New Companies Bill to Trigger M&A, Empower Private Equities () The new Companies Bill will make acquisitions,

mergers and restructuring easier for companies, empowering private equity investors to enforce various agreements and check misuse by promoters by increasing transparency. The bill passed by the Upper House of Parliament is waiting for Presidents approval. It will replace the Companies Act of 1956. The new law says any contract or arrangement between two or more persons on transfer of securities shall be enforceable as a contract. PE investors who until now have been unable to enforce strict condition in their agreements with promoters will be able to use clauses such as tag along and drag along. A tag along clause helps protect a minority shareholder as he can sell his stake along with the majority shareholder, while a drag along clause gives right to a majority shareholder to force a minority shareholder to sell stake. The new law also allows an Indian company to merge with a foreign company making cross border mergers and acquisition easier. Bamboo Scarcity, Labour Issues Hit Agarbatti Makers