The Framework of Mergers and Acquisitions in India: Background, Implications and Emerging Issues

Abstract

The economic reforms since 1991 has resulted in a change of financial regulatory environment for the corporate sector in India, boosting in the process, a market for corporate control characterized by mergers and acquisitions( M&As) and other forms of restructuring. It is also widely believed that the policy initiatives and the regulatory framework governing takeovers have facilitated this transformation in the Indian corporate sector-giving rise to the increasing takeover activity. In this context, an attempt has been made to assess the impact of the regulatory framework on M&As activity. There has been continuous news and reporting about M&As in the Indian Corporate sector. However, there is dearth of research studies for Indian M&As in the post liberalization period. Therefore, there are certain research issues in this critical area of financial regulation which is having bearing on mergers and acquisitions which need to be investigated. In this regard an attempt has been made to throw some light on some of these aspects. Further, the paper aims at focusing the implications of the regulatory framework on mergers and acquisitions and successfully found out the emerging issues on this area.