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: Micro Economics National Income Accounting Basics of Fiscal Policy Basics of Monetary Policy Understanding Business cycles	4.	2
2	Finance and Financial Statement Analysis Basic Concepts of Finance Decisions in Finance Financial Markets and Securities Markets 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 Model Code of Conduct as notified by MCA Other Engagement Considerations	4	2
4	General laws and Judicial Pronouncements: The Companies Act, 2013 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 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 The Sale of Goods Act, 1930 Contract of Sale Definition of Goods Price of Goods Conditions and Warranties Unpaid Seller 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 Indian Stamps Act, 1899 Basics of Indian Stamp Act Valuation for Duty Instruments on which duty is levied 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 Judicial pronouncements Important Judicial Precedents of Valuation	18	9
5	Financial Reporting under Indian Accounting Standards (Ind AS) Indian Accounting Standard (Ind AS) 113, Fair Value Measurement	5	2.5
6	Overview of Valuation Meaning of Value Premise of Valuation Purpose of Valuation Valuation Engagements Valuation Process Valuation Report Documentation.	4	2
7	Valuation Approaches and Methodologies Income Approach Market Approach Cost Approach	3	1.5
8	Valuation Application Equity / Business Valuation Analysis of Business Environment Entity's Business Strategy Analysis Business Combination- Amalgamation, Merger, Demerger, Arrangement & Restructuring Forecasting Cash flow Analysis Appropriate Cost of Capital / Rate of Return Valuation Adjustments 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 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 Intangible Assets Nature and Classification of Intangibles Identification of Nature of Intangible Assets Purpose of Intangibles Valuation Valuation Approaches 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 Financial Reporting Financial Reporting (Indian Accounting Standards), Ind AS 113 The Companies Act, 2013 Chapter IV - Share Capital and Debenture Chapter XV - Compromise Arrangements and Amalgamation and Relevant Rules Chapter XX - Winding Up 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> 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 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 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 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