In short: If your Jaipur company is issuing shares, granting ESOPs, restructuring family shareholding, going through an NCLT scheme, or facing insolvency proceedings, the law usually requires a valuation report from a professional holding the specific credential for that transaction — not simply “a valuer.” CA Murli Chandak is registered with the Insolvency and Bankruptcy Board of India (IBBI) as a Registered Valuer for Securities or Financial Assets (Registration No. IBBI/RV/07/2021/14408), delivering Companies Act valuation reports, ESOP fair value workings, and coordinated engagements involving a Merchant Banker’s certificate wherever the law specifically calls for one.
Contents
- 1. The Registered Valuer Framework
- 2. How to Verify a Registered Valuer Before You Engage One
- 3. When a Valuation Is Legally Required in Jaipur
- 4. Who Certifies What: Registered Valuer, Merchant Banker or CA
- 5. Structuring the Engagement: A Step-by-Step Process
- 6. Reviewing the Draft Report Against Rule 8(3)
- 7. Jaipur’s Regulatory Map
- 8. Standards and Code of Conduct
- 9. Documents to Keep Ready
- 10. Common Mistakes When Engaging a Valuer in Jaipur
- 11. Why Choose CA Murli Chandak
- 12. Frequently Asked Questions
- Speak to CA Murli Chandak
1. The Registered Valuer Framework
The Registered Valuer (RV) framework was established under Section 247 of the Companies Act, 2013, and governed in detail by the Companies (Registered Valuers and Valuation) Rules, 2017, notified on 18 October 2017. Since 1 February 2019, only a person registered with the IBBI as a Registered Valuer may conduct valuations required under the Companies Act, 2013 or the Insolvency and Bankruptcy Code, 2016.
The Rules recognise three asset classes: Land and Building, Plant and Machinery, and Securities or Financial Assets. A valuer registered for one class is not permitted to value assets outside it. CA Murli Chandak is registered with IBBI for the Securities or Financial Assets class — the class that covers shares, business interests and financial instruments, which is what most Companies Act, ESOP and business valuation engagements require.
Jaipur’s companies come from genuinely different backgrounds — gems and jewellery export houses built around Johari Bazaar and the Sitapura export zone, hospitality and heritage-tourism groups, Mahindra World City units, and a growing base of Rajasthan-headquartered startups. What determines whether a valuation report actually holds up in any of these cases is not the sector a company sits in. It is whether the valuer is genuinely and correctly registered, whether the engagement was properly scoped, and whether the report itself satisfies what the law specifically requires.
2. How to Verify a Registered Valuer Before You Engage One
Before instructing anyone who describes themselves as a “registered valuer,” the following five checks take only a few minutes and can prevent a report from being rejected later.
- Search the IBBI register. The IBBI registered valuer directory lists every valuer by name, showing the registration number, asset class, date of registration and current status. CA Murli Chandak’s registration — IBBI/RV/07/2021/14408, Securities or Financial Assets, registered 25 October 2021 — is searchable there directly.
- Match the asset class to your actual requirement. This is the most frequent point of confusion in Jaipur engagements. The three IBBI asset classes are Land and Building, Plant and Machinery, and Securities or Financial Assets — none of which is “inventory” or gemstone appraisal in the jeweller’s sense. A share or business valuation for a gems and jewellery export house, a hospitality group or a startup falls under Securities or Financial Assets; the underlying gemstone or finished-goods inventory is typically appraised separately, and that appraisal feeds into the balance sheet the Registered Valuer relies on rather than being part of the RV engagement itself.
- Confirm the Registered Valuers Organisation (RVO) membership. Every Registered Valuer must be a member of exactly one RVO, which maintains its own public register and disciplinary record.
- Check independence. Under the Model Code of Conduct at Annexure-I to the 2017 Rules, a valuer with a personal or associate connection to your company, or one offering a discounted or success-linked fee, is not permitted to take the assignment. A valuer may not charge a success fee, and may not engage in what the Code calls “mandate snatching” or convenience valuations.
- Get the scope in writing before work begins. A short engagement letter setting out the purpose, the asset class, the fee and the standard to be followed protects both sides and is expected practice under the Code of Conduct — not an optional formality.
