Valuation at the time of issuance of CCD

[Paridhi Agarwal]

Hi,

Is it required to carry out the valuation at the time of issuance of CCD ?

Regards
Paridhi

[Vineet Maheshwari]

No you can valued the same at the time of conversion also. However the same must be disclosed in explanatory statement of the SR.

Thanks

Vineet Maheshwari

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[vaibhav gupta]

Hi,

 The valuations is required at the time of issue as per terms of the issue 

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[CA.Chandrasekaran Ramadurai]

Pricing guidelines Fresh issue of shares:

 Price of fresh shares issued to persons resident outside India under the FDI Scheme, shall be on the basis of 

o  SEBI guidelines in case of listed companies , 

o Not less than fair value of shares determined by a SEBI registered Merchant Banker or a Chartered Accountant as per as per any internationally accepted pricing methodology on arm’s length basis. The pricing of shares / convertible debentures / preference shares should be decided / determined upfront at the time of issue of the instruments. The price for the convertible instruments can also be a determined based on the conversion formula which has to be determined / fixed upfront, however the price at the time of conversion should not be less than the fair value worked out, at the time of issuance of these instruments, in 12 accordance with the extant FEMA regulations

Read more at: https://taxguru.in/company-law/raising-funds-compulsorily-convertible-debentures.html
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