FDI pricing guidelines revised: listed follow SEBI pricing, unlisted require internationally accepted arm's length valuation for exit. For listed companies, issuance and transfer of equity and compulsorily convertible instruments shall follow SEBI pricing norms and optionality exits permit market price exit subject to lock in without assured return. For unlisted companies, issuance and transfer of equity and compulsorily convertible instruments must be priced on an arm's length basis using any internationally accepted pricing methodology, certified by a chartered accountant or SEBI registered merchant banker, ensuring no assured exit price and exit at a fair price subject to lock in. Companies must disclose valuation details, methodology and certifying agency in the financial year of the transaction.
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Provisions expressly mentioned in the judgment/order text.
FDI pricing guidelines revised: listed follow SEBI pricing, unlisted require internationally accepted arm's length valuation for exit.
For listed companies, issuance and transfer of equity and compulsorily convertible instruments shall follow SEBI pricing norms and optionality exits permit market price exit subject to lock in without assured return. For unlisted companies, issuance and transfer of equity and compulsorily convertible instruments must be priced on an arm's length basis using any internationally accepted pricing methodology, certified by a chartered accountant or SEBI registered merchant banker, ensuring no assured exit price and exit at a fair price subject to lock in. Companies must disclose valuation details, methodology and certifying agency in the financial year of the transaction.
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