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Home / Tax & Compliance / Business Valuation
Last updated: 2 October 2026
Share issues, transfers, foreign investment, ESOPs and mergers often need a valuation report from the right kind of valuer. Expertvuw’s team identifies which law applies, gathers the data and coordinates the report with an independent registered valuer, Chartered Accountant or SEBI-registered merchant banker as required.
The same company can need different valuation reports for different purposes, each prescribed under a different law. Income-tax rules set methods for fair market value of unquoted shares; FEMA pricing guidelines apply when shares are issued to or transferred with non-residents; and the Companies Act requires a registered valuer for matters such as preferential allotments, mergers and certain asset transactions.
Each law also specifies who may sign the report. Companies Act valuations are carried out by registered valuers under the IBBI framework; FEMA pricing valuations are by a Chartered Accountant, SEBI-registered merchant banker or practising cost accountant; income-tax valuations follow the Rules, including merchant banker reports for some methods.
Getting the purpose and signatory right at the start avoids repeating the exercise when a bank, the RBI or the registrar asks for a different report.
Basis: Companies Act, 2013 (section 247) and Companies (Registered Valuers and Valuation) Rules, 2017; FEMA (Non-debt Instruments) Rules, 2019; Income-tax Rules on fair market value. Last updated: 27 September 2026.
Valuations required under the Companies Act must be done by a registered valuer recognised under the IBBI framework.
Issue of shares to non-residents cannot be below fair value; transfer pricing rules apply to resident–non-resident transfers.
Income-tax rules prescribe methods for fair market value, relevant for share transfers and certain receipts.
Most reports must be as of a date close to the transaction, so an old report may not be accepted.
Common approaches include discounted cash flow, net asset value and market comparables, depending on the law and business.
The valuer must be independent of the company; Expertvuw coordinates, and the report is signed by the valuer.
Valuation issues usually appear later, during an RBI filing, audit or tax assessment.
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Valuation usually sits alongside these services.
Reporting foreign investment to the RBI with the pricing report.
ESOP scheme design, approvals and filings.
Scheme-based mergers that need valuation and share exchange ratios.
Transfer documentation, stamp duty and filings.
Confirm the law, transaction and valuation date.
Identify the right category of independent valuer.
Gather financials, projections and supporting documents.
Valuer applies suitable methods and reviews assumptions.
Receive the signed valuation report.
Use the report in board approvals, RBI or MCA filings as needed.
The report is only useful if it fits the transaction it supports.
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Valuations required under the Companies Act, 2013 must be done by a registered valuer recognised under the IBBI framework.
Under FEMA rules, fair value for unlisted shares is determined by a Chartered Accountant, a SEBI-registered merchant banker or a practising cost accountant, using an internationally accepted pricing method.
Usually not. Different laws prescribe different signatories and methods, so the purpose should be defined before the report is commissioned.
There is no single validity period. Reports are prepared as of a date, and authorities generally expect the date to be close to the transaction.
No. Expertvuw coordinates the process and data; reports are issued by independent valuers eligible under the relevant law.
ACS – Director, Expertvuw Management Pvt Ltd
Valuation work is coordinated by Expertvuw’s team. Valuation reports are issued by independent registered valuers, Chartered Accountants or SEBI-registered merchant bankers eligible under the relevant law.