Recent RBI Changes Expand M&A Flexibility for Foreign Companies in Deferred Consideration Deals

May 2025Mergers & Acquisition General

Abstract

The Foreign Exchange Management Act, 1999 (the “FEMA”), along with the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (the “NDI Rules”), constitutes the primary legal framework governing foreign equity investments (both direct and indirect) in India. Additionally, instructions issued on foreign investment in India and its related aspects under the FEMA in the ‘Master Directions on Foreign Investment in India’ (the “Master Directions”), issued by the Reserve Bank of India lay down the modalities as to how the foreign exchange business has to be conducted with a view to implementing the NDI Rules. The FEMA read with the NDI Rules, and the Master Directions, collectively forms the comprehensive "FDI Regime" for foreign investments in India.

Subscribe to reador

Hostile takeovers have traditionally played only a limited role in the mergers and acquisitions landscape in India. This is attributable primarily to the ownership structure of most listed Indian companies,...Read more

Vikas Agarwal

Co-Founder, LegaLogic Consulting, India

Neha Deshmukh

Legal Advisor, LegaLogic Consulting, India

The rationality of legislators and business realities in M&A processes – the changing role of in-house lawyers – from advisors to strategic partners

The current regulatory environment in the European Union, but also in Poland, poses challenges for businesses that go beyond the traditional legal framework. Dynamic legislative changes, often introduced without public...Read more

Magdalena Kawczynska

Legal Director/CEE&Baltics, Ayvens, Poland

Recent RBI Changes Expand M&A Flexibility for Foreign Companies in Deferred Consideration Deals

Abstract

Related Papers