Merger and Acquisitions
The term mergers and acquisitions (M&A) refer broadly to the process of one company combining with one another. In an acquisition, one company purchases the other outright. The acquired firm does not change its legal name or structure but is now owned by the parent company. A merger is the combination of two firms, which subsequently form a new legal entity under the banner of one corporate name.
Following are the legislations that govern the provision related to Merger and Acquisition:
The Companies Act, 2013: It is the basic legislation to govern all kinds of companies in India. All kinds of transactions done by the body corporate including Merger and Acquisition must be in accordance with the provision of the Companies Act, 2013.
The Foreign Exchange and Management Act, 1999 (FEMA): FEMA and the rules framed there under and the regulation issued by the Reserve Bank of India regulates foreign exchange transactions in India.
Securities and Exchange Board of India (SEBI): The SEBI (Substantial Acquisition of Shares and Takeover) regulations, 2011 inter alia govern Merger and Acquisition involving the acquisition of a substantial stake in a publicly listed company.
Insolvency and Bankruptcy Code, 2016 (IBC): IBC plays a vital role and is one of the major factors that contribute to the merger and acquisition deals.
The Competition Act, 2002: This act along with the Competition Commission of India Regulation, 2011 governs the M&A transactions.
The Income Tax Act, 1961: This act is enacted to govern the income taxes for all purposes including M&A transactions.
Our M&A team have experience in handling high value and complex cases of M&A. We believe in providing efficient and deal-oriented legal assistance to our clients. Our team comprises some of the best corporate counsels on our panels who have substantial experience in solving complex issues and providing strategic and structured advice to minimize the risks involved in issues related to corporate law.