TABLE OF CONTENTS

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DECLARATION BY THE SCHOLAR I

SUPERVISOR CERTIFICATE II

PREFACE AND ACKNOWLEDGEMENT III

LIST OF ABBREVIATIONS IV

LIST OF CASES XI

LIST OF FIGURES XIV

LIST OF TABLES XV

CHAPTER 1: INTRODUCTION 1

1.1. MEANING OF MERGERS AND ACQUISITIONS 1

1.1.1. THE MATRIX OF THE GLOBAL ECONOMY 4

1.1.2. TYPES OF MERGERS AND ACQUISITIONS 5

1.1. 3. MEANING OF CROSS-BORDER MERGERS AND

ACQUISITIONS 6

1.1.3.1 PRIOR APPROVAL FROM R.B.I. IS

MANDATORY 9

1.1.3.2 CENTRAL GOVERNMENT

RESPONSIBILITY OF FRAMING OF
RULES IN CONSULTATION WITH THE
R.B.I. 10

1.1.3.3. NATIONAL COMPANY LAW TRIBUNAL

(NCLT)’S APPROVAL 10
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1.1.3.4 PERMITTED JURISDICTION FOR

OUTBOUND MERGER 10

1.1.3.5 PENALTY 12

1.1.3.6 CULTURAL GAPS: TYPES AND IMPACT 14

1.1.4. CBMA & DUE DILIGENCE 14

1.1.4. 1. TYPES OF CBMAs 15

1.1.4.2. MAGNITUDE OF CBMAs . 15

1.2. CBMAs AT THE GLOBAL LEVEL 19

1.2.1. CROSS-BORDER MERGERS IN UK 19

1.2.2 THE PRE-MERGER REQUIREMENTS 20

1.2.3. CBMA: COMPETITION LAW IN INDIA 28

1.2.4. CBMA & GLOBAL WAVES 28

1.3. CBMA AND INDIAN TAX REFORMS 28

1.3.1. CBMA AND CYBER BUSINESS 36

1.3.2. CBMA AND FINANCIAL SECTOR 37

1.4. CBMA AND LEGAL DUE DILIGENCE 38

1.4.1. CBMA AND LEGAL DUE-DILIGENCE IN

ANTITRUST/COMPETITION MATTERS 40

1.5. CBMA AND THE LEGAL PROVISIONS IN INDIA 42

1. 6. RULES AND REGULATIONS 44

1.6.1. SERIOUS FRAUD INVESTIGATION OFFICE- SFIO 44

1.6.1.1. DIRECTORATE OF REVENUE

INTELLIGENCE- DRI. 46
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1.6.1.2. THE ENFORCEMENT DIRECTORATE-

ED 49

1.6.2.4. THE CENTRAL EXCISE AND CUSTOMS

DUTIES RULES AND REGULATIONS 50

1.7. RECENT EXPERIENCES OF CBMAs IN INDIA 51

1.7.1. EXAMPLES – SHREE RENUKA SUGARS 51

1.7.2. EXAMPLES OF THE OUTBOUND

TRANSACTIONS 53

1.8. CBMA AND THE PRACTICES IN INDIA AND ABROAD 57

1.9. CBMA AND INTERNATIONAL EXPERIENCE 58

1.10. CBMA AND GENERAL INTERNATIONAL EXPERIENCE

OF LEARNING IMPORTANCE 59

1.10.1. CBMA AND DOMESTIC EXPERIENCE OF

LEARNING IMPORTANCE 61

1.10.2 CBMA AND PREVENTION OF CORRUPTION

ACT, 1988 AND FOREIGN DIRECT
INVESTMENT RULES 61

1.10.3. CBMA AND SEBI 62

1.10.4. MOTIVES FOR CBMA 62

1.10.5. CBMA: CULTURE AND CORPORATE

GOVERNANCE 62

1.10.6 CBMA: EMERGING COUNTRIES 62

1.10.7 CBMA: SPECIFIC TYPES OF MERGERS 63

1.10.8 CBMA: COMPETITION LAW, 2002 63

1.10.9 CBMA: STAMP DUTY ACT 63

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1.10.10. CBM: JUDICIAL INFRASTRUCTURE 63

