Do You Know?
Myth
Every Chartered Accountant can do valuation of shares and securities
Fact
Recently, there is changes in the regulatory regime. The Companies Act and IBC prohibits Chartered Accountant from valuation of shares and securities
Who Can Do Valuation of Securities and Financial Assets
Regulations / Act | Registered Valuer | Chartered Accountabt | JS |
|---|---|---|---|
Companies Act 2013 | |||
Insolvency and Bankruptcy Code, 2016 (IBC) | |||
FEMA | |||
Income Tax |
When Valuation Report From Registered Valuer is Required?
- Further issue of capital
- Issue of sweat equity shares
- Valuation of transactions entered between specified related party for a consideration other than cash
- Compromise or arrangements with creditors/members
- Merger and amalgamation of companies
- Purchase of minority shareholding
- Creation of security
- Return of allotment
- Valuation of assets as required by Audit Committee
- Valuation of assets and liability as required by liquidators
- Valuation of securities under various provisions of IBC, 2016