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.


This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after practice of Debt Solutions, Private Equity, Valuations and Mergers & Acquisitions.

Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.

This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.