While Indian corporates are aggressively expanding their horizons their counterparts offshore are acquiring in India. While availability of funds is a favourable driver for investments, it has been the structuring options devised for Indian acquirers which have enabled them to make acquisitions offshore. Nevertheless, such hurdles should not be seen as a deterrent. This article describes the issues and regulatory hurdles and provides an overview of corporate structures and agreements used in mergers, amalgamations and acquisitions before describing how Indian companies are allowed to access funds from abroad. It then looks into domestic sources of .finance, statutory restrictions on loans from Indian banks, limits on capital market exposure, structured instruments, Indian depository receipts, terms of .financing documents, taking security in India, inter-creditor arrangements and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002.
Business Law Review