3. When a Valuation Is Legally Required in Jaipur
The following situations recur across Jaipur companies regardless of sector, along with the law that governs each and who is permitted to certify it.
| Situation | Governing Law | Who Certifies |
|---|---|---|
| Preferential allotment of shares (funding round) | Section 62(1)(c) read with Rule 13, Companies Act | Registered Valuer (SFA) |
| Private placement of securities | Section 42 read with Rule 14, Companies (Prospectus and Allotment of Securities) Rules, 2014 | Registered Valuer (SFA) |
| Setting the ESOP exercise price | Section 62(1)(b) read with Rule 12, Companies Act | Independent fair value; an RV report is standard practice |
| Family or related-party share transfer not at arm’s length | Section 56, Income-tax Act (mandatory if also structured as a Section 62(1)(c) allotment) | Registered Valuer (SFA) |
| Scheme of arrangement, merger or demerger | Sections 230 and 232, Companies Act | Registered Valuer (SFA) |
| Purchase of minority shareholding (90%+ acquirer) | Section 236, Companies Act | Registered Valuer (SFA) |
| IBC fair value and liquidation value | Regulations 27 and 35, IBBI (CIRP) Regulations, 2016, as amended in 2026 | Two sets of Registered Valuers per asset class (one set suffices for an MSME corporate debtor, unless the CoC directs otherwise) |
| Issue of shares to a non-resident investor (FDI) | Rule 21, FEMA (Non-Debt Instruments) Rules, 2019 | Chartered Accountant, SEBI-registered Merchant Banker, or practising Cost Accountant (not a Registered Valuer) |
| ESOP perquisite fair market value on exercise | Rule 15(6), Income-tax Rules, 2026, read with Section 17(1)(d), Income-tax Act, 2025 | SEBI-registered Category-I Merchant Banker (not a Registered Valuer) |
| FMV of unquoted equity shares (below-value transfer) | Rule 57, Income-tax Rules, 2026 | NAV formula prescribed by Rule 57; feeds the Merchant Banker or accountant certification for the transaction |
One misconception warrants direct correction: a capital reduction under Section 66 does not require a Registered Valuer’s report. The Supreme Court held on 10 March 2026 that a Section 66 reduction can proceed by special resolution and Tribunal confirmation without a valuer’s report, since Parliament expressly mandated valuation in Sections 62, 230, 232 and 236 of the Act, and conspicuously not in Section 66.
4. Who Certifies What: Registered Valuer, Merchant Banker or CA
A Registered Valuer’s report and a Merchant Banker’s certificate serve different statutory purposes and are not interchangeable, even when the underlying numbers are similar. CA Murli Chandak issues the Registered Valuer certifications below directly, and coordinates a Merchant Banker or Chartered Accountant within the same engagement wherever a transaction needs one.
| Certificate Needed | Who Issues It | Governs |
|---|---|---|
| Companies Act share allotment or scheme | Registered Valuer (SFA) | Sections 62, 230, 232, 236 |
| IBC fair value / liquidation value | Registered Valuer(s), asset-class matched | CIRP Regulations 27 and 35 |
| Income-tax perquisite FMV on ESOP exercise | Category-I Merchant Banker | Rule 15(6), Income-tax Rules, 2026 |
| FEMA share pricing (FDI / ODI) | Chartered Accountant, SEBI Merchant Banker, or practising Cost Accountant | Rule 21, FEMA (NDI) Rules, 2019 |
| Option fair value for accounting purposes | Independent valuer using an option-pricing model | Ind AS 102 |
If your Jaipur company needs a Companies Act valuation, an ESOP fair value working, or help working out which certificate a transaction requires, a short call with CA Murli Chandak is the most efficient way to confirm scope before any engagement begins.
5. Structuring the Engagement: A Step-by-Step Process
A defensible valuation report depends less on the final number and more on how the engagement itself is conducted. The process below is what an engagement with CA Murli Chandak looks like, from first call to signed report.
- Scoping call. Confirm the purpose of the valuation, the governing law, the valuation date, and the timeline before anything is committed to writing.
- Engagement letter. Sets out the scope, the asset class, a fixed fee (never success-linked, per the Code of Conduct), the standard to be followed, and what falls outside scope.
