Dear Members,
An Indian Company issuing shares to a Non-resident is required to get the valuation of the shares done from a Merchant Banker or Chartered Accountant. As per the notification, the valuer is required to adopt Discounted Free Cash Flow Method for valuing the shares.
However, there is no detailed guidelines from RBI regarding number of years to be considered etc., for valuation as per Discounted Free Cash Flow method.
In this connection, I wish to know if I can get some help as to the valuation, logics, number of years to be considered for valuing the shares.
It will be very helpful if a copy of the report is made available.
Regards
Dharmaraju
CAclubindia
