Evolving Dynamics Of Mergers And Acquisitions In India: Legal Framework, Challenges, And Global Comparisons
- Indian Journal of Law and Legal Research
- Mar 25
- 2 min read
Shubham Sharma, B.A. LL.B. (Hons.), CHRIST (Deemed to be University)
ABSTRACT
Mergers and acquisitions (M&A) have become pivotal instruments for corporate growth, market expansion, and strategic restructuring in India. The country’s legal framework governing M&A transactions is built upon key legislations, including the Companies Act, 2013, the Competition Act, 2002, the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and the Insolvency and Bankruptcy Code, 2016. Regulatory bodies such as the Competition Commission of India (CCI), Securities and Exchange Board of India (SEBI), and the National Company Law Tribunal (NCLT) play a crucial role in ensuring transparency, fairness, and competitive integrity in these transactions.
A comparative analysis with global M&A frameworks, including those in the United States, United Kingdom, and the European Union, highlights India’s alignment with international standards in areas such as antitrust scrutiny and pre-merger notifications. However, challenges persist, particularly in addressing regulatory gaps concerning cross-border M&A, digital economy transactions, and post-merger integration. The rise of insolvency-driven mergers and technology-driven acquisitions further necessitates a dynamic regulatory approach to accommodate evolving market structures and competitive concerns.
Corporate governance and shareholder rights also play a significant role in shaping M&A transactions. While the Companies Act, 2013 provides mechanisms for protecting minority shareholders and enforcing fiduciary duties, balancing shareholder interests with corporate restructuring needs remains a challenge, especially in hostile takeovers and complex cross- border deals.
This paper critically examines India’s M&A regulatory landscape, identifying key challenges and areas for reform. It argues that strengthening oversight mechanisms and aligning domestic regulations with global best practices will be essential to fostering a competitive, transparent, and resilient M&A environment in India’s rapidly evolving economic landscape.
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