Section 8 in Securities and Exchange Board of India (Issue of Sweat Equity) Regulations, 2002
8. Valuation of intellectual Property.
(1)The valuation of the intellectual property rights or of the know how provided or other value addition mentioned in Explanation II of sub section (1) of Section 79A of the Companies Act, 1956 shall be carried out by a merchant banker.(2)The merchant banker may consult such experts and valuers, as he may deem fit having regard to the nature of the industry and the nature of the property or other value addition.(3)The merchant banker shall obtain a certificate from an independent Chartered Accountant that the valuation of the intellectual property or other value addition is in accordance with the relevant accounting standards.
