Valuation Under SEBI Regulations

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Valuation Under
SEBI Regulations

Valuation of the REIT assets should be in accordance with Regulation 21.
The Computation of NAV of the REIT should be based on the valuation done by the valuer and should be declared not later than fifteen days.from the date of valuation to the stock exchange(s), and such computation shall be done and declared not less than once in every six months.
Registered Valuer under section 247 of the companies Act, 2013 is required to be Apponted by the Investment Manager to undertake Valuation od REIT assets

Valuation of the InvITs assets should be in accordance with Regulation 21.
The Computation of NAV of the InvIT should be based on the valuation done by the valuer and should be disclosed to the stock exchange(s) not later than fifteen days from the date of valuation.
Registered Valuer under section 247 of the companies Act, 2013 is required to be Apponted by the Investment Manager to undertake Valuation od REIT assets

Regulation 38D that prior to listing of any security receipts on a recognized stock exchange, such security receipts have to be valued by an Independent Valuer.
Regulation 38G mandates an issuer whose security receipts are listed on a recognized stock exchange shall insure that a valuation is conducted by an independent valuer.
Clause (wa) of Regulation 2 defines “valuer” as any person who is a “registered valuer” under section 247 of the Companies Act, 2013.

Regulation 87A requires an issuer whose security receipts are listed on a stock exchange to get the listed security receipts valued at the end of each quarter by an Independent Valuer.
“Valuer” shall have the same meaning as assigned to them under Securities and Exchange Board of India (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations, 2008

Regulation 23 requires a recognised stock exchange to form a panel of expert valuers and where the equity shares of a company are delisted by a recognised stock exchange under this Chapter, the recognised stock exchange shall appoint an independent valuer or valuers who shall determine the fair value of the delisted equity shares.
For the Purpose of the said regulation, ‘valuer’ means a chartered accountant within the meaning of clause (b) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949), who has undergone peer review as specified by the Institute of Chartered Accountants of India constituted under that Act, or a merchant banker appointed to determine the value of the delisted equity shares

Regulation 49F & 49G of the said regulations require the Asset Management Company to appoint valuers for valuing of real estate assets of Real Estate Mutual Fund Schemes.
Regulation 49A defines “real estate valuer” as a qualified valuer of real estate assets who has been accredited by a credit rating agency registered with the Board.

Regulation 8 requires the valuation of the intellectual property rights or of the know-how provided or other value addition mentioned in Explanation II of sub-section (1) of section 79A of the Companies Act, 1956 to be carried out by a merchant banker and the merchant banker may consult experts and valuers having regard to the nature of the industry and the nature of the property or other value addition.
Regulation 2 defines valuer as a Chartered Accountant or a merchant banker appointed to determine the value of the intellectual property rights or other value addition.

Where exemption from Chapter V of the said regulation is sought for the preferential issue of specified securities made to the lenders pursuant to conversion of their debt, as part of a debt restructuring scheme implemented in accordance with the guidelines specified by the Reserve Bank of India, Conversion Price is to be certified by two Independent Valuers.

Where exemption from Chapter V of the said regulation is sought for the preferential issue of specified securities made to person(s) at the time of lenders selling their holding of specified securities or enforcing change in ownership in favour of such person(s) pursuant to a debt restructuring scheme implemented in accordance with the guidelines specified by the Reserve Bank of India, Issue Price is to be certified by two Independent Valuers.

As per Regulation 163, where the specified securities are issued on a preferential basis for consideration other than cash, the valuation of the assets in consideration for which the equity shares are issued shall be done by an independent valuer, which shall be submitted to the stock exchanges where the equity shares of the issuer are listed. Further, if the stock exchange(s) is not satisfied with the appropriateness of the valuation, it may get the valuation done by any other valuer.

Clause (kkk) of Regulation 2 defines “valuer” as a person who is registered under section 247 of the Companies Act, 2013 and the relevant rules framed thereunder or as specified by the Board

Regulation 10 provides for certain exemptions from the requirement to make an open offer under Regulation 3 and Regulation 4 and includes Acquisition of shares by the person(s), by way of allotment by the target company or purchase from the lenders at the time of lenders selling their shareholding or enforcing change in ownership in favour of such person(s), pursuant to a debt restructuring scheme implemented in accordance with the guidelines specified by the Reserve Bank of India. One of the conditions for the said exemption is that the purchase price shall be certified by two independent qualified valuers.
For this purpose “valuer” shall be a person who is registered under section 247 of the Companies Act, 2013 and the relevant Rules framed thereunder.

As per Regulation 23, Category I and Category II Alternative Investment Funds shall undertake valuation of their investments, atleast once in every six months, by an independent valuer appointed by the Alternative Investment Fund

The administrator appointed under the said regluations, shall engage the services of a registered valuer to evaluate the properties of defaulter that are attached by the Recovery Officer and for submission of a certified valuation report in accordance with the guidelines issued by the Board.
As per Regulation 2, “registered valuer” shall have the meaning assigned to it under the Companies (Registered Valuers and Valuation) Rules, 2017 or any other statutory modification thereof

The Board may appoint a qualified valuer or direct a qualified valuer to be appointed by the intermediary, if so considered necessary by the Board.

The advertisement for each collective investment scheme shall disclose in addition to the investment objectives, the method and periodicity of valuation of collective investment scheme property.

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