The term beneficial owner wasn’t defined under the Press Note 3 of 2020, and the FEMA (Non-debt Instruments) Rules, 2019. Hence, there existed a dichotomy in the industry, as to the ownership thresh...
Published On: 01/04/2018
Practice Area: Corporate & Commercial, Private Equity, Venture Capital and Fund Investment, Government & Regulatory, Mergers & Acquisitions
Authors:
Akhoury Winnie Shekhar
In an attempt to clarify the position in relation to the law relating to cross-border mergers in India, the Reserve Bank of India (the 'RBI') has notified the Foreign Exchange Management (Cross Border Merger) Regulations, 2018 (the 'Regulations') . The Regulations provide further clarity with respect to the cross-border merger regime in India, which opened up after the Ministry of Corporate Affairs notified Section 234 (relating to mergers and amalgamations of companies with foreign companies) of the Companies Act, 2013 (the 'Act') in April 2017. For the first time, the law now contemplates the merger of an Indian company with a foreign company where the resultant entity is a foreign company.
