Mergers & Acquisitions

Mergers and Acquisitions in India: Legal Framework and Key Considerations

  • 10 Nov 2025
  • KP Law & Legal Associate

M&A activities enhance business growth but involve complex legal, financial, and regulatory considerations.

Regulatory Framework

  • Companies Act, 2013 – merger approvals and procedures

  • SEBI Regulations – for listed companies

  • Competition Act, 2002 – anti-competition compliance

Key Considerations

  • Due diligence of assets and liabilities

  • Shareholder and board approvals

  • Compliance with labor and tax laws

  • Drafting clear agreements to prevent disputes

Benefits of Legal Planning

  • Reduces risk of litigation

  • Ensures smooth transfer of assets

  • Protects shareholders and stakeholders

“A well-structured M&A deal ensures legal compliance and sustainable business growth.”

FAQs

Q1. Is board approval necessary for mergers?
A: Yes, under Companies Act, 2013.

Q2. What is the role of Competition Commission?
A: To prevent anti-competitive practices during M&A.

Q3. Can minority shareholders oppose M&A?
A: Yes, through legal remedies under Companies Act provisions.

Q4. What is due diligence in M&A?
A: Detailed review of financial, legal, and operational aspects.

Q5. How long does M&A approval take?
A: Depends on complexity; can range from months to over a year.