Hostile Takeovers Under Indian Law: Is This A Possibility?
- IJLLR Journal
- Jan 15
- 1 min read
Om Radheshyam Nishad, Pursuing Post Graduation - GLC, Mumbai BLS LLB Graduate from Adv. Balasaheb Apte College of Law
ABSTRACT
This paper examines the question of whether hostile takeovers are really possible under the Indian law. The paper contends that it is not only about legal barriers that the limited number of hostile takeovers can be explained. It points out that Indian takeover law is mainly a set of rules for acquisition but does not go so far as to endorse hostile bids as a device of governance.
The paper, through doctrinal investigation, historical development, and comparative study, shows that a few factors, such as concentrated promoter ownership, limited public float, passive shareholding patterns, financing constraints, regulatory timelines, and information asymmetries, have together made it very difficult for hostile takeovers to become a reality. The paper arrives at the point that even though Indian law allows hostile takeovers, they cannot be successfully implemented in India's current corporate and regulatory environment, and thus, to a great extent, their existence remains only a theoretical possibility.
Keywords: Hostile Takeovers, Indian Corporate Law, Takeover Regulation, Corporate Control, Promoter Ownership, Corporate Governance
