What is an IBBI-registered valuer and when is one legally required?An IBBI-registered valuer has cleared the IBBI valuation examination and holds a Certificate of Practice under the Companies (Registered Valuers and Valuation) Rules, 2017. Their report is legally required for: valuations under the Companies Act (including ESOP valuation, scheme of arrangement, and certain M&A-related valuations), IBC proceedings (CIRP asset valuation), and is the standard expected for FEMA pricing compliance. An unregistered person’s valuation has no standing under these regulations.

An IBBI-registered valuer has cleared the IBBI valuation examination and holds a Certificate of Practice under the Companies (Registered Valuers and Valuation) Rules, 2017. Their report is legally required for: valuations under the Companies Act (including ESOP valuation, scheme of arrangement, and certain M&A-related valuations), IBC proceedings (CIRP asset valuation), and is the standard expected for FEMA pricing compliance. An unregistered person’s valuation has no standing under these regulations.

What is the difference between Enterprise Value and Equity Value?

Enterprise Value (EV) represents the value of the entire business — including debt. Equity Value is the residual for shareholders, calculated as EV minus net debt. When buying a company, you typically negotiate on EV (because you’re acquiring the business with its liabilities) and then the equity consideration follows after adjusting for actual debt at closing. FEMA pricing norms for FDI share issuance are based on per-share Equity Value — not EV.

What is Purchase Price Allocation and when does it apply?

PPA is required under IND-AS 103 whenever a company acquires a controlling stake in another business. The purchase consideration must be allocated across all identifiable assets and liabilities of the acquired business at fair value — including intangibles that were never on the seller’s balance sheet (customer relationships, brand, technology, non-competes). Any excess consideration over identified net assets becomes goodwill. PPA must be finalised within 12 months of acquisition date.

Is valuation required for transfers of shares between two Indian residents?

Not under FEMA — that applies to cross-border transactions. However, for related-party share transfers between Indian residents, Income Tax Act’s transfer pricing provisions require arm’s-length pricing documentation. For transfers involving listed companies, SEBI’s insider trading and disclosure norms apply. For IBC proceedings, valuation is mandatory regardless of buyer/seller nationality.

How is goodwill treated under IND-AS after an acquisition?

Under IND-AS 103, goodwill is not amortised. Instead, it is tested annually for impairment under IND-AS 36. The company must compare the carrying amount of the cash-generating unit (CGU) to its recoverable amount (higher of value in use and fair value less costs to sell). If the recoverable amount falls below the carrying amount, an impairment loss is recognised. An independent Registered Valuer’s fair value assessment supports this annual impairment test.

What valuation is needed for ESOP accounting under IND-AS 102?

IND-AS 102 (Share-based Payment) requires that stock options granted to employees are measured at fair value on the grant date, using an option pricing model — typically Black-Scholes or a binomial model. The fair value inputs include current share price, exercise price, risk-free rate, expected volatility (historical or implied), dividend yield, and expected option life. This fair value is expensed over the vesting period. A Registered Valuer provides the option valuation report.

How does valuation support dispute resolution in India?

Valuation disputes arise in shareholder disagreements, breach of contract, family partition, and insolvency proceedings. An independent valuation report prepared to ICAI Standards on Internal Audit (SIAs) and IVS — with documented methodology, explicit assumptions, sensitivity analysis, and cross-checks — is significantly more defensible before Company Law Tribunals, courts, and arbitration panels than an internally prepared estimate. Sapient prepares valuation reports specifically structured for legal proceedings.

Profile

Valuation Advisory Services in India

Name: Valuation Advisory Services in India
Brand: Sapient Services
SKU: VASII
Rating: 4.6 (989 reviews)

Reviewed by Devendra Kumar Malhotra, Registered Valuer | Sapient Services Pvt. Ltd., New Delhi | Last reviewed: October 2026

Valuation advisory services in India cover the independent valuation of businesses, shares, property, plant and machinery, intangible assets and financial instruments for a stated legal or commercial purpose. Sapient Services Pvt. Ltd. prepares these reports from New Delhi for clients across Delhi NCR and the rest of the country.

Each purpose has its own rules, and several changed in 2026 for insolvency and tax valuations. A bank, a tribunal, an auditor and a foreign investor expect different eligible valuers, valuation dates and methods, so a report built for one purpose may not meet another’s requirements.

Tell us what the report is for. We will confirm who must sign it and which standard applies.

Request a consultation: call +91 9540162888 or email valuation@sapientservices.com

Quick Answer: Valuation advisory is independent valuation work done for a defined purpose, such as a bank loan, a tribunal filing, an audit or a share issue to a foreign investor. It spans the three IBBI asset classes (securities or financial assets, land and building, plant and machinery) plus business and intangible asset work. Sapient Services Pvt. Ltd. delivers it from New Delhi. Who may sign depends on the purpose, so confirm eligibility first. Turnaround depends on the asset class and scope and is agreed at scoping.

