Dear Members
1) In case of buy back of equity shares, is valuation necessary under Companies Act, 2013? Repercussions from ITA is not to be considered please.
2) If so, is it to be obtained from a practising CA or a RV?
3) Can buy back price be less than the fair value as per valuation?
Regards
CA CS Dipjyoti Majumdar
Valuation Requirement: Not explicitly mandated by Section 68, but required in practice to justify the offer price, satisfy fiduciary duties (Section 166), and complete Form SH-8 disclosures.
Valuer Qualification: Must be obtained from an IBBI-Registered Valuer (RV) under Section 247; a Practising CA can only act if registered as an RV.
Price Below Fair Value: Permissible under the Companies Act, provided full disclosures and justifications are included in the Explanatory Statement and Letter of Offer (SH-8).
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