Cross-border merger under FEMA Cross Border Merger Regulations, 2018
Enables Indian-foreign company mergers (inbound and outbound). Inbound: foreign assets get 2-year compliance window. Outbound: resident shareholders via LRS / ODI.
Sign in to read the full answer
Create a free account — showcase questions, bookmarks, and progress tracking, at no cost.
Related questions
Ranked by topic overlap with this question.
FEMA implications in cross-border M&A — inbound and outbound
Inbound: FDI routes apply; valuation as per DCF / SEBI norms. Outbound: ODI framework with 400% net-worth cap and Form FC. Cross-border mergers per RBI 2018 Regulations.
Difference between Merger, Demerger and Slump Sale
Merger combines two entities into one. Demerger spins off an undertaking. Slump sale transfers an undertaking for lump-sum consideration without itemised valuation.
Automatic Route vs Approval Route for FDI
Automatic: no prior approval; only post-investment reporting. Approval route: government clearance via FIFP for sensitive sectors and from land-border countries.
Compounding of contraventions under FEMA
Voluntary admission of contravention; compounded by RBI/Directorate of Enforcement; no criminal prosecution post-compounding; quantum based on Master Direction matrix.
Annual Return on Foreign Liabilities and Assets (FLA)
Filed on RBI FLAIR portal by Indian entities with FDI/ODI/foreign assets/liabilities by 15 July each year. Required even if no transactions during the year.