Dear Friends
1 Co was incorporated in may 2011, with 3 subscribers, 2 being PROI.
As they were PROI, Company need to do reporting under FEMA whenever they pay for their portion of share subscripttion.
Now when co filed its FCGPR, the CA Valuation Certificate for shares value was also filed.
It mentioned the valuation (as per DCF method) as Rs 16. Now bank says that FEMA MASTER CIRCULAR on FDI says that the shares cant be issued below share valuation done by CA.
But my question to them was, as this is initial subscripttion, we cant give the shares @ value more than face value. IN SIMPLE WORDS WE CANT ISSUE INITIAL SUBSCRIPTION AT PREMIUM.
Their stand is still same, that shares cant be issued at price lower then CA valuation.
Kindly guide me, whether BANK is proper ? And if yes, then what to do now ?
CAclubindia