LITERATURE REVIEW 64

1.11. INTRODUCTION 64

1.12. CBMAs : MEANING 64

1.12.1. CBMAs: INBOUND OUTBOUND MERGERS 65

1.12.2. CBMA: TAXATION 65

1.12.3. CBMA: VALUATION 66

1.12.4. CBMAs: ATTRITION 66

1.12.5 CBMAs: ECONOMIC SYSTEMS 66

1.12.6. CBMAs: RISK MANAGEMENT 67

1.12.7 CBMA: SOVEREIGNTY 67

1.12.8. CBMAs: MARKET LEGACIES 67

1.12.9. CBMAs: MERGER WAVES 68

1.12.10. CBMAs: 20TH CENTURY EXPERIENCES 69

1.12.11. CBMAs: LEFTOVER DEALS 70

1.12.13. CBMAs: TRANSACTIONAL ECONOMIES 70

1.12.14. CBMAs: EMERGING ECONOMIES 71

1.12.15. CBMAs: WORLD MARKET 1994‒2013 71

1.12.16. CBMAs: VALUE OF DEALS 72

1.12.17. CBMAs: NON ECONOMIC FACTORS 74

1.12.18. DETERMINANTS OF CBMAs 75

1.12.19. CBMAs: DEAL-SPECIFIC FACTORS 76

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1.12.20. CBMAs FIRM / INDUSTRY-SPECIFIC FACTORS 76

