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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM68203
Volume:
10 |
10 |
Oct 2026
Pages:
1-7
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
School of Law
SRM Institute of Science and Technology
Cross-border mergers and acquisitions have become a principal route through which Indian and foreign enterprises reorganise ownership, obtain technology and enter new markets. India does not regulate such transactions through a single statute. A deal instead passes through foreign exchange law, company law, competition law, securities regulation, insolvency law and tax law, each administered by a different authority. This paper maps that layered framework, concentrating on the Foreign Exchange Management Act, 1999, the Companies Act, 2013 read with Rule 25A of the 2016 merger rules, the Cross Border Merger Regulations, 2018, the Competition Act, 2002 as amended in 2023, the takeover regulations of the securities market regulator, and the Insolvency and Bankruptcy Code, 2016. Applying a doctrinal method, it also studies how Indian courts and arbitral tribunals have treated offshore transactions, particularly in the Vodafone litigation, and records recent reforms, namely the fast-track route for reverse flips (2024), the deal value threshold (2024), the revised land-border investment policy (2026) and the Income-tax Act, 2025. The paper argues that the framework is now broadly enabling but remains fragmented. Uncertain sequencing of approvals, uneven tax treatment of outbound mergers and the lack of a cross-border insolvency regime are identified as the main weaknesses, and targeted reforms are proposed.
KEYWORDS
India's treatment of cross-border mergers and acquisitions has moved from near prohibition to structured permission within three decades. Foreign exchange law, company law, competition law, securities regulation, insolvency law and tax law now each supply a workable component, and the reforms of 2024 to 2026 show continued willingness to improve the system, especially for inbound consolidation. The difficulty that remains is one of integration. Without clear sequencing, symmetrical tax treatment and a cross-border insolvency framework, the cost of compliance will remain high and unpredictable. A coordinated reform of those three areas would do more to improve the investment climate than any further relaxation of individual thresholds.
[1] Government of India, The Foreign Exchange Management Act, 1999 (Act 42 of 1999). [2] Expert Committee on Company Law (J. J. Irani, Chair), Report of the Expert Committee on Company Law, Ministry of Company Affairs, New Delhi, May 2005. [3] Government of India, The Companies Act, 2013 (Act 18 of 2013), ss. 230-234. [4] Ministry of Corporate Affairs, Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, rr. 25 and 25A, as amended, including the Amendment Rules notified Sept. 9, 2024. [5] Reserve Bank of India, Foreign Exchange Management (Cross Border Merger) Regulations, 2018, Notification No. FEMA 389/2018-RB, Mar. 20, 2018. [6] Ministry of Finance, Foreign Exchange Management (Non-debt Instruments) Rules, 2019, Oct. 17, 2019. [7] Department for Promotion of Industry and Internal Trade, Consolidated FDI Policy Circular of 2020, Oct. 15, 2020, as amended. [8] Department for Promotion of Industry and Internal Trade, Press Note No. 3 (2020 Series), Apr. 2020. [9] Department for Promotion of Industry and Internal Trade, Press Note No. 2 (2026 Series), Mar. 15, 2026; see also Press Information Bureau, “Cabinet approves changes in guidelines on investments from countries sharing land border with India,” Mar. 10, 2026. [10] Ministry of Finance, Foreign Exchange Management (Overseas Investment) Rules, 2022, Aug. 2022.
Publication Date
10/23/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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