Financial Daily from THE HINDU group of publications
Thursday, Apr 10, 2003

News
Features
Stocks
Port Info
Archives

Group Sites

Home Page - Regulatory Bodies & Rulings
Corporate - Fixed Deposits


Norms for corporate assets, shares — DCA expert group outlines model code for valuers

Our Bureau

According to the committee, the valuation norms should also be applicable to all unlisted public companies accepting public deposits with a minimum net worth of Rs 25 crore or minimum turnover of Rs 150 crore.

NEW DELHI, April 9

AN expert group set up by the Department of Company Affairs (DCA) has made a case for bringing in all listed companies under a new set of uniform "valuation principles on shares" that may be prescribed by the Government.

As valuation of shares and computation of exchange ratio are key issues in any scheme or amalgamation or merger of companies, the DCA had set up an expert group on `Valuation principles for corporate assets and shares and other related matters'.

The Group, which submitted its report today, also outlined a model code of conduct for valuers.

According to the committee, the valuation norms should also be applicable to all unlisted public companies accepting public deposits with a minimum net worth of Rs 25 crore or minimum turnover of Rs 150 crore.

Further, the committee has also specified the transactions for which independent valuation by the registered valuer would be mandatory.

Except for scheme of compromise and arrangement of a wholly-owned subsidiary of a company with itself and vice versa, and compromise with creditors not amounting to either a business combination or a spin-off, all schemes of compromise and arrangement under Section 391 to 394 of the Companies Act would require a mandatory valuation, it said.

"The DCA after examining the report will incorporate the same by amending the Companies Act," official sources said.

Describing the qualifications, registration and the model code of conduct for valuers, the group said that, "experienced valuers may be registered in their individual capacity as `valuers in practice', provided they meet certain minimum qualification and experience requirements."

The DCA will initially be the Regulator and Disciplinary Authority over the registered valuers, whether they are valuers in practice or valuers who have qualified, it said. The committee also prescribes for peer review.

The DCA shall maintain a panel of registered valuers who are undertaking or have undertaken mandatory valuations to conduct a peer review and form the Peer Review Committee.

Article E-Mail :: Comment :: Syndication

Stories in this Section
SBI Life keen to enter 55-plus pension scheme


`No SARS case found till Tuesday'
ICAI wants IT in accountancy, commerce courses
Naik hints at cut in petrol, diesel prices
Banks want PLR floor kept at 10.5 pc
Bajoria, `others' declare 4.9% stake in Bombay Dyeing
Norms for corporate assets, shares — DCA expert group outlines model code for valuers


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line