Pricing Guidelines & Valuation
FEMA's pricing guidelines are the quiet regulator of every share transaction between residents and non-residents: a foreign investor may not subscribe below fair value, and may not sell to a resident above it — with fair value certified by a registered valuer or merchant banker using internationally accepted methodology. The rule sounds procedural; in practice it is the single most examined document in FEMA diligence, because a defective valuation contaminates the transaction built on it, and the contamination is discovered years later by people pricing it against you.
We manage valuation as the compliance-critical exercise it is. Certificates are commissioned from valuers whose work withstands scrutiny; methodology is matched to the company's stage and the transaction's shape — DCF for going concerns, NAV where appropriate, and the judgment calls in between documented rather than assumed; and timing is handled so certificates are valid when the transaction actually completes, not merely when it was planned. Where past transactions rest on questionable valuations, we assess the exposure candidly and plan the remediation.
What this covers
- Registered-valuer and merchant-banker certificates for issues, transfers, conversions, and swaps.
- Methodology selection and documentation matched to company stage and transaction type.
- Pricing compliance review for rights issues, ESOPs, bonus issues, and convertible conversions.
- Timing management so valuations remain valid at completion.
- Historic-valuation risk assessment during diligence preparation and cleanup.
Who needs this
Companies issuing shares to foreign investors; parties to resident–non-resident transfers; and counsel who need the valuation workstream handled to deadline inside a live transaction.
How we deliver
- Valuation requirements identified per transaction with methodology matched to stage and shape.
- Certificates commissioned from valuers whose work withstands regulatory and diligence scrutiny.
- Timing managed so certificates are valid at completion, not merely at planning.
Why A2 Consultants
The valuation certificate is the most examined page in FEMA diligence, and we treat it accordingly — methodology documented, judgment defensible, and the valuer able to stand behind it years later when someone asks.
Engagement & what to expect
Valuation support runs inside transaction timelines: requirements identified at planning, valuers commissioned with methodology matched to the company's stage, and certificates delivered valid for the completion date rather than the announcement date. Typical turnaround is two to four weeks from complete information. Standalone engagements include pricing-compliance reviews of past transactions — usually commissioned before funding rounds or exits, where a defective historic valuation is cheapest to address. We maintain relationships across the registered-valuer and merchant-banker community, matching each mandate to a professional whose work withstands the scrutiny it will meet.
The valuation certificate is one page that carries the whole transaction — commission it as carefully as the deal it supports.