Last updated: 14 Oct 2026

Virtual Auditor

FDI Share Pricing under FEMA

Last updated: 14 Oct 2026

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Quick answer: Virtual Auditor offers professional FDI share pricing services under FEMA, providing compliant valuation certificates with DCF-based floor and ceiling price determinations. The service supports businesses in managing cross-border transactions, ensuring accurate regulatory reporting to RBI and AD banks to avoid severe penalties associated with incorrect pricing or late filings.

Looking for expert fdi share pricing under fema? Virtual Auditor provides practitioner-grade fema services in India, led by CA V. Viswanathan — IBBI Registered Valuer (IBBI/RV/03/2019/12333) | Fellow Chartered Accountant (FCA) | Associate Company Secretary (ACS). We combine deep regulatory expertise with hands-on execution to deliver results within your timeline.

What is FDI Share Pricing under FEMA | Virtual Auditor — CA V. Viswanathan?

What We Deliver

FEMA-compliant valuation certificate with floor/ceiling price determination (usually DCF-based). Completed RBI/AD bank filing (FC-GPR, FC-TRS, ODI, APR, or compounding application as applicable). Comprehensive compliance status report covering all FEMA obligations. Pricing computation as per the Non-Debt Instrument Rules, 2019 with full working. Ongoing compliance calendar with future filing due dates.

Our Process

Step 1: Transaction structure review and FEMA applicability assessment. Step 2: Valuation/pricing computation under applicable FEMA rules. Step 3: Document preparation and regulatory filing with AD bank/RBI. Step 4: Follow-up with authorities until acknowledgment/approval. Step 5: Post-transaction compliance setup and calendar.

We work directly with Authorised Dealer banks to ensure smooth processing of all FEMA filings. Our in-house valuation capability means you do not need to engage a separate valuer for FEMA pricing — the valuation report and FEMA filing are prepared by the same team, eliminating coordination delays and inconsistencies.

Get Started Today

Ready to engage Virtual Auditor for fdi share pricing under fema? Contact us for a free initial consultation:

Call/WhatsApp: +91-99622 60333

Email: support@virtualauditor.in

Offices: Chennai | Bangalore | Mumbai

No obligation. We will assess your requirements and provide a clear scope, timeline, and fixed-fee quote within 24 hours.

Frequently Asked Questions

What documents are needed for fdi share pricing under fema?
Key documents include: Certificate of Incorporation, PAN, share subscription/transfer agreement, valuation report, board resolution, FIRC from the bank, and details of the foreign investor. We provide a personalised checklist after the initial consultation.
How long does fdi share pricing under fema take?
Standard filings: 7-10 working days. Compounding applications: 15-21 working days for preparation (RBI processing takes additional 60-90 days). Contact us at +91-99622 60333 for your specific timeline.
What happens if FEMA compliance is not done on time?
FEMA contraventions attract penalty up to 3x the transaction amount under Section 13, plus Rs 5,000/day for continuing contravention. Compounding with RBI is possible but becomes more expensive with delay. Early compliance is always advisable.
Which valuation purpose, method, certifier and date apply to my proposed foreign investment or transfer?
It depends on who is buying and who is selling. Fresh issue of shares or convertibles to a non-resident: price not below fair value. Transfer from a resident to a non-resident: price not below fair value. Transfer from a non-resident to a resident: price not above fair value. Transfer between two non-residents: the FEMA pricing guidelines do not apply. Convertible instruments: the conversion price or formula must be fixed upfront when they are issued. Share swap: the valuation must be done by a SEBI-registered merchant banker or an investment banker registered abroad. NRI or OCI investment on a non-repatriation basis counts as domestic investment, so the FEMA pricing guidelines do not apply. Listed shares follow the SEBI pricing guidelines. Fair value is worked out by any internationally accepted method on an arm’s length basis, and the certificate must not be more than 90 days old on the date of investment (RBI Master Direction – Foreign Investment, para 8; NDI Rules, 2019, Schedule IV).

Related Services

FEMA Compliance ServicesIndian Subsidiary / Foreign Company RegistrationFEMA/FDI Advisory in AssamFEMA/FDI Advisory in AurangabadFEMA/FDI Advisory in BiharFEMA/FDI Advisory in ChhattisgarhFEMA/FDI Advisory in GoaFEMA/FDI Advisory in Gujarat

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Free 30-minute consultation with CA V. Viswanathan, FCA, ACS, CFE, IBBI RV. No obligation.

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What the law says — Rule 21, FEMA (Non-debt Instruments) Rules 2019; RBI Master Direction on Foreign Investment

Shares issued to a person resident outside India must be priced at not less than the fair value determined by a chartered accountant, merchant banker or registered valuer using any internationally accepted pricing methodology on an arm's-length basis; transfers from non-resident to resident must be at not more than that value. The valuation report is filed with FC-GPR or FC-TRS.

How does the procedure work?

  1. Determine the fair value by an accepted methodology (usually DCF)
  2. Issue the valuation certificate with the date and methodology
  3. Price the issue or transfer within the FEMA band
  4. File FC-GPR within 30 days of allotment or FC-TRS within 60 days of transfer
  5. Reconcile with the Rule 11UA value for the income-tax position
Time limitFC-GPR within 30 days of allotment; FC-TRS within 60 days of transfer or receipt of funds, whichever is earlier
FormsValuation certificate; FC-GPR; FC-TRS; FIRC and KYC
Consequence of defaultLate reporting attracts late submission fee; pricing breaches require compounding under s.15

Source: FEMA, 1999 and NDI Rules 2019. Last reviewed 2026-10-14.

Which laws govern this service? — FEMA

The statutory provisions this service is delivered under, linked to the official text:

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