Regulatory Framework for Mergers and Acquisi...

Regulatory Framework for Mergers and Acquisitions in India- An Overview

Author Name : Sandeep Kumar, Dr. Kushwinder Kaur

ABSTRACT: The Concept of economic developments in India during post 1990 period, there has been an observable tendency among promoters and established corporate groups toward mergers and acquisitionsthrough market share, new market expansion and different market strategies of companies. While the economic and financial contemplation, as far as effect of the previously mentioned is related with the legal procedures and unique regulatory systems. The regulatory structure for M&As in India includes the Companies Act, 1956, Competition Act, 2002 (which is replaced with the prior Monopolies and Restrictive Trade Practices Act,1969 with impact from first September 2009), Income Tax Act, 1961, Indian Stamp Act, SEBI Takeover Code and Foreign Exchange Management Act (FEMA) (Misra and Srivastava,2008) and Board for Financial Reconstruction (BIFR), FDI policy, Company Law Board (presently it is called  National Company Law Tribunal (NCLT) in 2010, Competition Commission of India ,Company bill 2012 and the insolvency and bankruptcy code 2016(IBC code 2016). The IBC governs the auctioning of distressed assets under a corporate insolvency resolution process( CIRP).Even IBC code amendment 2021 came into existence with some changes rules with following by  IBC code  amendment / ordinance 2020.The other amendment that is called company amendment act 2020 came into existence on 28 September 2020  with brought some major changes in company law in India