Valuation Requirements Under Various Statutes By CS Shweta Dubey


Serial No. |
Particulars |
Sections |
Valuation Requirements |
1 |
For further issue of shares (except right issue to Existing Shareholders and ESOP issue to employees) |
62 (1)(c) |
Valuation of Shares |
2 |
Restriction on Non Cash Transactions involving Directors |
192(2) |
Asset Valuation |
3 |
Scheme of Compromise or Arrangements (Compromise or arrangements with creditors and members) |
Section 230(2)(c)(v) and Section 230(3) of Companies Act, 2013 |
Valuation of Shares and determination of Swap Ratio |
4 |
Valuation for purchase of Minority Shareholders |
236 (2) |
Valuation of the Minority Shareholding |
5 |
Corporate Debt Restructuring |
232(2)(c) |
Securities Valuation |
6 |
Scheme of compromise / arrangement in case the transferor company is listed company and the transferee company is an unlisted company |
232(3)(h) |
Valuation of Shares and be made by the tribunal for exit opportunity to the shareholders of transferor company |
7 |
Winding up of Company |
281(1) (a) and 305 (2)(d) |
Valuation of Assets |
8 |
Issue of Sweat Equity Shares |
Rule 8 of Companies (Capital and Debentures), Rules 2014 |
Valuation for ascertainment fair Value of Shares. |
9 |
Creation of Security |
Rule 6 of the Companies (Acceptance of Deposits), 2014 |
Ascertainment of the Market Value of the Assets on which charge is Secured. |
10. |
Allotment of Securities for consideration other than Cash |
Section 39(4) of the Act |
Valuation of the consideration |
11. |
Audit Committee terms of reference |
Section 177 |
Valuation of undertakings or assets, wherever it is necessary |
Serial No. |
Particulars |
Applicable Section/ Regulation(s) |
Valuation Requirements |
1. |
Relevant period for avoidable transactions |
Sec 46 (2) of IBC, 2016 |
Valuation of the Undervalued Transactions |
2. |
Voluntary liquidation of corporate persons |
Sec 59(3)(b)(ii) of IBC, 2016 |
Valuation of the assets of the company |
3. |
Liquidation Process under IBC,2016 |
Regulation 35 of IBBI (Liquidation Process) Regulations, 2016 |
Valuation of assets intended to be sold. |
4. |
Corporate Insolvency Resolution Process |
Regulation 27 read with regulation 35 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 |
Ascertainment of Fair value and liquidation value of the Assets of the Corporate Debtor. |
5. |
Conduct of the Fast Track Process |
Regulation 26 read with regulation 34 of the IBBI (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 |
Ascertainment of Fair value and liquidation value of the Assets of the Corporate Debtor. |
6. |
Voluntary liquidation of corporate persons |
Regulation 3 of IBBI (Voluntary Liquidation Process) Regulations, 2017. |
Valuation of the assets of the Company. |
Serial No. |
Particulars |
Applicable Regulation(s) |
Valuation Requirements |
1. |
Valuation of the REIT assets |
Regulation 21 of SEBI (Real Estate Investment Trusts) Regulations, 2014 |
NAV Computation of the Real Estate Investment Trusts |
2. |
Valuation of the InvITs assets |
Regulation 21 of SEBI (Infrastructure Investments Trusts) Regulations, 2014 |
NAV Computation of the Infrastructure Investments Trusts |
3. |
Valuation of Security receipts |
Regulation 87A of SEBI (LODR) Regualtions,2015) |
The Valuation is to be made quarterly. |
4. |
Delisting of Shares |
Regulation 23 of SEBI (Delisting of Equity Shares) Regulations, 2009. |
Fair Value determination of delisted equity shares. |
5. |
Issue of specified securities are issued on a preferential basis for consideration other than cash. |
Regulation 163 of SEBI(Issue of Capital and Disclosure Requirements), 2018 |
In case of preferential issue of infrequently traded shares, Valuation of Assets are required. |
6. |
In case of Takeover of Companies |
SEBI (Substantial Acquisition of shares and Takeovers) Regualtions,2011 |
Valuation of the infrequently traded on the stock exchange. |
Under FEMA Regulations:
- Issue or transfer of shares or convertible securities requires valuation to a Non- Resident.

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About Author
Shweta Dubey
Qualification: Company Secretary
Company: Anmol Industries Ltd.
Location: Kolkata
Member Since: 29 Mar 2018 | Total Articles Contributed: 8
About Author :
I am a qualified CS currently working with a FMCG Organisation in Kolkata and have a keen interest in Corporate Laws.
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