Regulatory System of M&a in India

Name Roll No. Course Subject : Amit Saini :2 : EPGDIB 2010-12 : assigning Mergers & Acquisitions (3rd Sem) Regulatory Framework for Mergers & Acquisitions in India Overview M&A proceeding are primarily regulated by the Companies move, 1956 (Companies puzzle out). fragments 391 to 396 of the Companies coif govern schemes of arrangement and nuclear fusions etc. Section 494 of said Act provides for an alternative form of reconstruction where a liquidator is charge to receive shares etc. in lieu of cash for the careen of the whole/part of any chthoniantaking. Certain restrictions on the skill/transfer of shares are also found in Section 108A to 108I involving undertakings which produce, supply or control 25% or much of the total quantity of relevant goods or services produced or rendered in India. Special norms for Producer Companies (i.e. companies having objects involving farmers produce) have also been stipulated. The Companies Act stipulates inter alia that in the case of transaction involving merger of companies, the conveyance association should be a company incorporated under the Companies Act. In other words, the transferor company could be a company incorporated in India or outside of India, but the conveyance company should be a company incorporated in India.

The Securities and Exchange Board of India (SEBI) Act, 1992, and the guidelines/rules/regulations made thereunder govern M&A proceeding involving public companies listed on a recognize stock exchange. In particular, the SEBI (Substantial Acquisition of Shares and Acquisitions) Regulations, 1997, (Takeover Code) regulates transactions involving acquisition of shares that are traded over the stock market (but exempts schemes of unification approved under the provisions of the Companies Act). The Listing pledge that companies raise into with recognised stock exchanges are relevant in M&A transactions in case of a merger of a company listed on the stock exchange(s). The Listing Agreement requires... If you want to get a full essay, order it on our website: Orderessay

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