Corporate Professionals Blog

Ever Wondered what’s your Business Worth ? Our Valuation Team has prepared a crisp Video on  “ How to Value a Company” for its broad understanding. Do let us know your feedback. “Knowing what business is worth and what determines its value is prerequisite for intelligent decision making”. Corporate valuations form the basis of corporate finance activity including M&A, fund raising, Sale of businesses, Succession planning and also to meet regulatory and accounting requirements. The rapid globalization of the world economy has created both opportunities and challenges for organizations leading to uncertainty blowing across global markets and raising the importance of independent valuations all over the world. Justifying the value of businesses has grown more complex and challenging as its been accepted that valuation of closely held / infrequently traded listed shares is not an exact science and depends upon a number of factors like purpose, minority/ controlling interest, stage,

Reserve Bank of India (“RBI”) vide its notification dated May 26th 2014, has provided that, all NBFC’s has to obtain prior approval of RBI in case of acquisition / merger/ amalgamation/ transfer of control of NBFC’s. In this connection, RBI vide notification DNBS (PD) C.C. No. 160/03.10.001./2009 – 10 dated September 17th, 2009, mandated the requirement of prior approval only in such cases, wherein the acquisition / transfer of control of deposit taking NBFC’s were involved.

SEBI has issued a Circular No. CIR/CFD/DIL/5/2013 dated 4th February, 2013, to revamp the whole process of approval of Scheme of Mergers/demergers involving listed Companies. At present all schemes of merger/demerger/reduction of capital involving listed companies require a No Objection of Stock Exchanges before the schemes/petitions are filed before the High Court having jurisdiction over the companies. Similarly, schemes which allow listing of unlisted companies require approval of the SEBI after the scheme is approved by the High Court. As per the circular SEBI has observed that, in the recent past, the applications received for seeking exemption, contained inadequate disclosures, convoluted schemes of arrangement, exaggerated valuations, etc and is of the view that granting listing permission or exemption based on such applications may not be in the interest of minority shareholders. Mr. Manoj Kumar Vice President +919910688433 manoj@indiacp.com Keeping in vie