FEMA- Transfer of Shares

Rahul (CA Practice ) (1818 Points)

31 August 2010  

Dear All

 

Greetings.

 

I am having some confusion regarding valution of shares in case they are transferred.

 

As per the revised pricing guidelines issued by RBI in relation to transfer or issue of shares, Valuation shall be dome through Discounted Free Cash Flow ( DCF ) method.

 

I am having a confusion regarding the DCF method. I want to know that whether this DCF method is same as we had studied in MAFA. And what is the meaning of Free Cash Flows.

 

Thanks in Advance

 

Rahul Srivastava