1.12.21. CBMAs: DUE DILIGENCE IN

ORGANISATIONAL LEARNING 77

1.12.21.1. ORGANISATIONAL LEARNING BY

DOING 78

1.12.21.2 ORGANISATION LEARNING BY

OBSERVING 79

1.12.21.3 ORGANISATIONAL LEARNING BY

OTHER MEANS 79

1.12.21.4. CBMAs: COUNTRY-SPECIFIC

FACTORS 80

1.12.21.5. CBMAs: ECONOMIC/FINANCIAL

FACTORS 81

1.12.21.6 . CBMAs: COUNTRY SPECIFIC

FACTOR OF NORTH AMERICA 82

1.12.21.7. CBMAs COUNTRY SPECIFIC

FACTOR OF EUROPE 84

1.12.21.8. EMERGING ECONOMIES 85

1.12.21.9. DEVELOPING ECONOMIES 85

1.12.21.10. CBMAs: ASIA – PACIFIC REGION 86

1.12.21.11. CBMAs: LAW, RULES AND

REGULATIONS 86

1.12.21.12. REGULATORY FRAME WORK 86

1.12.21.13. INVESTOR INTEREST 87

1.12.21.14. INVESTMENT CLIMATE 88

1.12.21.15. STANDARDS 89
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1.12.21.16. CORPORATE GOVERNANCE 89

1.12.21.17. FLEXIBILITY OF LAW 89

1.12.21.18. DEVELOPING COUNTRIES 90

1.12.21.19. STOCK MARKET 91

1.12.21.20. LEGAL GAPS 92

1.12.21.21. INSTABILITY, TRANSPARENCY,

UNACCOUNTABILITY AND
CORRUPTION 92

1.12.21.22. CORRUPTION 93

1.12.21.23. BEHAVIOUR OF GOVERNMENT

SERVANTS 95

1.12.21.24. TAX AND TAXATION ISSUES 95

1.12.21.25. ACCOUNTING AND VALUATION

ISSUES 98

1.12.21.26. INFORMATION AND SYMMETRY

AND CBMAs 98

1.12.21.27. CBMAs: SYNERGY 99

1.12.21.28. GEOGRAPHICAL FACTORS 100

1.12.21.29. CULTURAL FACTORS 100

1.13. CBMAs : THEORETICAL BACKGROUND 104

METHODOLOGY 107

1.14 METHODOLOGY RESEARCH OBJECTIVES RESEARCH

QUESTIONS AND HYPOTHESES 107

1.15. RESEARCH OBJECTIVES 107

1.16. RESEARCH QUESTIONS 108

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1.17. HYPOTHESIS 109

1.18. EMPIRICAL STUDY METHODOLOGY 110

CHAPTER 2: CROSS BORDER MERGERS AND

ACQUISITIONS: STATUTES,
REGULATIONS, RULINGS,
LEGISLATIONS AND ANALYSIS 111

2.1. INTRODUCTION 111

2.1.1 CULTURE AND CBMA 111

2.1.2. CBMAs 113

2.1.3. CBMAs : EASE OF DOING BUSINESS 117

2.1.4. INSOLVENCY AND BANKRUPTCY CODE (IBC) 117

2 .2. CBMA: IBC 119

2.2.1. CBMAs: GST 124

2.2.2. CBMAs: RERA 125

2.2.3. IMPACT OF RERA ON FUNCTIONING OF REAL

ESTATE DEVELOPERS AND OTHER STAKE
HOLDERS? 125

2.2.4. CBMAs: RERA PRIORITIES PRESENT AND

FUTURE 126

2.2.5. AMENDMENTS TO P.C. ACT, 1988 AND FDI

RULES 126

2.3. CBMA AND INSIDER TRADING 130

2.3.1. CBMA AND HOSTILE TAKEOVER 132

2.3.2. CBMA AND WARRANTIES 133

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2.3.3. CBMA AND INDUSTRIAL DISPUTE ACT AND

ESSENTIAL ACTS 134

2.4. CBMA AND SPECIFIC RELIEF ACT 135

2.4.1. CBMA AND CORRUPTION 135

2.4.2. CBMA AND FDI 135

2.5 GAPS IN CBMA DOMESTIC AND INTERNATIONAL

LEARNING EXPERIENCE 137

2.5.1. PURCHASE AND SALES AND CBMAs 138

2.5.2. CBMAs AND INFLUENCING FACTORS 139

2.5.3. FOREIGN INVESTORS 141

2.6. MOTIVES FOR CBMA 144

2.6.1. THE BENEFITS OF CBMA 145

2.6.2. CHALLENGES AND CBMA 145

2.6.3. LEGAL ISSUES IN CBMA TRANSACTIONS 146

2.7. ACCOUNTING AND CBMA 147

2.7.1. SYNERGY – CBMA 147

2.7.2. CORPORATE GOVERNANCE 149

2.8. CBMA CULTURE GOVERNANCE AND CORPORATE

GOVERNANCE 150

2.8.1. FUNDAMENTAL DIFFERENCES ACROSS

COUNTRIES. PROBLEMS ARISE DUE TO
FUNDAMENTAL DIFFERENCES ACROSS
COUNTRIES WHICH INVOLVE 150

2.8.2. EMPLOYEE ATTRITION AND CBMA 151

2.8.3. COMPARATIVE FACTORS 152

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2.8.4. IMPLEMENTATION IN DEVELOPED

COUNTRIES- CBMA 152

2.9. EMERGING MARKETS AND CBMA 153

2.9.1. EXAMPLE OF CBMA IN INTRA EMERGING

DEVELOPING COUNTRIES 155

2.10. CBMA AND SPECIFIC TYPES OF MERGERS 156

2.10.1. FRAUD AND CBMA 157

2.10.2. PROVISION OF SECTION 195 OF COMPANIES

ACT, 2013 158

2.11. COMPETITION LAW & CBMA 158

2.11.1. PROVISIONS AND IMPLEMENTATION OF

STAMP DUTY ACT 158

2.11.2. JUDICIAL REVIEW 159

2.12. INNOVATION AND CBMA 161

2.12.1. INTEGRATION AND CBMA 162

2.12.2. TECHNOLOGY AND CBMA 163

2.12.3. RESEARCH AND CBMA 163

2.13. CULTURE AND CBMAs 165

2.13.1. CBMA AND CORRUPTION 166

2.13.2. LAWYERS AND CBMA 167

2.13.2.1. LAWYERS 167

2.13.2.2. REASONS FOR FAILURE OF CBMA 168

2.14. EMPERICAL SURVEY AND ANALYSIS 169

2.15. CONCLUSION 184

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CHAPTER 3: CBMA, COMPETITION LAW,

