right issue of shares whether on face value/ premium no need of Valuation Report as per Income Tax Act.