Definition of accountant as per Rule 11U

Prior to Amendment

A. Rule 11U defined “accountant“ under clause (a)

“(i) for the purposes of sub-rule (2) of rule 11UA, means a fellow of the Institute of Chartered Accountants of India within the meaning of the Chartered Accountants Act, 1949 (38 of 1949) who is not appointed by the company as an auditor under section 44AB of the Act or under section 224 of the Companies Act, 1956 (1 of 1956); and

(ii)in any other case, shall have the same meaning as assigned to it in the Explanation below sub-section (2) of section 288 of the Act;”

B. As per Rule 11UA, sub rule (2), in clause (b), accountants and merchant bankers were allowed to value unquoted share by discounted cash flow approach.

(b)the fair market value of the unquoted equity shares determined by a merchant banker or an accountant as per the Discounted Free Cash Flow method

Post Amendment

A. Clause (a) of Rule 11U has been omitted

B.  The word “accountant” has been omitted and now only merchant bankers are eligible to value unquoted share by discounted cash flow approach.

(b) the fair market value of the unquoted equity shares determined by a merchant banker or an accountant as per the Discounted Free Cash Flow method.

Thank You  Bro.....