Issue of Shares other than Cash

Section 163

In case a company intends to make a preferential allotment of shares for consideration other than cash, the fair value of the assets given as consideration, shall be determined by a Valuer for tangible assets and submitted to the stock exchange where the shares are listed.

Conversion of Debt in to Equity as a part of DebtRestructuring

Section 158

In case of convertible loans/debentures if lender has exercised option to convert debt into equity and conversion price has been determined based on guidelines issued by as part of debt restructuring, the price at which such conversion is done has to be certified by two independent valuers of SFA.

Where Shares are not Traded Frequently

Section 165

Where shares of entity are not frequently traded the price at which they are issued has to be fixed after valuation by a Valuer for SFA. It is to be noted that for preferential issue of shares which are frequently traded in stock exchange, there is no need for a valuation as the issue price is decided based on average price of the share in past 2 weeks.

Security Receipt

Section 87C

Security Receipts which are listed on a stock exchange should be valued by an independent valuer.

Alternate Investment Funds

SEBI (AIF) Regulations, 2021

PE funds, Venture Capital Funds, Hedge Funds qualify as AIF. They need to take a periodical valuation from a Valuer for SFA.

Infrastructure Investment Trusts  

SEBI (Invit) Regulations 2014

These trusts need to provide a half yearly valuation report of assets held. They also need to get this valuation done annually as part of compliance.

Real Estate Investment Trust 

SEBI (Reit) Regulations, 2021

Real estate investment trusts need to appoint valuers for real estate. These Valuers shall calculate the value of assets of the trust on a half yearly basis. The trust will declare NAV of each unit of the trust based on the NAV.