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Market Value

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Market Value

Market Value is the current price an asset can fetch in an open market under fair conditions.

It is widely used in property transactions, loans, insurance, taxation, and investments.

In India, market value of property is determined by the State Government's guideline value (circle rate/ready reckoner value) or by valuation reports from certified valuers.

  • In simple words: Market Value = the fair value at which a willing buyer and a willing seller agree to transact, without pressure.

1. Property Market Value

  • Land, house, commercial property.
  • Used for stamp duty, registration, loan sanction, and taxation.

2. Share/Stock Market Value

  • Value of a company's share in stock exchanges.
  • Includes market price, fair value, intrinsic value.

3. Business Valuation (Enterprise Market Value)

  • Total value of a business/company.
  • Used in mergers, acquisitions, investment decisions.

4. Asset Market Value

  • For vehicles, machinery, gold, or equipment.
  • Used for insurance, loans, resale.

5.Agricultural Land Market Value

  • Determined by circle rate and actual demand in the area.
  • Used in compensation cases, land acquisition, and subsidy approvals.

For Property Market Value

  • Property documents (Sale Deed / Title Deed / Allotment Letter).
  • Encumbrance Certificate (EC).
  • Property tax receipts.
  • Approved building plan (if applicable).
  • Identity & Address proof of owner/applicant (PAN, Aadhaar, Passport, Voter ID).
  • Application form for market value certificate (to Sub-Registrar/Revenue Office).

For Business/Company Valuation

  • PAN & Registration documents of company.
  • Audited financial statements (last 3 - 5 years).
  • Shareholding pattern.
  • Details of assets & liabilities.

For Movable Assets (Machinery/Vehicle)

  • Purchase invoice/RC Book/Insurance papers.
  • Depreciation details.

  • Individuals - Property buyers/sellers, loan applicants.
  • Businesses - Companies applying for secured loans, mergers, or asset valuation.
  • Banks & Financial Institutions - While approving mortgage/loan against property.
  • Legal heirs/beneficiaries - For inheritance, partition, or gift deed valuation.
  • Government agencies - For land acquisition or taxation purposes.

1. For Loans & Mortgages

  • Banks use market value to decide loan eligibility and limit.
  • Prevents over-financing.

2. For Buyers & Sellers

  • Ensures property/asset is sold or purchased at a fair price.
  • Avoids fraud and disputes.

3.For Government & Legal Purposes

  • Basis for stamp duty, registration charges, and property tax.
  • Used in land acquisition compensation.

4.For Investors

  • Helps evaluate real worth of shares, businesses, or real estate investments.

5.For Inheritance & Disputes

  • Used in partition suits, succession planning, and wealth distribution.

6. Sustainability
 
     
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