Delhi: The department of company affairs (DCA) has
made a case for bringing in all listed companies under
a new set of uniform valuation principles on shares
that may be prescribed by the Indian government.
valuation of shares and computation of exchange ratio
are key issues in any scheme or amalgamation or merger
of companies, the DCA had set up an expert group on valuation
principles for corporate assets and shares and other related
matters. The group, which has already submitted
its report, also outlined a model code of conduct for
to the committee, the valuation norms should also be applicable
to all unlisted public companies accepting public deposits
with a minimum net worth of Rs 25 crore or with a minimum
turnover of Rs 150 crore. Further, the committee has also
specified the transactions for which independent valuation
by the registered valuer would be mandatory.
for the scheme of compromise and the arrangement of a
wholly-owned subsidiary of a company with itself and vice-versa
and a compromise with creditors not amounting to either
a business combination or a spin-off, all schemes of compromise
arrangement under Section 391 to 394 of the Companies
Act would require a mandatory valuation, it said. The
DCA after examining the report will incorporate the same
by amending the Companies Act.