Cross Border Merger and Acquisitions in India with special reference to FEMA

Priyanka Rathi

From a small town trader running a family business, to the fearless and braving
entrepreneur negotiating with multinational corporate powers to attract
investment in his Indian business, or acquiring foreign competitors and raring to
compete in the international arena, the image of corporate India has undergone a
sea change in the past few decades. Surely the founding fathers of the TATA
Group would not have dreamt about acquiring Ford, Jaguar Land Rover or
cracking the deal with Corus. With the cross border merger and acquisitions
activity in India growing at an exponential rate, a stage has been set for several
smaller business enterprises to take the plunge and this seems quite beneficial for
the Indian economy.

Due to globalization, liberalization, technological developments and the resultant intensely
competitive business environment, cross border mergers and acquisitions (hereinafter together
also referred to as “M&As”) have become very popular throughout the world in the recent times.
M&As have historically been the favourite tool used by companies for restructuring of their
business.
Though, various reasons for the rapid growth of M&As would be discussed
later in this work, it is important to note that the most crucial of all of them
has been that due to increasing competition and advanced technology, it has
become difficult for companies and other businesses to go forward and it has
compelled them to join hands with other parties. In such circumstances,
cross border transactions have emerged as good strategy. Cross border
M&As are one of the fastest ways of investing abroad and gaining access to
companies that are acquired abroad by way of market share.
If one sees the market records of past 25 years, it is apparent that there
have been two major waves of cross border M&A transactions. The first wave
was witnessed in the late 1980s, while the second, a big cross border buying
spree being in the later half of the 1990s. [1] It is pertinent to note that the
global economy experienced relatively high economic growth and
widespread industrial restructuring, during both these waves of cross border
M&As.

as the same may be fatal for the economic development and may result in discouraging foreign investors as well as domestic investors. leave alone investing abroad.Experience shows that cross border M&As can yield dividends.[6] .[2] Thereafter due to change in policies. most importantly the Companies Act. while regulating cross border M&As. As stated earlier. Foreign Exchange Management Act. when successful industrial restructuring leads to greater efficiency without undue market concentration. the Income Tax Act. 1992 and regulations made thereunder (hereinafter together referred to as “SEBI laws”). 1999 (“FEMA”) and regulations made thereunder.[4] INBOUND CROSS BORDER M&AS IN INDIA AND THE FEMA LAWS When we talk about inbound cross border M&As in India. i. 2002 etc. and the like. India became a closed economy. Coming to India. structuring exit options. Interestingly. (hereinafter to be interchangeably used with “non resident”) [5] is governed by FEMA 20. Hence it became nearly impossible for an Indian business firm to think of inviting foreign investment. investment in India by a “person resident outside India”. foreign investment in India. The concept of M&As gained popularity in India. the Securities and Exchange Board of India Act. defining the parties’ contractual obligations. seeking to acquire foreign companies. post independence.e. after the government introduced the new economic policy in 1991. and the legal aspects of these transactions include issues relating to duediligence. 1961 and the Competition Act. it is stated that the Indian legal system regulates and governs various aspects of a cross border M&A transaction by a set of laws.[3] Every merger or acquisition involves one or more methods of obtaining control of a public or private company. the Foreign Investment Policy of the government of India along with press notes and clarificatory circulars issued by the Department of Investment Policy and Promotion. thereby paving the way for economic reforms and opening up a whole lot of challenges both in the domestic and international spheres. 1956. in terms of a company’s performance and profits as well as benefits for home and host countries. the government has to be cautious to avoid any kind of over regulation. for about 10 years India was receptive towards foreign investment due to various reasons. we essentially mean foreign investment in India. Having said that. including circulars and notifications issued by the RBI from time to time (hereinafter together referred to as the “FEMA laws”). every legal system seeks to regulate it. Due to the positive as well as negative impact cross border M&As may have on the economy.

persons resident outside India are permitted to purchase shares or convertible debentures offered on a rights basis by an Indian company[8] which satisfies the conditions restated hereinbelow[9]: (i) The offer on right basis does not result in increase in the percentage of foreign equity already approved. (ii) The existing shares or debentures against which shares or debentures are issued by the company on right basis were acquired and are held by the person resident outside India in accordance with FEMA 20. under FEMA 20. the transferee company (whether the survivor or a new company) is permitted to issue shares to the shareholders of the transferor company who are persons resident outside India. an Indian company has been permitted to issue shares to its employees or employees of its joint venture / subsidiary abroad. However citizens of Bangladesh.Under FEMA 20. once a scheme of merger. the company will have to obtain the prior approval of the FIPB and the RBI before issuing shares to the non residents.[11] Under Regulation 7 of FEMA 20. general permission has been granted to any non-resident to purchase shares or convertible debentures of an Indian company under Foreign Direct Investment Scheme. (iii) The offer on right basis to the persons resident outside India is at a price which is not lower than that at which the offer is made to resident shareholders. either directly or through a trust. Pakistan or Sri Lanka resident outside India and entities in Bangladesh or Pakistan are not permitted to purchase shares or debentures issued by Indian companies or any other Indian security without the prior approval of the RBI. if he had any . subject to the terms and conditions specified in Schedule 1 thereto. who are non-resident. demerger or amalgamation has been approved by the court.[12] General permission has also been granted for transfer of shares / convertible debentures by a non-resident as follows:[13] (i) Non-residents other than non-resident Indians (“NRIs”) or Overseas Corporate Bodies (“OCBs”)[14] may transfer shares / convertible debentures to any non-resident. or permissible under the Foreign Direct Investment Scheme in terms of FEMA 20. If the new share allotment exceeds such limits. subject to the condition that the percentage of non resident holdings in the company does not exceed the limits for which approval has been granted by the RBI or the prescribed sectoral ceiling under the foreign direct investment policy set under the FEMA laws.[7] Further. provided that the transferee should have obtained permission of the Central Government.[10] Further. The rights shares so acquired shall be subject to the same conditions regarding repatriation as applicable to original shares.