What valuation advisory services cover

Valuation advisory is an independent opinion on what a business, security or asset is worth, with the method and assumptions written down so that a third party can test them.

In India, the Companies (Registered Valuers and Valuation) Rules, 2017 govern who may value for Companies Act purposes, and the Insolvency and Bankruptcy Board of India (IBBI) regulates registered valuers. Section 247 of the Companies Act, 2013 requires a registered valuer wherever the Act calls for a valuation.

Valuation advisory is the wider category. Business valuation is one service inside it and has its own page. This page covers the full range and links to each specialist page.

A report is more likely to pass review when the valuer is eligible, the method fits and the assumptions are on paper. The bank, auditor or regulator still makes the call. Our asset valuation guide explains the basic methods.

Who needs valuation advisory services

Most assignments start with a request from a bank, auditor, regulator or counterparty. Typical clients:

Companies issuing or transferring shares to or from a non-resident investor
Unlisted companies making a preferential allotment, or planning a merger, demerger or restructuring
Banks, NBFCs and asset reconstruction companies valuing collateral and non-performing assets
Resolution professionals and liquidators appointing valuers under the IBC, 2016
Finance teams at listed companies and PSUs preparing Ind AS accounts that need purchase price allocation, impairment testing or fair values
Promoters, partners, private equity and venture capital investors pricing a deal, an entry, an exit, a buyout or a family settlement
Group companies that need arm’s length evidence for related party transactions
Startups and employers designing ESOP and sweat equity schemes or pricing a funding round

If a bank or auditor has asked for a valuation report, first check who may sign it for that purpose. A report from an ineligible valuer may be rejected or need rework.

Valuation purposes and who can sign the report

Purpose	Who can certify the valuation	Governing rules
FEMA pricing of unlisted shares, on issue and on transfer	Chartered Accountant, SEBI registered Merchant Banker or practising Cost Accountant	FEMA Non-debt Instruments Rules, 2019 and RBI directions
Companies Act, 2013 valuations, such as preferential allotment or non-cash consideration	IBBI registered valuer	Section 247, with the triggering section such as 62(1)(c) or 192
Insolvency: fair value and liquidation value in a CIRP before the NCLT	Two sets of IBBI registered valuers appointed by the resolution professional, one valuer per asset class in each set	IBC, 2016; IBBI CIRP Regulations (amended 2026); IBBI guidelines of June 2026
Ind AS accounts: purchase price allocation, impairment, fair value measurement	Management, usually with an external valuer, reviewed by the auditor	Ind AS 103, 36, 38, 40, 109 and 113
Tax value of an ESOP perquisite on unlisted equity shares	SEBI registered Category I Merchant Banker	Income-tax Rules, 2026 (Rule 15)
Income tax fair market value of shares on a transfer or issue	Depends on the provision under the Income-tax Rules	Income-tax Act, 2025 and Income-tax Rules, 2026
Open offer price under the takeover code for indirect or non-cash acquisitions	Independent registered valuer	SEBI SAST Regulations, as amended in December 2025
Sweat equity of a listed company for know-how or IP	Independent registered valuer	SEBI SBEB and Sweat Equity Regulations, as amended from 2 January 2026
Bank collateral, loan security and NPA valuation	Valuer empanelled by the lender	The lender’s valuation policy

Fairness opinions on listed company mergers come from a SEBI registered Merchant Banker. IPO valuation sits on our IPO advisory pages.

Valuation advisory services we provide

Valuation for business and share transactions

Listed and unlisted shares, ESOPs and sweat equity, convertible and preference instruments, and businesses in mergers, acquisitions and restructurings. See our business valuation services.

Valuation for land and buildings

Land, offices, factories, warehouses, hotels and residential property, valued for lending, accounting and transactions. See valuation of immovable property.

Valuation for plant and equipment

Industrial plant, equipment, IT hardware and construction machinery, valued by inspection, replacement cost and market evidence as the asset, data and scope allow. See plant and machinery valuation.

Valuation for brands, technology and other intangibles

Brands, customer relationships, technology, non-compete agreements and goodwill, valued alone or inside a purchase price allocation. See valuation of intangible assets.

Valuation for securities and financial instruments

Debentures, bonds, preference shares, security receipts, structured products, derivatives and AIF portfolio holdings. See valuation of financial assets.

Valuation for insolvency proceedings

Fair value and liquidation value in a CIRP, and realisable value of assets in liquidation. See valuation for the Insolvency and Bankruptcy Code.

Valuation for lenders and stressed accounts

Collateral valuation for mortgage, project and equipment finance and refinancing, and valuation of distressed or non-performing accounts and loan portfolios for banks, NBFCs and asset reconstruction companies. See valuation of stressed assets.

