Author: Sabir Jamal Khan, BBA.LLB Student at Amity University, Lucknow.
ABSTRACT
Cross-border mergers and acquisitions (M&A) have emerged as a significant driver of economic growth and corporate expansion in India, facilitating foreign investment and global integration. However, these transactions face numerous legal challenges due to complex regulatory frameworks, sectoral restrictions, and compliance requirements.
This paper examines the legal hurdles encountered in cross-border M&A in India, focusing on the interplay between various laws, including the Companies Act, 2013, Foreign Exchange Management Act (FEMA), Competition Act, 2002, and regulations set by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI). Key challenges include bureaucratic delays, limitations in foreign direct investment (FDI), antitrust concerns, taxation complexities, and intellectual property rights (IPR) issues.
Additionally, the study explores landmark judicial decisions and regulatory responses that shape the evolving M&A landscape. A comparative analysis of international legal frameworks in jurisdictions such as the USA, UK, and the European Union provides insights into best practices that could strengthen India’s M&A regulations.
The paper also discusses the need for legal reforms to streamline approval processes, enhance regulatory clarity, and facilitate dispute resolution. As India seeks to attract more foreign investment, addressing these legal challenges is essential for fostering a competitive and investor-friendly business environment. The findings of this research offer valuable recommendations to policymakers, legal practitioners, and corporate entities engaged in cross-border M&A.
Keywords: Cross-Border Mergers and Acquisitions, Legal Challenges, Indian M&A Regulations, Foreign Direct Investment, Competition Law, SEBI, FEMA, Taxation, Intellectual Property, Dispute Resolution.
