merger

The merger of Mahindra Satyam and Tech Mahindra may get delayed on account of legal and procedural issues, a company official said today. 'Integration involves some legal process. We have to approach the High Courts of Andhra Pradesh and Maharashtra for approvals and there can be delays. We are still looking at April-May of next year', Mahindra Satyam Chairman Vineet Nayyar said after announcing the financial results. Full Article

The regulations governing mergers, acquisitions and combinations under the Competition Act would be finalised by May 1, and implemented from June 1, said Minister for Corporate Affairs, Murli Deora, here today. The revised draft of regulations is in the final stages and we expect the notification to be finalised by May 1," he told reporters at an event organised by the Indian Merchants Chamber (IMC) here today. Full Article

The Delhi government on Monday cleared the proposal to withdraw a 1937 notification wherein subsidiaries seeking merger with their parent company are exempt from stamp duty. The Delhi cabinet led by chief minister Sheila Dikshit has decided to withdraw a notification dated January 16, 1937 issued under the Indian Stamp Act, 1899, which envisages exemption from stamp duty on instruments evidencing transfer of property between companies limited by shares as defined in the.. Full Article

Provisions of the proposed direct taxes code will strengthen India’s tax demands on cross-border acquisitions involving Indian companies. Section (5) of the code stipulates that tax is payable in India whenever a foreign company’s shares are transferred, if at least 50% of its assets are situated in India. Full Article

The Supreme Court judges hearing a petition against the merger of Bank of Rajasthan (BoR) with ICICI Bank on Wednesday described it as an “abuse of process of law” and asserted that they would not hear the case unless the petitioner disclosed in an affidavit how many shares he held in BoR. Full Article

It’s official now. The two banks - The Bank of Rajasthan Ltd and ICICI Bank Ltd, the two private sector banks, one old generation and the other new generation bank are set to marry soon. While the board of both banks have approved the in principle merger, it may take couple of months to get shareholder’s approvals (meetings planned for 21st June) regulatory clearances and other procedural hurdles cleared. Full Article

Last fortnight, the Authority for Advance Rulings (AAR) delivered an important ruling on tax neutrality in relation to cross border mergers. The significance of ruling in the present context is attributable to tax administration’s ongoing stance that business restructuring is motivated for tax avoidance purposes and hence tax neutrality should be denied. Full Article

The Court held that the role of court in proceedings under section 394 of the Companies Act is merely supervisory in nature and the order passed is based on the consent and voluntary act of the parties involved. Accordingly, even in the absence of specific entry for such orders in the stamp duty schedule, the court orders are covered within the ambit of the definition of 'conveyance', which has a wide meaning and is not confined to specific instruments mentioned in the s.. Full Article