SYLLABUS SECURITY & FINANCIAL ASSETS :-

EDUCATIONAL COURSES FOR ASSET CLASS: SECURITY & FINANCIAL ASSETS :

50 hours educational course under Rule 5(1) read with Rule 12(2)(a), for registration as Valuers

Sr. No. Topics Weight (%) Hours
1 Principles of Economics:
  1. Micro Economics
  2. National Income Accounting
    Basics of Fiscal Policy
    Basics of Monetary Policy
    Understanding Business cycles
4. 2
2
    Finance and Financial Statement Analysis
  1. Basic Concepts of Finance
    Decisions in Finance
    Financial Markets and Securities Markets
  2. Financial Statement Analysis
    Assets, Liabilities & Equity and Incomes & Expenses
    - Performance Analysis
    - Capital Structure Analysis
    - Credit Analysis
    - Cash Flow Analysis
6 3
3
    Professional Ethics and Standards
  1. Model Code of Conduct as notified by MCA
  2. Other Engagement Considerations
4 2
4
    General laws and Judicial Pronouncements: The Companies Act, 2013
  1. Chapter IV - Share Capital and Debentures
    Chapter XV - Compromises, Arrangements and Amalgamations and the Companies (Compromises, Arrangements and Amalgamations) Rule, 2016
    Chapter XVII- Registered Valuers
    The Companies (Registered Valuers and Valuation) Rules, 2017
    Asset Classes
  2. Indian Contract Act, 1872
    Offer, Acceptance and Revocation
    Legal Contract, Void and Voidable Contracts
    Contingent Contracts
    Performance of Contracts
    Consequences of Breach of Contract
    Agency Agreements
  3. The Sale of Goods Act, 1930
    Contract of Sale
    Definition of Goods
    Price of Goods
    Conditions and Warranties
    Unpaid Seller
  4. The Transfer of Property Act, 1882
    Definition of Immovable Property
    Transfer and Sale of Property
    Rights and Labilities of Buyer and Seller
    Mortgage of Property
    Rights and Liabilities of Mortgager and Mortgage
    Gift of Immovable Property
    Lease
  5. Indian Stamps Act, 1899
    Basics of Indian Stamp Act
    Valuation for Duty
    Instruments on which duty is levied
  6. Income Tax Act, 1961
    Taxes on Individuals
    Taxes on Companies and other entities
    Heads of Income- Salary, House Property, Business Income, Capital gain and Income from other sources
    Clubbing and Set off provisions
    Insolvency and Bankruptcy Code, 2016
    Corporate Insolvency Resolution
    Corporate Liquidation
  7. Judicial pronouncements
    Important Judicial Precedents of Valuation
18 9
5
    Financial Reporting under Indian Accounting Standards (Ind AS)
  1. Indian Accounting Standard (Ind AS) 113, Fair Value Measurement
5 2.5
6
    Overview of Valuation
  1. Meaning of Value
  2. Premise of Valuation
  3. Purpose of Valuation
  4. Valuation Engagements
  5. Valuation Process
  6. Valuation Report
  7. Documentation.
4 2
7
    Valuation Approaches and Methodologies
  1. Income Approach
  2. Market Approach
  3. Cost Approach
3 1.5
8
    Valuation Application
  1. Equity / Business Valuation
    Analysis of Business Environment
    Entity's Business Strategy Analysis
  2. Business Combination- Amalgamation, Merger, Demerger, Arrangement & Restructuring
    Forecasting
    Cash flow Analysis
    Appropriate Cost of Capital / Rate of Return
    Valuation Adjustments
  3. Fixed Income Securities
    Types of Fixed Income Securities
    Types of Different Debt Instruments
    Terms used in Fixed Income Securities
    Credit Rating of Bonds
    Embedded Options
    Interest Rate Derivative Products
    Related FIMMDA Circulars
  4. Option valuation
    General Principles
    Option Valuation Models
    Black and Scholes Valuation Methodology, Black and Scholes Merton Option Pricing Method
    Binomial Tree Method, Monte Carlo Simulation
    Valuation of other Financial Assets and Liabilities
  5. Intangible Assets
    Nature and Classification of Intangibles
    Identification of Nature of Intangible Assets
    Purpose of Intangibles Valuation
    Valuation Approaches
  6. Valuation Application: Situation Specific Valuation
    Business Combination
    Amalgamation, Merger, Demerger, Arrangement & Restructuring
    Distressed Asset Valuation
    Start-up Entities Valuation
    Valuation of Small and Medium Enterprises
    Valuation of Cyclical Firms
    Valuation of Investment Entities
    Valuation for Insurance Coverage
33 16.5
9
    Laws and Notifications relevant to Financial Assets Valuation
  1. Financial Reporting
    Financial Reporting (Indian Accounting Standards), Ind AS 113
  2. The Companies Act, 2013
    Chapter IV - Share Capital and Debenture
    Chapter XV - Compromise Arrangements and Amalgamation and Relevant Rules
    Chapter XX - Winding Up
  3. SEBI Regulations
    SEBI (ICDR), 2009
    SEBI (LODR), 2015
    SEBI (Mutual Fund) Notifications, 1996
    SEBI (Share based Employee Benefits) Regulation, 2014
    SEBI (SAST) Notifications, 2011,
    SEBI(Delisting) Notifications
    ESOP Valuation/li>
  4. RBI and FEMA Notifications
    FEMA (Transfer or Issue of Security by a Person Resident Outside India), Notifications, 2017
    Foreign Direct Investment (Pricing Guidelines)
    Direct Investment by Residents in Joint Venture/ Wholly Owned Subsidiary abroad.
    Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks.
    Guidelines on Sale of Stressed Assets by Banks
    SARFESI Act, 2002
  5. Income Tax and Other Statues
    Capital Gain on Transfer of Assets
    Taxation on Income of Corporate Entities, Partnership
    Carry Forward of Losses
    Compliance of DTAA Agreements.
4 2
10
    Judicial Pronouncements on Valuation
  1. Miheer H. Mafatlal Vs. Mafatlal Industries Ltd. (1997) 1 SCC 579
    - Hindustan Lever Employees' Union Vs. Hindustan Lever Limited And Ors.
    - Brooke Bond Lipton India Ltd.td. [1999] 98 Comp Cas 496 (Cal)
    Dinesh Vrajlal Lakhani Vs. Parke Davis (India Ltd.) (2005) 124 Comp Case 728 (Bom HC)
    - Dr. Mrs. Renuka Datla Vs. Solvay Pharmaceutical B.V. & Ors. G.L. Sultania and Another Vs. The Securities and Exchange Board of India
3 1.5
11
    Case Studies
  1. This section will have two case studies to test the ability to apply valuation techniques. There will be two comprehensions narrating transaction based on which questions will be asked.
16 8