Mergers and acquisitions are generally governed by the Companies Act, 1956 and sector- specific law, such as insurance, pension, banking law, etc. The provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, Listing Agreements with the stock exchange, SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, SEBI (Prohibition of Insider Trading Regulations) 1992 must be complied with in the case of listed companies. If a merger has cross-border aspects/nonresident shareholder/investor, the parties must comply with the foreign direct investment policy of the government and Foreign Exchange Management Act, 1999. Indian companies are permitted to acquire businesses/companies abroad if.
