National Security Screening In Cross-Border M&A: The Indian Approach
- IJLLR Journal
- Apr 21
- 1 min read
Era Gangwar, Thakur Ramnarayan College of Law, Mumbai, India
ABSTRACT
This paper analyzes the interplay of national security review and cross-border M&A regulations in India. First, the paper maps out the development of FDI-scrutiny mechanisms in India, particularly the changes introduced through Press Note No. 3 issued in 2020 (PN3) as well as its broader context provided by the Foreign Exchange Management Act, 1999 (FEMA), the Companies Act, 2013, and sector-specific security clearance requirements. Further, the paper analyses the implications of national security considerations on timelines and transaction structuring in the cross-border M&A process and their impact on foreign investment flows into India. Thereafter, India’s regulatory regime is contextualized against the trend of “FDI-screening” in the US and EU jurisdictions.
Keywords: National security screening, cross-border M&A, FDI-screening, India, FEMA, border-country investment, national-security-based review.
