somesh@sschandak.com
Thane | Mumbai | Bangalore
Mon-Sat: 10AM-7PM

Cross-border share transactions carry pricing guardrails: what a non-resident may pay coming in, and what price governs going out, is bounded by FEMA's pricing guidelines and evidenced by a valuation. The certificate is short; the working papers behind it are what an AD bank or the RBI's reporting system will lean on.

When this service is typically required

  • Foreign investment is coming in by fresh issue (FC-GPR reporting follows)
  • Shares are moving between a resident and a non-resident (FC-TRS pricing support)
  • A rights issue, ESOP exercise by non-resident employees, or transfer needs pricing evidence — context in the valuation guide
  • An AD bank has asked for a valuation certificate per the applicable guidelines
  • Annual FLA reporting or diligence has surfaced pricing questions — FLA return basics

Indicative scope

  • Identification of the applicable pricing guideline for the specific transaction and instrument
  • Valuation per an internationally accepted pricing methodology, documented
  • Certificate/report in the form the AD bank requires, with working papers
  • Coordination with the company's FC-GPR/FC-TRS filing team on figures and dates

Key points at a glance

ItemPosition
Inbound issue/transfer to non-residentPrice not below the guideline valuation (floor)
Outbound transfer to residentPrice not above the guideline valuation (cap)
MethodologyInternationally accepted pricing methodology, applied and documented
InterfaceValuation feeds FC-GPR/FC-TRS timelines — dates matter

Deliverables

The valuation certificate/report in AD-bank-ready form, the methodology working papers, and a transaction note aligning the valuation date with the reporting timeline.

Information and documents generally required

Transaction documents (SSA/SPA/board resolutions), financials and projections, cap table, prior valuations if any, and the AD bank's specific format requirements where communicated.

Engagement process

01 · Transaction mappingDirection, instrument, parties, guideline identified.
02 · Engagement letterScope, capacity, timeline against the reporting clock.
03 · Valuation & certificateMethod applied; certificate issued with papers.
04 · Filing supportFigures coordinated with the reporting filings.

Client responsibilities, assumptions and reliance

Transaction structure, documentation and filings are the company's (with its legal/CS team); the valuation relies on the records provided and speaks as on its date for the stated transaction.

Scope exclusions

FEMA legal opinions, compounding proceedings, and the FC-GPR/FC-TRS filings themselves (available separately). Where a purpose requires a different certifying professional under the applicable regulation, that is identified at scoping.

Frequently asked questions

Is one valuation enough for both FEMA and income-tax?

Sometimes the same analysis serves both, but the frameworks differ in method menus and direction (floor vs cap). The engagement documents each applicable position rather than assuming one certificate fits all.

The AD bank wants its own format. Do you match it?

Yes — formats vary by bank; the certificate is issued to the bank's requirement with the same underlying working papers.

We missed the reporting timeline. Does valuation fix that?

No — valuation evidences pricing; delayed reporting has its own consequences (late submission fees/compounding), which sit with the filing workstream. Flagging it early is part of the transaction note.

Can the price differ from the valuation?

The parties may price within what the guideline direction permits (above the floor coming in; up to the cap going out). The certificate establishes the boundary, not the negotiation.

Is acceptance by the bank or RBI assured?

No professional can assure regulatory acceptance; the deliverable is a guideline-consistent, documented valuation that answers the questions banks actually ask.

Discuss this requirement

The applicable scope, documentation, professional responsibilities and timelines are agreed in an engagement letter before commencement.

FDI & FC-GPR ComplianceFLA Return FilingStartup Valuation (11UA)Request a Scope Discussion

This page describes the service in general terms as on 6 August 2026 and is not professional advice or an assurance of any outcome. Registrations, filings, refunds and departmental outcomes depend on facts and the concerned authority. Figures and due dates change; verify current positions before acting.

FEMA calendar alertThe FLA return for FY 2025-26 fell due on 15 July 2026 — companies and LLPs with FDI/ODI that missed it should file with late submission fee before RBI follow-up.FLA return guide →
Key due dates at a glance — FY 2026-27
ComplianceDueNote
FLA return (RBI)15 July (annual)All entities with FDI/ODI on books
FC-GPR30 days from allotmentFor fresh foreign investment
Valuation report (Rule 11UA / FEMA)Before issue price is fixedMethod and valuer depend on route
ESOP: board/valuation/PAS-3 chainEvent-basedPerquisite TDS on exercise
DPIIT recognitionAnytime (before benefits)Needed for 80-IAC and angel-tax relief

Dates as generally applicable on 15 July 2026; extensions/notifications can change them — confirm current dates before relying.

What's Included

  • Identification of the applicable pricing guideline for the specific transaction and instrument
  • Valuation per an internationally accepted pricing methodology, documented
  • Certificate/report in the form the AD bank requires, with working papers
  • Coordination with the company's FC-GPR/FC-TRS filing team on figures and dates

Our Process

1
Transaction mapping

Direction, instrument, parties, guideline identified.

2
Engagement letter

Scope, capacity, timeline against the reporting clock.

3
Valuation & certificate

Method applied; certificate issued with papers.

4
Filing support

Figures coordinated with the reporting filings.

Get Started

Have questions about this service? Contact us for a free consultation.

Book Consultation WhatsApp Us

Related Services

Ready to Get Started?

Let our expert team help you with professional CA services tailored to your needs.

Schedule a Meeting