Monday, July 9, 2012

Investment Banking Related to M & A in India

Investment Banking Related to M & A in India

Investment Banking Related to M & A in India

Authors

Mergers and Acquisitions advisory is an important practice area for investment banks.
 

Statutory Provisions Relating to M & A in India

 
Company Act, 1956
 
Sections 391-394 deals with the provisions related to mergers or amalgamations.
 
Section 327A gives powers of investment to the board of directors of a company to the extent of 60% of the company's paid up capital and free reservers or 100% of its free reserves, whichever is higher. The board can use this provision to acquire companies. Beyond these limits, a special resolution of members would be necessary.
 
Sections 108B and 108D are also relevant for M&A transactions.
 
Foreign Exchange Management Act (FEMA) Provisions
 
 
SAST Provisions
 
 
Securites Contracts Regulation Act provisions
 
IT Act Provisions
 
 
Stamp Duty Act Provisions
 
To be developed under various heads indicated

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