+91 98717 84112
+91 98717 84112
ODI Valuation
Overseas Direct Investment (ODI) means when a company or individual invests in a foreign business by either buying a significant part of that foreign business, becoming a part of its founding documents, or acquiring a substantial share of a foreign business that's listed on a stock exchange. If the investment is in a company that's not listed on a stock exchange, it's still considered ODI.
Issue of shares for Unlisted Companies
Compliance with Foreign Exchange Management (Overseas Investment) Rules, 2022:
-
Governed by Rule 16 of Foreign Exchange Management (Overseas Investment) Rules, 2022.
-
Valuation Certificate requirement: AD bank, before facilitating a transaction, shall ensure compliance with arm’s length pricing taking into consideration the valuation as per any internationally accepted pricing methodology for valuation. A valuation report is required usually from a Merchant Banker.
Issue of shares for Listed Companies
Compliance with Foreign Exchange Management (Overseas Investment) Rules, 2022:
-
Governed by Rule 16 of Foreign Exchange Management (Overseas Investment) Rules, 2022.
-
Valuation Certificate requirement: AD bank, before facilitating a transaction, shall ensure compliance with arm’s length pricing taking into consideration the valuation as per any internationally accepted pricing methodology for valuation. A valuation report is required usually from a Merchant Banker.
Key Points to Consider
01
Which is the governing law for Unlisted
Foreign Exchange Management (Overseas Investment) Rules, 2022
02
Which is the governing law for listed
Foreign Exchange Management (Overseas Investment) Rules, 2022
03
Who does the Valuation
Merchant Banker (In most cases)
04
When valuation is required
At the time of the Issue/Transfer of Securities
Recent Articles
Can’t Find What You’re Looking For?
Get in touch with one of our professionals! We're here to help you with any questions or specific needs you may have.
Contact Us
Join our newsletter to stay up to date on latest notification and updates.
knowledge hub
Copyright © 2024 Corporate Valuations | All rights reserved.