Valuation certificates for compliance are required under Companies Act 2013, Income Tax Act, SEBI Regulations and FEMA regulations in India.
While earlier the Valuation service was primarily provided by the Chartered Accountants (CA) and Merchant Bankers (MB). Ministry of Corporate Affairs (MCA) has notified Section 247 of the Companies Act, 2013 and introduced the Companies (Registered Valuers and Valuation) Rules, 2017, which has introduced concept of Registered Valuer (RV). In the new system, the valuation can be done by RVs, CAs and Merchant Bankers.
Following is the summary of requirement of valuation certificate from RV, MB or CA under Companies Act Income Tax Act, SEBI Regulations and FEMA regulations
I. Requirement of Valuation under the Companies Act, 2013.
II. Valuation required under Income Tax and other Acts
III. Provisions under the Insolvency and Bankruptcy Code, 2016 and the Regulations. Valuation to be done by RV in all cases under IBBI.
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