Document background
A Valuation Engagement Letter is a crucial document used in the Indian business and regulatory environment to formally establish the terms of a professional valuation assignment. This document is required whenever a company needs formal valuation services for purposes such as mergers and acquisitions, regulatory compliance, tax purposes, or strategic decision-making. The letter must comply with various Indian regulations including the Companies Act 2013, SEBI guidelines, and professional standards set by bodies like ICAI and IBBI. It outlines the scope of work, methodology, deliverables, timelines, fees, and terms of engagement while incorporating specific requirements for registered valuers under Indian law. The document serves as a legal and professional framework for the valuation engagement, protecting both the valuer's and client's interests while ensuring regulatory compliance.
