Is valuation required for joint ventures?

Yes, valuations help determine each partner’s contribution and ownership share in joint ventures.

Is a valuation report older than 90 days acceptable for a FEMA transaction?

The valuation certificate issued by SEBI registered Merchant Banker must not be more than ninety days old as on the date of the transfer.

What is the Valuation Date?

Valuation date is the specific date at which the valuer estimates the value of the underlying asset.

What is the significance of valuation during fundraising?

It helps assess how much equity to offer in exchange for capital, ensuring fair deals for investors and owners.

How often should startups conduct valuations?

Startups should perform valuations during each fundraising round, or whenever there is significant business growth.

Are valuations required for startups?

Yes, valuations are particularly important for startups for various purposes including fundraising, equity distribution among founders and employees, and strategic planning.

How often should valuations be updated?

The frequency of valuation updates depends on the purpose. For financial reporting, it might be annual; for dynamic and high-growth sectors, more frequent updates may be needed.

When is a valuation required?

Valuation may be required for mergers and acquisitions, fundraising, regulatory requirements, litigation, and other purposes such as financial reporting and strategic planning.

Is valuation certificate is required if an Indian entity wants to restructuring of its foreign subsidiary?

Yes, it requires certification by a Registered Valuer or an equivalent authority in the host country for the compliance of Rule 18 of Foreign Exchange Management (Overseas Investment) Rules, 2022.

Who is AD Bank?

An AD bank, or Authorized Dealer bank, is a financial institution that has been authorized by the Reserve Bank of India (RBI) to deal in foreign exchange transactions. AD banks are important for facilitating cross-border transactions, such as imports and exports, by acting as intermediaries between exporters and importers.