The Reserve Bank mandates that such transactions be supported by a valuation report from a SEBI-registered merchant banker or a chartered accountant using internationally accepted methodologies. Whether it is foreign direct investment (FDI), rights issues to non-residents, or sale of shares by residents to foreign entities (or vice versa), pricing must be justified and documented.

Our team provides FEMA-compliant valuation reports that fulfill all RBI documentation and filing requirements under various schedules and rules. This includes compliance with Rule 21 of FEMA (Non-Debt Instruments) Rules, 2019, and relevant RBI Master Circulars.

We also guide clients on appropriate valuation methodologies Discounted Cash Flow (DCF), Net Asset Value (NAV), or Comparable Companies’ Multiples depending on the nature of the business and transaction.

We have deep experience handling valuations for startups, listed/unlisted companies, ESOP buybacks, capital infusions, and strategic stake transfers. All reports are crafted to meet the scrutiny of RBI, Authorised Dealer Banks (ADs), and auditors.

With our support, businesses can avoid regulatory delays, ensure full documentation, and confidently move ahead with compliant cross-border transactions.

• Required at the time of issue/transfer of shares to/from non-residents.
• Adheres to Rule 21 and related notifications under the NDI Rules.
• Recognized formats using DCF/NAV/Market Multiple methods.
• Required for bonus/rights issue or ESOPs to non-residents.
• Complete assistance in preparing valuation annexures and submissions.
• FEMA valuation support for startups raising foreign capital.

• Price justification in sale or purchase of equity/convertibles.

• For smooth, compliant execution and documentation.

We don’t believe in one-size-fits-all auditing. At Pawan Lohia & Associates, every Risk-Based Internal Audit begins with an in-depth understanding of your business model, industry dynamics, and regulatory exposure. Our team collaborates closely with your internal stakeholders to prioritize risk areas, define scope, and execute detailed audits with a strategic lens.