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FEMA FDI & ODI Valuation Services

Independent Valuation Reports for Inbound and Outbound Investments under FEMA

Cross-border investments require independent valuations that comply with the Foreign Exchange Management Act (FEMA), RBI regulations, and internationally accepted valuation standards. Our experts provide independent and reliable valuation reports for Foreign Direct Investment (FDI) and Overseas Direct Investment (ODI), enabling businesses to execute inbound and outbound investment transactions with confidence while ensuring full regulatory compliance and adherence to applicable FEMA guidelines.

What are FEMA FDI & ODI Valuation Services?

FEMA FDI & ODI Valuation Services involve determining the fair value of shares, securities, and other financial instruments for cross-border transactions involving residents and non-residents. These independent valuations ensure compliance with the Foreign Exchange Management Act (FEMA), RBI pricing guidelines, and internationally accepted valuation standards for inbound and outbound investments. Our valuation reports support businesses, investors, and multinational organizations in executing cross-border transactions with confidence while meeting all applicable regulatory and reporting requirements.
  • Foreign Direct Investment (FDI)
  • Overseas Direct Investment (ODI)
  • Issue of Shares to Foreign Investors
  • Transfer of Shares Between Residents & Non-Residents
  • Issue of CCPS & CCDs

What Decision are you making?

01

Foreign Direct Investment (FDI)

FDI valuation supports inbound investments into India by determining the fair value of equity shares and other eligible securities issued or transferred to foreign investors. It ensures compliance with FEMA regulations and RBI pricing guidelines for investments by non-residents into Indian entities.

02

Overseas Direct Investment (ODI)

ODI valuation supports outbound investments by Indian entities into overseas companies, subsidiaries, and joint ventures. It assists businesses in determining the fair value of overseas investments while complying with FEMA regulations and RBI guidelines governing overseas direct investments.

Our Valuation Methods, Simplified

Income Approach

Determines the value of an intangible asset based on the present value of the future economic benefits or cash flows expected to be generated by the asset.

Market Approach

Estimates the value of an intangible asset by comparing it with similar assets or transactions observed in the market.

Asset Approach

Determines the value of a business or asset based on the fair value of its underlying assets and liabilities, making it particularly suitable for asset-intensive companies and investment holding entities.

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Frequently asked questions

Answers for business owners who want to understand the process before speaking with an expert.

A FEMA valuation is the process of determining the fair value of shares or other eligible securities for cross-border transactions involving residents and non-residents. It ensures compliance with the Foreign Exchange Management Act (FEMA), RBI regulations, and applicable pricing guidelines.

FEMA valuations can be performed for a wide range of instruments, including equity shares, compulsorily convertible preference shares (CCPS), compulsorily convertible debentures (CCDs), preference shares, share warrants, hybrid securities, and other eligible instruments permitted under FEMA regulations.

A FEMA valuation typically requires financial statements, capitalization table, shareholding pattern, details of the proposed transaction, constitutional documents, business projections (where applicable), and other financial and legal information relevant to the valuation.

Depending on the nature of the transaction and the financial instrument involved, FEMA valuations generally apply the Income Approach (Discounted Cash Flow Method)Market Approach, or Asset Approach, in accordance with RBI pricing guidelines and internationally accepted valuation standards.

Depending on the nature of the transaction and the applicable FEMA regulations, a valuation report may be required from a SEBI Registered Category I Merchant Banker, a Chartered Accountant, or another eligible valuer as prescribed under the relevant RBI and FEMA provisions

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