Friday, November 2, 2007
Cross border supervision of Mergers & Acquisitions
RBI has constituted a working group to lay down a road-map for adoption of a suitable framework for cross-border supervision with overseas regulators. This framework would be consistent with the framework envisaged in the Basel Committee on Banking Supervision (BCBS)
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2 comments:
Dear Mr Ritesh,
Can you elaborate on a road-map for adoption of a suitable framework for cross-border supervision with overseas regulators.
Though RBI has not elaborated the need and procedure, what I understand from this step is the need of a regulatory framework to check the motives behind acquisitions by foreign companies of Indian companies.
We all know the Indian growth story and growing interest of foreign companies in India; more and more foreign companies are also interested in acquiring Indian companies to gain a foothold in India.
This framework may lay the platform of acquisition according to the internationally accepted norms. It may check whether the real motive behind the acquisition is growth or developing monopolistic or anti fair trade practices.
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