Valuation Under FEMA/FDI
Defensible Valuation for FDI, ODI & Cross-Border Transactions - RBI & FEMA Compliant
When capital crosses Indian borders, pricing is not a commercial decision it is a regulatory requirement. The Reserve Bank of India mandates that every share issuance, transfer, or convertible instrument involving a non-resident must be valued using Internationally Accepted Valuation Methodologies. We deliver independent, audit-ready FEMA valuation reports that satisfy RBI guidelines and AD Bank scrutiny every time.
- SEBI Merchant Banker Certified
- FEMA Compliant Reports
- RBI Pricing Compliant
- AD Bank Ready
- End-to-End Support
India's Trusted FEMA Valuation Advisors
My Valuation provides independent FEMA and FDI valuation services across India advising startups, SMEs, promoters, MNC subsidiaries, and Company Secretaries on every cross-border transaction under the Foreign Exchange Management Act, 1999 and RBI pricing guidelines.
Our team is led by CA Parth Shah, IBBI Registered Valuer working in direct association with SEBI Registered Category I Merchant Bankers, the only professionals authorized under RBI guidelines to certify FEMA valuation reports.
We do not just prepare numbers. We act as compliance gatekeepers ensuring your valuation satisfies the RBI's Internationally Accepted Valuation Methodology mandate, protects you from FEMA penalties, prevents AD Bank rejections, and resolves the hidden pricing conflict between FEMA and Income Tax rules before it becomes a problem.
FEMA Valuation Services We Offer for
We provide complete valuation support for every cross-border transaction trigger under FEMA 1999 and the NDI Rules 2019:
Getting CCPS & CCD Valuation Right Under FEMA
An incorrect valuation leads to RBI non-compliance, AD Bank objections, and delayed FC-GPR approvals. We make sure it never comes to that:
Equity Classification from Day One
Our valuations are aligned with RBI's treatment of CCPS and CCDs as equity not debt from the moment of issuance
Issue Price & Conversion Economics
We model conversion ratios and embedded instrument economics to ensure pricing holds up at both entry and conversion
AD Bank-Ready Format
Report structured to clear Authorized Dealer Bank scrutiny on first submission no back-and-forth, no delays
- Sample Report
Investor Perspective Report
Valuation as per Companies Act 2013 and FEMA, for investor transactions, FDI pricing compliance, and fund-raise due diligence.
The Real Cost of Getting FEMA Valuation Wrong
FEMA contraventions carry some of the most severe financial penalties in Indian corporate law and most of them arise directly from incorrect or missing valuations:
| Contravention | Penalty |
|---|---|
| Shares issued to non-resident below Fair Value | Up to 3x the amount involved in the contravention |
| FC-GPR not filed within 30 days of allotment | RBI compounding penalty — compounding application required |
| Incorrect pricing in FC-TRS share transfer | Penalty up to 3x the transaction amount |
| CCPS or CCD issued without proper FEMA valuation | AD Bank rejection + RBI show cause notice |
| ODI completed without a valuation report | RBI approval delay + compounding penalty |
Supporting Your FC-GPR & FC-TRS Filings
Every cross-border capital transaction requires a specific RBI form filed through your Authorized Dealer Bank. The valuation report is not optional it is a mandatory part of that filing:
What is FEMA Valuation
FEMA valuation is the process of determining the fair value of equity instruments, securities, or capital instruments for transactions involving non-resident entities in compliance with FEMA 1999, the Foreign Exchange Management (Non-debt Instruments) Rules 2019, and RBI pricing guidelines. Unlike standard commercial valuations, FEMA mandates Internationally Accepted Valuation Methodologies on an Arm's Length basis.
The goal is straightforward: to ensure that India's foreign exchange resources are not eroded through underpriced asset sales to foreigners or over-priced acquisitions from them. The Discounted Cash Flow method is the RBI's preferred approach for operating companies; it captures intrinsic business value, not just book value.
Don't Let Valuation Errors Block Your Foreign Investment
Partner with My Valuation for precise, FEMA-compliant, and defensible cross-border valuation reports accepted by AD Banks and the RBI.
When Does FEMA Require a Valuation?
FEMA valuation is triggered by specific cross-border capital flows monitored by the Reserve Bank of India:
Foreign Direct Investment (FDI)
Mandatory when an Indian company issues fresh equity or convertible instruments to a non-resident investor pricing must meet the RBI's Fair Value floor.
Overseas Direct Investment (ODI)
Required when an Indian entity invests capital to acquire or set up a Joint Venture or Wholly Owned Subsidiary outside India.
Secondary Share Transfers
When shares transfer between a Resident and a Non-Resident, price must meet the applicable RBI floor (for inbound) or ceiling (for outbound exits).
Conversion of Instruments
When CCPS or Convertible Notes held by foreign investors are converted into equity, pricing compliance at conversion is mandatory.
Cross-Border Share Swaps
When an Indian company merges with or swaps shares for a foreign entity exchange ratio must be independently valued and FEMA-compliant.
Rights Issue Renunciation
When a Resident renounces their rights entitlement in favour of a non-resident specific FEMA pricing rules are triggered.
Who Needs a FEMA Valuation?
What a Professional FEMA Valuation Protects You From
Valuation Methods We Use for FEMA Compliance
We apply internationally accepted methods in line with RBI pricing guidelines — the same standards used by Big 4 firms:
The Regulatory Framework We Work Within
We navigate the complete web of Indian statutes, so your cross-border deal is compliant on every front:
FEMA NDI Rules, 2019
Pricing Guidelines under FEMA NDI Rules
Income Tax Act - Sections 56 & 50CA
Companies Act, 2013 - Section 62
How We Work - Our 5-Step Process
01
Requirement Analysis
02
Data Collection
03
Financial Modelling
04
Draft Discussion
05
Final Report
What's Inside Our FEMA Valuation Report
Every report we deliver is a comprehensive document built for AD Bank submission and regulatory defense not just an internal reference:
Why Clients Choose My Valuation for FEMA
Trusted by 500+ Companies
to Raise Over ₹1500 Crore
Need a Certified
FEMA Valuation Report?
Every cross-border deal has a deadline. Whether it's FDI, ODI, an investor exit, or a CCPS conversion, My Valuation delivers a compliant, AD Bank-ready report in 5–7 business days.
