India Tax & Regulatory
FEMA Pricing Guidelines (FDI Pricing Norms)
RBI/FEMA rules setting a fair-value floor for share transfers to non-residents — sellers benefit from this floor as a valuation defense against being underpaid by foreign buyers.
Seller Example
Promoter of a Bengaluru fintech startup selling 60% to a foreign fund uses the RBI-mandated FEMA fair value floor, from an independent merchant banker's valuation, as a hard price floor in negotiation, preventing the foreign buyer from anchoring the offer below the compliance-mandated minimum.