REGULATIONS ON CROSS-BORDER MERGERS (India)

Author: Rashmi Grover

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Asia Legal Review No.1 (June, 2018)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Background
In April 2017, the provisions of the Indian Companies Act, 2013 relating to cross-border mergers and amalgamations via court approved schemes were notified. While cross-border inbound mergers/amalgamations i.e. a merger of a foreign company with an Indian company where the resultant company is an Indian company was always permitted, it was for the first time that the Companies Act permitted cross-border outbound mergers i.e. an Indian company merging with a foreign company wherein the resultant company is a foreign company. The Reserve Bank of India (“RBI”) quickly followed suit and issued draft regulations governing the foreign exchange elements relating to such cross-border mergers.

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