ANTITRUST, AND DEMERGER 185

3.1. INTRODUCTION 185

3.2. CBMA AND ANTITRUST LAWS 186

3.3. CBMA & USA ANTITRUST EXPERIENCE 187

3.4. CASE STUDY 191

3.5. GUIDELINES FOR INTERNATIONAL ENFORCEMENT

AND COOPERATION IN ANTITRUST MATTERS 193

3.6. ANTITRUST LITIGATION IN THE UNITED STATES 195

3.7. FRIVOLOUS, BAD FAITH, AND SHAM COMMERCIAL

LITIGATION AND CDMA 197

3.8. COMPETITION POLICY AND CBMA IN INDIA 198

3.9. COMPETITION ACT, COMPETITION COMMISSION,

MERGERS, AMALGAMATION ENFORCEMENT,
SUGGESTIONS 199

3.10. RECENT EXPERIENCE IN CBMA AND EASE OF DOING

BUSINESS INDEX 200

3.11. GAPS, TRIBUNALISATION, SCOPE FOR CORRECTION 204

3.12. THE CONCEPT OF DEMERGERS IN INDIA AND USA 206

3.13 LEGISLATIVE INITIATIVES IN INDIA AND-

JURISDICTION OF MINISTRY OF CORPORATE
AFFAIRS 209

3.13.1 MINISTRY FOR CORPORATE AFFAIRS,

GOVERNMENT OF INDIA 209

3.14. INBOUND MERGERS 212

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3.15. OUT BOUND MERGERS 213

3.16. COMPANIES COMPROMISES AND AGREEMENT OR

AMALGAMATION RULES, 2016 214

3.17. BILATERAL AGREEMENTS AND CBMA 217

3.18. STAMP DUTY AND CBMA 219

3.18.1. MAHARASHTRA STAMP ACT, 1958 220

3.18.2. KARNATAKA STAMP ACT 220

3.18.3. CONTROVERSY 221

3.18.4. LI TAKA PHARMACEUTICALS VS STATE OF

MAHARASHTRA(1997) 221

3.18.5. HINDUSTAN LEVER VS. STATE OF

MAHARASHTRA (2004) 221

3.18.6. DELHI TOWERS LTD VS GNCT OF DELHI (2009) 222

3.18.7. DELHI TOWERS LTD VS GNCT OF DELHI (2009) 222

3.19 SPECIFIC RELIEF ACT, 1963: THE AMENDMENT BILL,

2017 IMPLICATIONS ON BUSINESS TRANSACTIONS AND
CBMA 223

3.19.1. SPECIFIC RELIEF ACT, 1963 223

3.19.2. THE IMPLICATIONS OF THE AMENDMENTS TO

THE SPECIFIC RELIEF ACT, 1963 223

3.19.3. THE PROPOSED CHANGES 224

3.19.4. GENERAL RULE, SPECIFIC PERFORMANCE

AND CHANGES 224

3.19.5. DISCRETION GIVEN TO COURTS AND

COMMITTEES 225
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3.19.6. RIGHTS OF THIRD PARTIES 225

3.19.7. SEPARATE CLASS FOR PUBLIC CONTRACTS 226

3.19.8. IMPLICATIONS 227

3.19.9. EFFECTS OF THE SPECIFIC RELIEF

(AMENDMENT) BILL, 2017 ON THE LAW OF
REMEDIES FOR BREACH OF CONTRACT 231

3.20. LIMITED LIABILITY ACT, 2008 AND ITS IMPLICATIONS

ON CBMA 231

3.20.1 LLP ACT IN INDIA 231

3.20.2 BENEFITS 233

3.20.3 SITUATION OF LLP IN UNITED STATES UNITED

STATES 233

3.21. CBMA AND CAG 235

3.22. CONCLUSION 236

CHAPTER 4: CBMA: INDIAN EXPERIENCE 237

4.1. INTRODUCTION 237

4.1.1. INDIAN EXPERIENCE 237

4.2. THE FDA AND EMERGING MARKETS: THE CASE OF

INDIA 242

4.3. ECONOMIC POLICY REFORMS AND CBMA 242

4.4. MAJOR LEGAL REFORMS OF CBMA IN INDIA 244

4.5. DEMONETISATION AND CBMA 246

4.5.1 IMPACT OF DEMONETISATION 247

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4.6. CBMA AND BRICS (BRAZIL, RUSSIA, INDIA, CHINA,

