Back to top The period since has seen historic changes in the legal and regulatory scenario in India. Be it the implementation of the GST or the consolidation of the insolvency regime for corporates and natural persons in one legislation, investor confidence has grown, and the effects can be seen in the economic growth achieved by India in these last few years.
The anti competitive nature of such mergers and acquisition is regulated by the competition commission of India under the competition act, Till now all mergers and acquisitions related anti competition issues of banks are governed by the competition commission of India.
Before the Parliamentary Standing Committee on Finance, it has been suggested that the exemption of bank mergers etc.
As Reserve Bank of India has been entrusted with the mandate to grant approval for acquisitions, transfer, mergers etc. The Committee also recommended that the Government can consider the merits of issuing non-voting shares as an avenue to expand the capital base of banks without allowing concentration of management control in a few hands and which would also enable them to grow faster.
The Committee also felt that as amendments are being proposed by Government frequently in banking law covering different aspects at different points of time, the Committee would recommend that the Government, instead of bringing piecemeal amendments, should consider formulating an integrated modern banking law for Indiawhich will be comprehensive and will consolidate all related provisions and aspects of banking presently dispersed in different statutes.
It may include such other fresh and forward-looking proposals reflecting emerging realities as may be considered necessary by the Government for inclusion in the integrated banking law.
Clearly, once the proposed amendments are passed, the mergers and acquisitions of banks will now come under the purview of the Banking Regulation Act. Other banking related reforms are also in pipeline. The main objective of constitution of FSLRC is to rewrite and harmonise financial sector legislations, rules and regulations.
Some of the areas that FSLRC can analyse and consider pertain to merger and acquisition norms, non banking financial companies regulation, wealth management regulations, cyber security for banking and financial institutions, due diligence by banks and financial sectors of India, etc.
Banking related mergers and acquisitions in India are heading for a big change and all those interested in the same must keep a close watch upon it.Any acquisition of shares, voting rights or assets that exceeds specific thresholds, acquisition of control, and mergers or amalgamations (all are broadly categorised as combinations) crossing certain thresholds require the approval of the CCI.
The recent Mergers and Acquisitions of Banks throws us to the back to the History of India when various small banks were merged together or with some large bank.. In , Imperial Bank of India was formed by the amalgamation of the three presidency banks viz.
The Bank of Calcutta, The Bank of Bombay, and The Bank of Madras. Indian markets have witnessed burgeoning trend in mergers which may be due to business consolidation by large industrial houses, consolidation of business by multinationals operating in India, increasing competition against imports and acquisition activities.
From Financials and Germany 20 Sep UTC Germany ponders further foreign takeover restrictions In a development which underlines the continuing sensitivity of Western governments to Chinese outward investment, a spokeswoman for the German. Jan 13, · By Bryan Borzykowski.
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