Fairness opinion is a third party opinion needed in a Corporate Restructuring deal to ensure that the valuation done by a Chartered accountant is fair and reasonable, such opinion is provided by a merchant banker in terms of SEBI Listing guidelines. The fairness opinion also reduces disagreement among shareholders and provides help in the negotiations.
A fairness opinion is required only in case of corporate restructuring deal where a listed Company is party, thus involving public money into the transaction. SEBI has mandated to get the transaction verified from a Merchant Banker where public interest is to be taken care of.
Merchant banker generally executes its own due diligence to analyze whether the share swap ratio calculated by a chartered accountant is fair and reasonable or not.
CCV provides fairness opinions for all types of Corporate Restructuring Deals.