Securities Law With Special Focus On Mergers And Acquisitions
- IJLLR Journal
- Jan 21
- 1 min read
Tarushi Batra, University of Petroleum and Energy Studies (UPES)
I. ABSTRACT
Securities Market is regulated by SEBI, SEBI makes sure that security market is transparent and investors in market stay informed about companies in which they are interested to invest. Therefore, if we talk about Mergers and Acquisitions, it is one of the most common way in which companies can improve them and can increase their share in market which can be very beneficial for both the companies and investors must be aware about this if any company mergers or if one company acquires the other company so that they can invest in their suitable companies in which they think they can gain profit. SEBI makes sure that information about merger and Acquisitions must be made public and some information that needs to be made public includes the terms and conditions of the proposed merger or acquisition, the firms' valuations, and any possible risks or rewards related to the deal. Additionally, SEBI outlines how to get stock exchange approval for mergers and acquisitions. The companies engaged in the M&A deal are required to submit a draft merger or acquisition plan for approval to the stock markets. Information regarding the participating companies, the share exchange ratio, and the advantages and disadvantages of the deal must all be included in the plan. Following their examination of the plan, the stock exchanges will grant their approval if they determine that it complies with SEBI laws.
Keywords: Securities, SEBI, Merger &Acquisitions, share, stock markets etc.
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