Engaging In M&A In India: Guiding Considerations – Part I

1. Introduction

In order to engage in any M&A activity in India, the parties must be mindful of plethora of laws and policies applicable to the transaction. These include central statutes ranging from company, contract, competition, foreign exchange, labor and employment, stamp duty which is pertinent for rates regarding transaction documents, share certificates, and tax, both direct and indirect; government policies; sector-specific regulations; state amendments to the central legislations; foreign investment norms when non-Indian investors acquire or sell and specific statutes applicable to listed entities and relevant for acquisitions involving companies listed on Indian stock exchanges. Companies in India are private, public, or listed and can be owned and/or controlled either by Indian or foreign entities or individuals. For the last category – owned and controlled by foreigners – additional rules apply when they invest in other Indian entities. Regardless of