Terming existing corporate laws as complex and not conducive to overseas M&A by domestic firms, CII today asked the government to facilitate such deals by easing regulatory norms to increase the presence of Indian firms in global markets.
“… The growth of the Indian multinational is severely restricted by the regulatory framework for cross-border transactions,” CII said.
In a memorandum to the Department of Industrial Policy and Promotion, which frames FDI norms in the country, the chamber said several provisions in different regulations like the Companies Act, Competition Act and SEBI Takeover Code, overlap and are conflicting.
“… (Overlapping and conflicting provisions) impose substantial restrictions on the quantum and size of overseas deals,” it said.
Citing an example, the CII said the process of mergers and acquisitions under the existing Companies Act is a long court-driven process.