- Data checklist. Audited financial statements for the last 3 to 5 years, management projections, the current capitalisation table, the Memorandum and Articles of Association, related-party disclosures, and any prior valuation reports.
- Business review. A management discussion and business walkthrough, conducted remotely by default, covering the company’s industry positioning and the specific transaction driving the valuation.
- Methodology selection. DCF for going-concern earning capacity; NAV weighted in where the balance sheet carries material property or inventory; comparable company or precedent-transaction multiples where genuine comparables exist; scorecard or risk-adjusted approaches for pre-revenue companies without a projectable cash-flow history.
- Draft report review. Checked internally against the twelve disclosures Rule 8(3) requires (Section 6 below) before it goes out in draft.
- Delivery. Typically 5 to 10 working days from receipt of complete data. For IBC assignments, this stage also involves coordination with any other asset-class valuer in the set, and compliance with the report-format and VRIN requirements introduced by Circular IBBI/RV/103/2026.
6. Reviewing the Draft Report Against Rule 8(3)
Rule 8(3) of the 2017 Rules sets out twelve items every valuation report must state. Each one exists because a reviewer — an auditor, an Assessing Officer, a Resolution Professional, or a diligence team — will specifically test for it. CA Murli Chandak checks every report against this list before it goes out in draft.
| Rule 8(3) Clause | What It Requires | What a Reviewer Tests |
|---|---|---|
| (a) | Background information of the asset being valued | Description matches the audited financials |
| (b) | Purpose of valuation and appointing authority | Report matches the actual transaction it supports |
| (c) | Identity of the valuer and any other experts involved | Registration number and asset class are correct and current |
| (d) | Disclosure of valuer interest or conflict, if any | Genuine independence from the company |
| (e) | Date of appointment, valuation date and date of report | Valuation date is appropriate to the transaction, with no backdating |
| (f) | Inspections and/or investigations undertaken | What work was actually performed |
| (g) | Nature and sources of information used or relied upon | Traceable to audited financials and management data |
| (h) | Procedures adopted and valuation standards followed | Methodology is named and the standard is cited |
| (i) | Restrictions on use of the report, if any | Report is not being relied on outside its stated purpose |
| (j) | Major factors taken into account during the valuation | The actual value drivers are identified |
| (k) | Conclusion | The value itself is clearly and unambiguously stated |
| (l) | Caveats, limitations and disclaimers | Not used to limit the valuer’s responsibility for the report |
7. Jaipur’s Regulatory Map
Which office handles a Jaipur company’s filing depends on the forum, and jurisdiction has shifted over the last two years.
- ROC Jaipur — Corporate Bhawan, G/6-7, Second Floor, Residency Area, Civil Lines, Jaipur 302001. Covers company filings for the whole of Rajasthan, and was not among the Registrars split in the MCA’s February 2026 field-office reorganisation.
- RD North-Western Region — headquartered at Ahmedabad, covering Rajasthan together with Gujarat, Madhya Pradesh and Dadra & Nagar Haveli, effective from 16 February 2026.
- NCLT Jaipur Bench — established under Notification S.O. 3145(E) and operational from 1 July 2018, with jurisdiction over the whole of Rajasthan (transferred out of the Delhi Principal Bench). Located at Corporate Bhawan, Residency Area, Civil Lines, Jaipur — the same building as ROC Jaipur.
- NCLAT — appeals from NCLT Jaipur go to the National Company Law Appellate Tribunal in New Delhi.
CA Murli Chandak prepares Jaipur reports with this regulatory map in mind, whichever forum ultimately relies on them.
8. Standards and Code of Conduct
The Central Government has not yet notified valuation standards under Rule 18. Until it does, the proviso to Rule 8(1) governs: a valuer must follow internationally accepted valuation standards, or standards adopted by their Registered Valuers Organisation. For any valuation under the Insolvency and Bankruptcy Code specifically, International Valuation Standards became mandatory under Circular IBBI/RV/93/2026 dated 1 April 2026.
