TRANSFER OF SHARES TO NRI- VALUATION

[Richa Goyal]

Ours is a new company and no work has been done yet. one shares holder has transferred shares to NRI at face value . Form FC TRS has been filed. Query from RBI is -" please submit valuation report from SEBI registered valuer".

Question : Do we require to submit a share valuation report from a SEBI registered valuer when the company has been newly incorporated and there are no business conducted yet by the company.

[Rajendra Prasad]

Dear Richa Goyal,

Please submit balance sheet of the company as on the date of transfer and explain the same . They may accept it.

[Richa Goyal]

thanks ... shall do the same

AI Summary

Share valuation requirement for NRI transfer: balance sheet and explanation may substitute for SEBI valuer report in compliance.
Whether a SEBI registered valuer report is required for an NRI share transfer when the company is newly incorporated with no business: RBI queried the FC-TRS and requested a SEBI valuer report. The advised response was to submit the company's balance sheet as of the transfer date with explanatory notes to substantiate the transfer consideration, seeking RBI acceptance in lieu of a formal valuation report.