- Companies Act, 2013
- Income Tax Act, 1961
- Foreign Exchange Management Act, 1999
- Other various Act
- Companies Act, 2013 – Registered Valuer under IBBI
- Income Tax Act, 1961 – Chartered Accountant, if DCF valuation is not considered in the report. SEBI registered Merchant Banker is eligible to certify any report under this Act
- Foreign Exchange Management Act, 1999 - Chartered Accountant or a SEBI Registered Merchant Banker.
- Companies Act, 2013 – Not mentioned in the Act. Practically, a six months period is a reasonable level of acceptance.
- Income Tax Act, 1961 - Not mentioned in the Act. Practically, a six months period is a reasonable level of acceptance.
- Foreign Exchange Management Act, 1999 – Validity of the valuation report is 90 days under this Act
Valuation report is mandatory under FEMA if the Company makes right issue of shares to a person resident outside India. There is no requirement under Companies Act for a valuation report under right issue of shares.
Valuation report is mandatory under FEMA in case of transfer of shares from/to any shareholder resident outside India. There is no requirement under Companies Act for a valuation report under transfer of shares. Under Income Tax Act, Fair value of shares is also to be computed as per Rule 11UA.
Valuation Report of share is required at the time of issuance of ESOP under Companies Act. Valuation Report of Option is also required under Income Tax Act when the same is exercised by the employee.
Valuation Report is not required for issuance of redeemable and Irredeemable Debentures and Preference Shares. However, Valuation Report is mandatory in case of Convertible Debentures and Preference Shares.