Cross-Border M&A and IBC’S Influence on Foreign Investors: Challenges, Harmonization, and Way Forward
The coming of the Insolvency and Bankruptcy Code of 2016 has changed the Indian distressed asset scenario by institutionalizing time-bound insolvency proceedings and creating opportunities for mergers and acquisitions (M&A), mostly those that involve foreign investors. this paper aims to critically examine the intersection of the cross-border merger and IBC regime while also focusing on the legal regulatory and jurisdictional complexities that foreign investors often have to face when they are seeking to acquire an Indian company undergoing insolvency resolution. It also explores the interplay of different laws such as the Foreign Exchange Management Act 1999, the Foreign Direct Investment Policy and other sector-specific regulations, and we will also analyze the case laws in order to understand the cross-border insolvency better.
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