The Reserve Bank of India (“RBI”) has vide its circular dated July 15, 2014, liberalized the pricing guidelines to be followed by an unlisted company for issue and transfer of securities with and without optionality clause. In a nutshell, the pricing of securities is now required to be done as per any internationally accepted pricing methodology for valuation of shares on arm’s length basis instead of discounted cash flow method.
Liberalisation of FDI Pricing Norms
Updated: Jan 18
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