What are the laws governing M&A?

Mergers and Acquisitions in India are governed by the Indian Companies Act, 1956, under Sections 391 to 394. The Indian M&A laws also permit the combination of any Indian firm with its international counterparts, providing the cross-border firm has its set up in India.

Who regulates mergers and acquisitions in India?

The Companies Act, 2013: Administered by the Ministry of Corporate Affairs, the Companies Act is the primary legislation governing all companies in India. The provisions of the Companies Act, along with the rules framed thereunder, govern corporate deals like M&A and PE funding in India.

Do mergers require shareholder approval?

Mergers are transactions involving the combination of generally two or more companies into a single entity. The need for shareholder approval of a merger is governed by state law. Typically, a merger must be approved by the holders of a majority of the outstanding shares of the target company.

What is Vodafone idea merger?

On March 20, 2017, India’s third-largest telecommunications company, Idea Cellular (Idea), announced US $ 23 billion, to merge with the world’s second-largest company, Vodafone India Limited (Vodafone), to build India’s most lucrative company estimated at US $ 12.5 billion.

What has been the largest M&A deal this year 2021?

Biggest M&A deals in 2021

• US$30 billion acquisition of KCS by Canadian National Railway.
• US26 billion acquisition of Shaw Communication by Rogers Communication.
• US$22 billion acquisition of Deutsche Wohnen by Vonovia.
• US20 billion acquisition of Nuance Corporation by Microsoft.
• US17.

Who did Google merge with?

The deal was approved despite anti-trust concerns raised by competitors Microsoft and AT. On August 15, 2011, Google made its largest-ever acquisition to date when it announced that it would acquire Motorola Mobility for $12.5 billion subject to approval from regulators in the United States and Europe.

Who did Google buy android from?

Google bought Android from a standalone company called Android Inc. It was founded a couple of years before Google bought it, in the first half of 2003. The Palo Alto company’s most well-known co-founder was Andy Rubin, who had previously worked for companies like MSN and Apple.

How many shareholders must approve a merger?

In the event the governance documents do not state a necessary proportion for a vote on the merger, Section 1701.78(F) specifies a vote of two-thirds of the shareholders to approve the merger.

What happens to shareholders when a company merges?

After a merge officially takes effect, the stock price of the newly-formed entity usually exceeds the value of each underlying company during its pre-merge stage. In the absence of unfavorable economic conditions, shareholders of the merged company usually experience favorable long-term performance and dividends.

When will SEBI’s new insider trading rule come into effect?

Earlier, company insiders or their proxies would buy and sell shares based on insider tips. The new rule will come into effect from January 1, 2022, the capital market regulator said in a circular issued today. In recent months, Sebi has ordered a forensic audit of certain companies.

What is Clause 49 of the SEBI listing agreement?

The SEBI Board in its meeting held on January 25, 2000 considered the recommendation of the Committee and decided to make the amendments to the listing agreement in pursuance of the decision of the Board, it is advised that a new clause, namely clause 49, be incorporate in the listing agreement as under : 49. Corporate Governance

What is SEBI’s Committee on corporate governance?

SEBI had constituted a Committee on Corporate Governance under the Chairmanship of Shri Kumar Mangalam Birla, Member, SEBI Board to promote and raise the standard of Corporate Governance in respect of listed companies.

How many cases of stock market manipulation were taken up by SEBI?

Sebi said 43.6 per cent of the total cases taken up for investigation during 2020-21 were related to market manipulation and price rigging. The development comes after the tax department asked all the PAN holders to link it with Aadhaar by September 30, 2021, failure to do so would lead to deactivation of the PAN.