Undoubtedly, the shift in regulatory responsibility and simplification of procedures reduced the timeframe for bringing in FDI, whether for fresh issues or transfers. But the pricing guidelines for unlisted companies remained the same, notwithstanding changes in capital inflow trends, structuring and investment options and global valuation norms. What is really absurd is the continued, reliance placed on the obsolete CCI guidelines.
Some of us remember that the Controller of Capital Issues (CCI) was the regulator of all share issues priced higher or lower than face value. For the purpose of price determination, CCI had prepared guidelines based on an average of the Net Asset Value (NAV) and Profit Earning Capacity Value (PECV) methods
