A Critical Analysis of the Legal Framework of Mergers and Acquisition with Special Reference to the Competition Act,2002

Abstract

The nation's economic environment has undergone major change as a result of the Liberalisation, Privatisation, and Globalisation process, which was initiated in the early 1990s.1 This economic reform process has increased competition from within India and from abroad. In order to compete with these rivals, the Indian business sector has repeatedly tried to reorganize. The businesses use a variety of strategies. In India, a specific set of regulations and legislation have been implemented regarding mergers and acquisitions. According to one inflexible viewpoint, individuals are biased, overconfident, and scared of economic power because of the resistance to the development of integration. Contrarily, the scale economies, social benefits, technical innovation, expansion, and competitiveness of the Indian corporate sector, which are the main driving forces, have gotten a lot of support for various M&A activities. Due to changing laws and regulations, intense competition, and the aggressivity of Indian corporate organisations, synergy formulas have seen substantial changes. In India, the process of mergers and acquisitions is overseen by a number of laws and regulations. Since June 1, 2011, The Competition Act of 2002 is a significant law that regulates combinations in India specifically section 6 and section 5 of the Act. The Indian Stamp Act of 1899, the SEBI SAST Regulations of 1997, 2011, the Income Tax Act, of 1961, the Foreign Exchange and Management Act of 1999, and the Intellectual Property Rights Act are additional laws that deal with mergers and acquisitions in India.