SOUTH AFRICA) 248

4.7. CBMA AND INTERNATIONAL TRADE 249

4.8. CBMA AND GROWTH IN BUSINESS 252

4.9. CBMA AND JAN DHAN ACCOUNTS 254

4.10. PEOPLES INCLUSIVENESS AND ECONOMIC REFORMS 255

4.11. INDICES AND RATIOS 256

4.12. FINANCE BANKING GOVERNANCE REFORMS 260

4.13. IT ACT AND CBMA 262

4.14. THE CBMA AND FEMA 263

4.15. ISSUANCE OF SHARES IN CBMA 264

4.16. THE FRAMEWORK TO THE IBC PROCESS –

OPPORTUNITIES 264

4.17. START-UPS AND CBMA 265

4.18. KAIZEN AND CBMA 266

4.19. CONCLUSION 267

CHAPTER 5: CBMA IN EMERGING ECONOMIES &

DEVELOPED ECONOMIES 268

5.1. LDC AND EM IN CBMA ENVIRONMENT 268

5.1.1 INTRODUCTION 268

5.2. EMERGING OPPORTUNITIES AND CBMA 271

5.3. COMPARATIVE CBMA IN VARIOUS STATES OF USA 272

5.4. SARBANES- OXLEY ACT, 2002 274

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5.5. DODD – FRANK ACT 276

5.6. NATIONAL SECURITY IN USA AND CBMAs . 277

5.7. CIFUS &CBMA 278

5.8. CLAYTON AND H-S-R ACTS AND AMENDMENTS 280

5.9. SPECIFIC EXAMPLES 284

5.10. CBMA EMERGING ECONOMIES, INDIA AND BRICS 286

5.11. CONCLUSION 289

CHAPTER 6: CORRUPTION TRANSPARENCY ISSUES IN

CROSS BORDER MERGERS AND ACQUISITIONS
USA AND INDIA 290

6.1. INTRODUCTION 290

6.2. CORRUPTION 291

6.3. FCPA:USA 292

6.4. EXAMPLE OF MAJOR CASES 292

6.5. ENFORCEMENT IN USA 293

6.6. CONTROL FRAMEWORK AND STRUCTURES 295

6.7. COMPLIANCE PROGRAMS 296

6.8. SCOPE OF IMPROVEMENT 297

6.9. VICARIOUS LIABILITY/RESPONSIBILITY AND CBMA 298

6.10. ANTI-CORRUPTION DUE DILIGENCE AND CRITICAL

EXAMPLES 299

6.11. EFFECTIVENESS OF FCPA IMPLEMENTATION 300

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6.12. CRITICAL EXAMPLES OF ANTI-CORRUPTION

PROSECUTION IN CBMA 301

6.13. TRANSPARENCY AND EVALUATION OF INDIAN

CBMAs 205

6.14. CONCLUSION 308

CHAPTER 7: NEW LEGAL INITIATIVES BY INDIA IN

CBMA ENVIRONMENT 309

7.1. INTRODUCTION 309

7.2. MONEY LAUNDERING AND CBMA 310

7.3 SFIO AND CBMA 312

7. 4. THE IMPORTANCE OF CREDIT IN CBMA 315

7.5. SARFAESI & CBMA 318

7.6. CBMA AND BANKING REFORMS 319

7.7. STAMP ACT & CBMA 321

7.8 THE LATEST DEVELOPMENTS 322

7.9 CONCLUSION 328

CHAPTER 8: CONCLUSION 329

8.1. INTRODUCTION 329

8.2. SUGGESTIONS OF THE STUDY TO RESEARCH

OBJECTIVES AND ANSWERS TO THE RESEARCH
QUESTIONS 321

8.3. EFFORTS FOR MODIFICATIONS OF LAW 337

8.4. SUMMARY OF CONCLUSIONS 340

8.5. SCOPE OF FURTHER RESEARCH 342

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BIBLIOGRAPHY 344

BOOKS 344

LAWS 350

JOURNALS & REPORTS 355

WEBLIOGRAPHY 370

ANNEXURE 377

SYNOPSIS 381

ABSTRACT 414