(8)Where the share has been issued or allotted by the company as part of consideration for acquisition of any asset or settlement of any liability then the amount received by the company for issue of such share shall be determined in accordance with the following formula-Amount received = A/BWhere,A = an amount being lower of the following amounts-(a)the amount which bears to the fair market value of the asset or the liability, as determined by a merchant banker, the same proportion as the part of consideration being paid by issue of shares bears the total consideration;(b)the amount of consideration for acquisition of the asset or settlement of the liability to be paid in the form of shares, to the extent credited to the share capital and share premium account by the company;B = the number of shares issued by the company as part of consideration:Explanation. - For the purposes of this sub-rule, the term "merchant banker" shall have the meaning assigned to in sub-clause (b) of clause (iv) of sub-rule (8) of rule 3.