A further layer applies to IBC assignments: Circular IBBI/RV/103/2026 dated 15 June 2026 sets out 23 mandatory items every IBC valuation report must contain, requires a Valuation Report Identification Number (VRIN) on every page, and prescribes standardised formats by asset class.
On caveats, the IBBI’s Guidelines on Use of Caveats, Limitations and Disclaimers, in force for valuations completed on or after 1 October 2020, work alongside the Model Code of Conduct’s bar on disclaiming liability for a valuer’s own expertise. Records of every assignment must be kept for at least three years under Rule 7(f).
9. Documents to Keep Ready
CA Murli Chandak typically requests the following before starting a Jaipur engagement:
- Audited financial statements for the last 3 to 5 years
- Management projections and business plan
- Current capitalisation table and share transfer records
- Memorandum and Articles of Association
- Related-party transaction disclosures
- Any prior valuation report on the same company
- For CIRP assignments: information memorandum inputs and asset registers
10. Common Mistakes When Engaging a Valuer in Jaipur
These are exactly the mistakes CA Murli Chandak’s verification-first process (Section 2 above) is designed to avoid.
| Mistake | Consequence |
|---|---|
| Skipping the IBBI verification step and accepting a self-description of “registered valuer” at face value | The report may not hold up on Companies Act or IBC scrutiny if the registration does not exist or has been suspended |
| Assuming the Securities or Financial Assets registration covers gemstone or finished-jewellery appraisal | It does not — that is a separate specialism, and confusing the two delays the actual share or business valuation |
| Proceeding without a written engagement letter | Scope disputes later, with no documented basis for what was agreed |
| Using a Registered Valuer’s report for the income-tax perquisite FMV on ESOP exercise | Rule 15(6) requires a Category-I Merchant Banker for this specific certification; TDS computed on an RV-based FMV can be challenged |
| Citing repealed provisions (old Rule 3(8), old Section 56(2)(x), Rule 11UA) in a report dated after 1 April 2026 | The report cites law no longer in force; a reviewer or diligence team will flag it |
| Treating a family or related-party share transfer as an informal matter needing no valuation | Can trigger unplanned Section 56 income-tax exposure, and a Section 62(1)(c) Registered Valuer requirement if structured as an allotment |
11. Why Choose CA Murli Chandak
Section 2 above set out how to verify a Registered Valuer before engaging one. Run CA Murli Chandak through the same checklist:
- Registration checks out. IBBI/RV/07/2021/14408, Securities or Financial Assets, since 25 October 2021 — searchable directly on the IBBI register, not just asserted.
- Asset class matches what a Jaipur share or business valuation needs. No referral to a separate valuer, and no risk of a report being challenged for falling outside the registered class.
- An audit background, not just a valuation background. Formerly Partner at a chartered accountancy firm, covering statutory, concurrent and asset audits, due diligence and forensic work — the same kind of scrutiny a report has to survive once it is filed.
- A track record against exactly that scrutiny. 300+ valuations across 7+ countries; 15+ purchase price allocations under Ind AS 103 (1 under ASC 805); 30+ impairment tests under Ind AS 36 (1 under ASC 350); reports defended before Big Four audit teams.
- Coordinated, not fragmented. Debt and equity valuation for 10+ Indian funds brings an investor’s-eye view; where a Jaipur transaction also needs a Merchant Banker or Chartered Accountant certificate, that is arranged within the same engagement rather than a separate referral.
12. Frequently Asked Questions
Q1. How do I verify that a Registered Valuer in Jaipur is genuinely IBBI-registered?
A: Search the IBBI registered valuer directory by name. It shows the registration number, asset class, date of registration and current status. CA Murli Chandak’s registration number is IBBI/RV/07/2021/14408, for the Securities or Financial Assets class.
Q2. Does a Registered Valuer for Securities or Financial Assets value gemstones or jewellery inventory?
A: No. The Securities or Financial Assets class covers shares, business interests and similar financial assets, not gemstone appraisal, which is a separate specialism. A gems and jewellery export house needing a share or business valuation engages an SFA-class Registered Valuer; the inventory itself is typically appraised separately, and that appraisal feeds into the balance sheet the Registered Valuer relies on.
Q3. Is a Registered Valuer’s report enough for an ESOP grant in Jaipur?
