(6)The fair market value of all the assets of a foreign company or an entity shall be determined in the following manner, namely:-(i)where the transfer of share of, or interest in, the foreign company or entity is between the persons who are not connected persons, the fair market value of all the assets owned by the foreign company or the entity as on the specified date, for the purpose of such transfer, shall be determined in accordance with the following formula, namely:-Fair market value of all assets = A+BWhere;A = Market capitalisation of the foreign company or entity computed on the basis of the full value of consideration for transfer of the share or interest;B = Book value of the liabilities of the company or the entity as on the specified date as certified by a merchant banker or an accountant;(ii)in any other case, if, -(a)the share of the foreign company or entity is listed on a stock exchange on the specified date, the fair market value of all the assets owned by the foreign company or the entity shall be determined in accordance with the following formula, namely:-Fair market value of all the assets = A + BWhere;A = Market capitalisation of the foreign company or entity computed on the basis of the observable price of the share on the stock exchange where the share of the foreign company or the entity is listed;B = book value of the liabilities of the company or the entity as on the specified date:Provided that where, as on the specified date, the share is listed on more than one stock exchange, the observable price in the aforesaid formula shall be in respect of the stock exchange which records the highest volume of trading in the share during the period considered for determining the price;(b)the share in the foreign company or entity is not listed on a stock exchange on the specified date, the value of all the assets owned by the foreign company or the entity shall be determined in accordance with the following formula, namely:-Fair market value of all the assets = A+ BWhere;A = fair market value of the foreign company or the entity as on the specified date as determined by a merchant banker or an accountant as per the internationally accepted valuation methodology;B = value of liabilities of the company or the entity if any, considered for the determination of fair market value in A.
