Regulatory framework of mergers and acquisitions: A review of Indian statutory compliances and policy recommendations

Abstract

Purpose

The purpose of this paper is to present various institutional laws that refer to mergers and acquisitions (M & As) in India and recommend a few guidelines for institutions and multinational managers participating in foreign investment and acquisition deals.

Design/methodology/approach

The study is intended to review, summarize and discuss the legal framework that adheres to M & As, takeovers and foreign investment.

Findings

Major observations from the comprehensive review include the fact that higher-valuation inbound deals have been delayed or have failed because of a weak financial infrastructure, erratic nature of government officials and political intervention, and the newly elected government has aimed to attract higher inflow of investments from other developed and emerging markets by easing investment rules and offering tax holidays.

Research limitations/implications

This paper, indeed, reflects unseen empirical observation with regard to the characteristics of the market for acquisitions in the given country, which has been left to further research.

Practical implications

The comprehensive review of acquisition laws in India and recommendations would help prospective stakeholders, namely, policymakers, M & A advisors, legal consultants, investment bankers, multinational managers and private equity firms.

Originality/value

This study presents atypical work, which presents a review of M & A laws in India, and it recommends fruitful guidelines for institutions in general and managers in particular.

Citation

Reddy, K.S. (2016), "Regulatory framework of mergers and acquisitions: A review of Indian statutory compliances and policy recommendations", International Journal of Law and Management, Vol. 58 No. 2, pp. 197-215. https://doi.org/10.1108/IJLMA-03-2015-0013