PNB Housing controversy puts spotlight on independent valuer rule

Inconsistencies between the Companies Act and the Issue of Capital Regulations to be debated before SAT

PNB Housing Finance fund infusion controversy has put a spotlight on the rule around appointing an independent valuer while making a preferential allotment of shares.

Market regulator Securities and Exchange Board of India (Sebi) has put a spanner in the works on private equity major Carlyle-led capital infusion of Rs 4,000 crore in the mortgage lender for not getting the company valued from an independent registered valuer before arriving at the allotment price.

PNB Housing, which needs these funds to tide over financial difficulties, believes that its board has compiled with all the regulations while clearing the deal on May