A: It depends on the stage. Setting the exercise price under Section 62(1)(b) is usually supported by an independent fair value, commonly a Registered Valuer’s report. But the fair market value used to compute the income-tax perquisite on exercise, under Rule 15(6) of the Income-tax Rules, 2026, must come from a Category-I Merchant Banker — a Registered Valuer’s report does not satisfy that specific requirement.
Q4. Does a Section 66 capital reduction require a Registered Valuer’s report?
A: No. The Supreme Court held on 10 March 2026 that a capital reduction under Section 66 can proceed by special resolution and Tribunal confirmation without a valuer’s report, since valuation is expressly mandated elsewhere in the Companies Act (Sections 62, 230, 232 and 236) and conspicuously not in Section 66.
Q5. How many Registered Valuers does an insolvency case in Jaipur need?
A: Under the CIRP Regulations as amended in 2026, two sets of Registered Valuers are appointed, one per relevant asset class in each set, with a coordinating valuer designated in each set. Where the corporate debtor qualifies as an MSME, a single set suffices unless the Committee of Creditors directs otherwise in writing.
Q6. Which tribunal hears NCLT matters for a Jaipur company?
A: The NCLT Jaipur Bench, which has held jurisdiction over the whole of Rajasthan since it began functioning on 1 July 2018. Appeals go to the NCLAT in New Delhi.
Q7. Where is the Registrar of Companies for a Jaipur company?
A: ROC Jaipur, at Corporate Bhawan, Residency Area, Civil Lines, Jaipur, covers company filings for the entire state of Rajasthan.
Q8. How long does a share valuation take?
A: CA Murli Chandak typically delivers within 5 to 10 working days of receiving complete data — audited financials, projections, the cap table and the Memorandum and Articles of Association. Faster turnaround is available for time-sensitive transactions by prior arrangement.
Q9. Can the same report be used for a Companies Act allotment and an income-tax filing?
A: No. A Registered Valuer’s report satisfies the Companies Act requirement. A separate certificate from a Category-I Merchant Banker, for ESOP perquisites, or the Rule 57 NAV computation, for below-value transfers, satisfies the specific income-tax requirement. The two can be coordinated within a single engagement but remain separate documents.
Q10. What valuation methods apply to a pre-revenue Jaipur startup?
A: Pre-revenue companies without an established earnings history are typically valued using scorecard, Berkus or risk-adjusted NPV approaches rather than a conventional DCF, since DCF depends on projectable cash flows a pre-revenue business does not yet have.
Q11. Does a family-owned Jaipur business need a Registered Valuer for an internal share transfer?
A: Where the transfer is not at arm’s length, it can trigger income-tax exposure under Section 56, and a formal valuation is advisable to support the pricing. Where the transfer is structured as a preferential allotment under Section 62(1)(c), a Registered Valuer’s report becomes mandatory rather than merely advisable.
Q12. What documents does a Registered Valuer need to start?
A: Audited financial statements for the last 3 to 5 years, management projections, the current capitalisation table, the Memorandum and Articles of Association, and a description of the business and its related-party transactions.
Q13. Can a valuer use caveats to limit their responsibility for a report?
A: No. Under the Model Code of Conduct and the IBBI’s Caveats, Limitations and Disclaimers Guidelines, 2020, caveats may explain the limitations a valuer faced during the assignment, but cannot be used to disclaim liability for the valuer’s own expertise or duty of care.
Speak to CA Murli Chandak
Whether you need a Companies Act share valuation, an ESOP fair value working, or help confirming which certificate a specific Jaipur transaction requires, a preliminary discussion with CA Murli Chandak covering the purpose, the applicable law, the timeline and the data available is available at no charge and typically takes 30 minutes.
CA Murli Chandak — FCA | IBBI-Registered Valuer (Securities or Financial Assets), IBBI/RV/07/2021/14408
Website: murlichandak.com
Phone: +91 99985 39902
Email: murlichandak@murlichandak.com
More on CA Murli Chandak’s background is available on the About page.
Statutory positions referred to above were verified against primary sources on 10 August 2026. This article is general information, not advice on any specific transaction; specialist legal or tax advice should be taken before acting on any of it.