Valuation for Ind AS reporting and impairment

Purchase price allocation, goodwill impairment and fair values in Ind AS balance sheets. See valuation for financial reporting and impairment testing.

Valuation for insurance and aircraft

Reinstatement value for insurance and valuation of aircraft assets. See reinstatement value and aviation valuation.

Second opinions and dispute support

Second opinions on an existing valuation report and its financial model, and expert valuation reports for litigation, arbitration, shareholder disputes and family settlements.

Valuation methods and when each is used

Asset	Common approaches	Where each fits
Business and equity	Discounted cash flow, trading and transaction multiples, net asset value	DCF for going concerns with reliable projections. Multiples as a cross-check. NAV for holding and asset-heavy companies.
Immovable property	Sales comparison, income capitalisation, depreciated replacement cost, residual method	Sales comparison where deals are observable. Income for rented property. Residual for development land.
Plant and machinery	Replacement cost less depreciation, market approach	Cost approach where market data is thin. Market approach where second hand prices exist.
Intangible assets	Relief from royalty, multi period excess earnings, cost approach	Royalty method for brands and technology. Excess earnings for customer relationships where the data supports it.

In a DCF, the discount rate, the cash flow forecast and the terminal value all move the result, so ask the valuer to show each. FEMA pricing needs an internationally accepted method. DCF is the usual choice, but the rule does not name it as the only one.

How our valuation process works

Scoping. We fix the purpose, valuation date, basis of value and the report’s reader.
Valuer and standard. We match asset class and purpose to an eligible registered valuer.
Information request. You share financials, projections, asset registers or property documents.
Inspection and analysis. Where the scope needs it, we inspect property and machinery and review projections with management.
Draft review. We walk you through assumptions and sensitivities before signing.
Final report and support. You receive the signed report, and we answer the reader’s queries.

We follow the Companies (Registered Valuers and Valuation) Rules, 2017 and the standards that apply to your purpose. Steps follow the agreed scope, and turnaround is agreed at scoping.

Request a project estimate: valuation@sapientservices.com | +91 9540162888

What a valuation report contains

These items follow Rule 18 of the Registered Valuers Rules.

Background of the asset, purpose of the valuation and the appointing authority
Identity of the valuer and experts, and the dates of appointment, valuation and report
Sources of information and the procedures followed
Valuation methodology and the major factors that influenced it
Conclusion of value, with caveats, limitations and disclaimers
Disclosure of the valuer’s interest or conflict, if any

Why choose Sapient Services for valuation advisory services in India

IBBI registered valuers lead the work in the asset classes they hold. Devender Kumar Malhotra, Registered Valuer, reviews the content on this page.
We start with the filing, lender or auditor that will read the report and work back to the method.
Related work sits under one roof: due diligence, M&A advisory, TEV studies and lender’s independent engineer reports.
We work from Okhla Phase II, New Delhi, and take pan-India assignments, including Delhi NCR.

Use this checklist to compare any valuer, including us:

Check before you appoint a valuer	Why it matters
Registration for the right asset class	A registered valuer may value only the classes of their registration. IBBI’s public lists show each registration and class.
Eligibility for your purpose	FEMA accepts CAs, SEBI registered Merchant Bankers and Cost Accountants. The Companies Act requires a registered valuer where it calls for a valuation.
Independence and conflicts	The model code of conduct covers independence, conflict disclosure and confidentiality of client information.

Cost of valuation advisory services in India

Cost follows the work involved:

Engagement	Factors that affect cost
Business, equity and intangibles	Entities, quality of projections, option modelling, intangibles identified, valuation dates, audit review
Immovable property	Properties and locations, size, title documents, site visits
Plant and machinery	Asset count, complexity, age and records, physical verification
IBC and stressed assets	Asset classes, locations, deadlines, physical verification

Fees are quoted per assignment after scoping. The model code of conduct bars registered valuers from charging success fees and requires fees to be transparent. Send the purpose and asset details to valuation@sapientservices.com.

Common mistakes in valuation engagements

Appointing a valuer who is not eligible for the purpose. The report may be rejected or need rework. We check eligibility at scoping.
Using one report for several purposes. FEMA, tax, the Companies Act and Ind AS each set their own valuer, date and method. A preferential allotment to a foreign investor can need a registered valuer’s report under the Companies Act and a CA or merchant banker certificate under FEMA. We list every purpose before we start.
Treating ESOP valuations as one exercise. Option fair value under Ind AS 102 and the tax value of the perquisite are separate, and a Category I Merchant Banker certifies the tax value for unlisted equity shares. We scope them separately.
Assuming a registered valuer’s report is needed for every corporate action. In Pannalal Bhansali v. Bharti Telecom (10 March 2026), the Supreme Court held that Section 66 does not itself require one for a share capital reduction. Other provisions may still call for one, so we check before we quote.
Starting late in a CIRP. The resolution professional must appoint valuers within seven days of appointment and no later than the 47th day from commencement. We confirm asset classes and site locations on the first call.

