Is Corporate Restructuring A Strategic Investment Tool Under The Indian Legislative Framework?
- IJLLR Journal
- Mar 27
- 2 min read
Haya Khan, B.A. LL.B. (h) Amity Law School, Amity University Kolkata
Iqra Khan, B.A. LL.B. (h) Amity Law School, Amity University Kolkata
ABSTRACT
Corporate restructuring is a process in which the structure of a company is changed for long-term benefits enjoyed not only by businesses but also by stakeholders. This improves the performance of the company and its corporate governance. The process of Corporate governance involves several commercial transactions and, over time, has evolved as a critical and essential tool for businesses to adapt to the dynamic changing markets, increase shareholder value, and optimize resources. It is used as an important tool for driving progress and attracting investment. However, the restructuring process in India, is highly run under regulations that overlap, resulting in delays, investor concerns, and inefficiencies in the overall procedure. The size of the company and impact of restructuring are important determining factors for its validity and potential implications.
This essay argues for the absence of a consistent regulatory framework within the Indian legislature for corporate restructuring, which weakens India’s ability to attract domestic and global investments. The whole process of restructuring can frequently raise jurisdictional objections in investor-state disputes, with tribunals (NCLT) challenging the initiations of restructuring to be genuine enough or just a mere aim to circumvent treaty obligations. The essay intends on understanding how the overlapping jurisdiction of key regulatory bodies, such as the National Company Law Tribunal (NCLT), the Securities and Exchange Board of India (SEBI), and the Reserve Bank of India (RBI), highlights the issues and relevant challenges faced by stakeholders, and proposing actionable reforms to simplify the restructuring process. In conclusion, the corporate restructuring process should only survive in an environment where regulatory overlap is reducing as it is crucial to reinforcing India’s reputation as an investment-friendly nation.
Keywords: Corporate Restructuring (CR), Investment Law (IL), Stakeholder Protection, regulatory Complexity, Judicial Delays, Cross- border merger, policy gaps.
