What valuation guidelines are used while reporting foreign equity investment for unlisted companies? - FEMA - FAQ - FEMA

Ans : Under FLA return, calculation of market value of equity capital for unlisted companies is done using the Own Funds at Book Value (OFVB) method, in accordance with IMF s guidelines under the compilation of CDIS data for a country. It is calculated as follows: Market value of equity capital held by Non- resident at OFBV for current year/previous year = (Net worth of the company for current year/previous year) * (% non-resident equity holding for current year/previous year) where, Net worth of the company = (Paid up Equity Participating Preference share capital of company + Reserves Surplus - Accumulated losses)