Valuation rules that changed in 2026

IBBI CIRP amendment, notified 25 February 2026: fair value is redefined, valuers are appointed in two sets with one valuer per asset class and a coordinating valuer, and they physically verify inventory and fixed assets. A third set can follow if estimates differ by 25% or more, or if the committee of creditors proposes one with recorded reasons.
IBBI circulars: the International Valuation Standards apply to IBC valuations from 1 April 2026, and a circular of 15 June 2026 sets report formats, including one for plant and machinery.
Income-tax Act, 2025, in force from 1 April 2026: for tax year 2026-27, fair market value sits in the Income-tax Rules, 2026, and ESOP perquisites in Rule 15.

Frequently asked questions

What are valuation advisory services?

Valuation advisory services are independent valuations of businesses, shares, property, plant and machinery, intangible assets and financial instruments, prepared for a legal, regulatory, accounting or transaction purpose. The report records its method and assumptions so a bank, auditor, tribunal or regulator can test the figure.

Does FEMA pricing need a registered valuer?

No. For unlisted shares, the FEMA Non-debt Instruments Rules, 2019 accept a valuation by a Chartered Accountant, a SEBI registered Merchant Banker or a practising Cost Accountant, using an internationally accepted methodology. The price cannot fall below fair value on an issue or a transfer to a non-resident, or exceed it on a transfer from one. See our FEMA valuation guide.

What is the difference between valuation advisory and business valuation?

Valuation advisory is the wider service line. It covers every asset class and purpose. Business valuation is one part, focused on companies, shares and equity interests, and has its own page: business valuation services.

How long does a valuation take?

Time depends on the asset class, site access and how quickly information arrives. Property and machinery need inspection, and a business valuation needs projections reviewed with management. We agree the timeline at scoping.

What documents are needed for a valuation?

For a business, we ask for audited financials, projections, the cap table and shareholder agreements. For property, title documents and area details. For machinery, the asset register, invoices and maintenance records, plus site access.

Which valuation standards do Indian valuers follow?

Rule 16 of the Registered Valuers Rules requires notified standards. Until they are notified, a valuer may use an internationally accepted methodology, standards adopted by a valuation professional organisation, or standards set by a regulator such as RBI or SEBI. IBC valuations use the International Valuation Standards, notified by IBBI from 1 April 2026.

What is the difference between fair value and liquidation value under the IBC?

Fair value is the estimated realisable value if the corporate debtor or its assets were sold on the insolvency commencement date between a willing buyer and seller, after proper marketing. The 2026 amendment counts synergies between assets. Liquidation value assumes the debtor is liquidated on that date.

When is purchase price allocation required?

Ind AS 103 requires it when an acquirer obtains control of a business. The consideration is allocated to identifiable assets and liabilities at fair value, including intangibles missing from the seller’s books, and the excess is goodwill. Provisional amounts can be adjusted for up to 12 months from the acquisition date, for facts that existed then.

Who values an ESOP for accounting, tax and sweat equity purposes?

For Ind AS 102, the company measures option fair value with Black-Scholes or a binomial lattice, and the SBEB regulations do not require a registered valuer. A Category I Merchant Banker certifies the tax value of the perquisite on unlisted equity shares. Sweat equity of a listed company for know-how or IP needs an independent registered valuer.

How do I check whether a valuer is registered?

IBBI publishes public lists of registered valuers and registered valuer entities, with registration numbers and the asset classes each may value. Ask for the registration number and class, and confirm both before you appoint anyone. A valuer cannot sign outside the classes of their registration.

What affects the cost of a valuation in India?

Cost depends on the asset class, the number of entities or assets, site visits, data quality and the deadline. Sapient Services quotes per assignment after scoping.

How do I request a valuation?

Call +91 9540162888 or email valuation@sapientservices.com with the asset, the purpose of the report and your deadline. We confirm the eligible valuer, the documents required and the fee estimate after scoping.

Speak to a registered valuer

Sapient Services Pvt. Ltd. is a valuation and advisory firm in Okhla Phase II, New Delhi, with IBBI registered valuers working on assignments across India. Each engagement begins with the purpose, the valuation date and the eligible valuer.

Call +91 9540162888 or email valuation@sapientservices.com with the asset, the purpose and the date you need the report. Our office is at S-15, Sapient House, Okhla Industrial Area, Okhla Phase II, New Delhi 110020. For Delhi work, see our page on valuation advisory services in Delhi.

This page gives general information and is not legal, tax or investment advice. Rules change, so confirm the current position for your case before you act. Last reviewed: October 2026.