New Delhi, June 22: The expert committee mandated to suggest guidelines for valuation of mergers, amalgamations and acquisitions has suggested that Department of Company Affairs be the sole regulator for such transactions for both listed and unlisted companies. The panel has also brought into its ambit all unlisted companies with turnover higher than Rs 500 crore and all others with Rs 30 crore turnover besides all listed companies having sales worth Rs 150 crore.
"For the present, we have recommended that DCA be the sole regulator for valuers and valuation related issues since the scope of valuation concerns both listed and unlisted companies. Multiplicity of regulators and division of powers of their functions does not promote a unified body of procedures or policy," the Shardul Shroff committee on share valuation has said in its report, which has recently been submitted to DCA.
However, the panel has suggested that one year may be allowed for disclosure of existing agreements, arrangements or by-laws from the coming into force of the applicable law or regulations on valuations.
Besides, the panel has mooted a host of norms which will guide independent valuers, valuation from whom has been made mandatory in most big-ticket cases.
Bureau Report