Valuations for regulatory compliance under the Companies Act, IBC, Income Tax Act, and FEMA.
Valuation is no longer a mere theoretical exercise—it is a highly scrutinized regulatory mandate. An incorrect valuation methodology or an unqualified valuer can lead to invalidated corporate transactions, hefty regulatory penalties, or prolonged tax litigation. We provide robust, purpose-driven valuation reports prepared by authorized IBBI-Registered Valuers (Securities & Financial Assets), tailored precisely to the legal triggers of the Companies Act, the Insolvency & Bankruptcy Code (IBC), the new Income-tax Act, 2025, and the Foreign Exchange Management Act (FEMA).
Whether you are issuing equity, executing a slump sale, undergoing a corporate restructuring, or navigating insolvency, our valuation models are designed to withstand the rigorous scrutiny of the MCA, Income Tax authorities, the RBI, and the NCLT. We adopt a holistic approach—utilizing the Income, Market, and Asset approaches as mandated by the latest IBBI Valuation Standards—to ensure your deal pricing is structurally sound and fully compliant with the rapidly evolving 2026 regulatory landscape.
The IBBI MandateOnly an IBBI-registered valuer is legally permitted to issue valuation reports under the Companies Act, 2013 and the IBC. Using an unqualified professional exposes the company to penalty and renders the transaction legally void.
MethodologyThe latest valuation standards permit the use of Income (DCF), market, and asset approaches. All three methods may give drastically different values for the same asset.
Purpose-Specific MethodologiesA company does not have a single 'absolute' value. The same enterprise may yield a different value depending on whether the objective is a merger integration (DCF method), a tax computation (NAV method), or an insolvency resolution (Liquidation value).
Whenever a law — such as the Companies Act, IBC, Income Tax Act, or FEMA — requires the valuation to be done by a registered valuer.
Sound methodology, appropriate assumptions, and clear narration — so the conclusion holds up under examination.
If the valuation is for issuing new shares (Right Issue, Preferential Allotment) under the Companies Act, it must be done by an IBBI Registered Valuer. If it is for tax compliance involving non-residents, a SEBI Merchant Banker may be required.
Different laws have different objectives. The Companies Act seeks to protect shareholders by ensuring shares aren't issued below fair value. The Income-tax Act seeks to prevent tax evasion by ensuring shares aren't issued at an excessive premium or transferred below fair market value. FEMA seeks to protect foreign exchange reserves. Therefore, one transaction might require methodologies that satisfy multiple statutory rules simultaneously.
Yes. Under the Companies Act, any preferential allotment of shares requires a valuation report from a Registered Valuer, even if the shares are being issued at face value, to legally establish that the fair market value justifies the issue price.
Yes. You require a valuation at two stages for Employee Stock Options: first, by a Registered Valuer at the time of granting the options to determine the accounting expense, and second, at the time the employee exercises the options to determine the perquisite value for calculating the employee's income tax liability under the new tax rules.
Typically financials, projections, asset details, and the purpose of valuation. We share a tailored checklist.
Tell us a little about your requirement and our team will get back to you with the right guidance and a clear next step.