provided that:[18] (i) The issuer company does not require an industrial licence.[17] For the purpose of FEMA 20. including the price at which the sale may be made. any shares or convertible debentures of Indian companies to other NRIs or OCBs only. the transferor will have to obtain the approval of the Central Government before applying to the RBI. whether incorporated or not. investment in India by a non-resident has been divided into the following 5 categories and the regulations applicable have been specified in respective schedules as under: (i) Investment under the Foreign Direct Investment Scheme (“the FDI Scheme”). may purchase shares or convertible debentures of an Indian company. the RBI may permit the transfer subject to such terms and conditions. FEMA 20 further stipulates that any transfer of security by a resident to a non-resident would require the prior approval of the RBI. (v) Purchase and sale of securities other than shares or convertible debentures of an Indian company by non-residents. NRIs or OCBs are permitted to transfer by way of sale.(ii) (iii) previous venture or tie-up in India through investment in any manner or a technical collaboration or trademark agreement in the same or allied field in which the Indian company whose shares are being transferred is engaged. (ii) The shares are not being issued for acquiring existing shares of another Indian company. (iii) Investment by NRIs/OCBs under the Portfolio Investment Scheme. [16] In such cases. FDI Scheme Under the FDI Scheme. he should have obtained the Central Government’s . (iv) Purchase and sale of shares by NRIs/OCBs on non-repatriation basis. (ii) Investment by Foreign Institutional Investors (“FIIs”) under the Portfolio Investment Scheme (“the Portfolio Investment Scheme”). (iii) If the non resident to whom the shares are being issued proposes to be a collaborator. on a repatriation basis.[15] For the transfer of existing shares/convertible debentures of an Indian company by a resident to a non resident by way of sale. The following are the prominent features of the schemes listed above: I. Any Indian company which is not engaged in the activity or manufacture of items listed in Annexure A to the FDI Scheme has been permitted to issue shares to a non resident up to the extent specified in Annexure B to the FDI Scheme. a non resident or a foreign entity. Non-residents are permitted to transfer shares / debentures of any Indian company to a resident by way of gift.

. provided such investment is made out of funds raised or collected or brought from outside India through normal banking channel. Investment by NRIs/OCBs under the Portfolio Scheme Under Schedule 3.[21] RBI may also permit a domestic asset management company or a portfolio manager registered with SEBI as FIIs for managing the sub-account to make investment under the Portfolio Investment Scheme on behalf of nonresidents who are foreign citizens and bodies corporate registered outside India. Such investment is restricted to 5% of the equity capital or 5% of the paid-up value of each series of convertible debentures within the overall ceiling of 24% or 40% as applicable for FIIs for the purpose of the Portfolio Investment Scheme. Ministry of Commerce. through a registered broker on a recognised stock exchange. New Delhi.approval if he had any previous investment/collaboration/tie-up in India in the same or allied field in which the Indian company issuing the shares is engaged. subject to the following conditions[24]: (i) The NRI/OCB designates a branch of an authorised dealer for routing his/its transactions relating to purchase and sale of shares/ convertible debentures under the Portfolio Investment Scheme. to persons resident outside India subject to the condition that remittance of dividend to the shareholders outside India is made only after the company has secured registration as an export/trading/star trading /super trading house from the Directorate General of Foreign Trade. and routes all such transactions only through the branch so designated.[20] A registered FII is also permitted to purchase shares/convertible debentures of an Indian company through private placement/arrangement. subject to the prescribed ceilings. a trading company incorporated in India may issue shares or convertible debentures to the extent of 51% of its capital. Further. a NRI/OCB is permitted to purchase/sell shares and/or convertible debentures of an Indian company. Government of India. and provides that the total holdings of all FIIs/sub-accounts of FIIs put together shall not exceed 24% of paid-up equity capital or paid up value of each series of convertible debentures.[19] It also prescribes a ceiling of 10% of the total paid-up equity capital or 10% of the paid-up value of each series of convertible debentures.[22] The designated branch of an authorised dealer is authorised to allow remittance of net sale proceeds (after payment of taxes) or to credit the net amount of sale proceeds of shares / convertible debentures to the foreign currency account or a non-resident rupee account of the registered FII concerned.[23] III.

[26] . foreign investment by an Indian company in a foreign company is governed by FEMA and FEMA 19.(ii) (iii) (iv) (v) (vi) (vi) The paid-up value of shares of an Indian company. does not exceed 5% of the paid-up value of shares issued by the company concerned. An Indian party is not permitted to make any direct investment in a foreign entity engaged in real estate business or banking business without the prior approval of RBI. The OCB informs the designated branch of the authorised dealer immediately on the holding/interest of NRIs in the OCB becoming less than 60%. Payment for purchase of shares and/or debentures is made by inward remittance in foreign exchange through normal banking channels or out of funds held in NRE/FCNR account maintained in India if the shares are purchased on repatriation basis and by inward remittance or out of funds held in NRE/FCNR/NRO/NRNR/NRSR account of the NRI/OCB concerned maintained in India where the shares/debentures are purchased on non-repatriation basis. purchased and/or sold by each NRI /OCB.e. The NRI/OCB takes delivery of the shares purchased and gives delivery of shares sold. The paid-up value of each series of convertible debentures purchased by each NRI/OCB both on repatriation and non-repatriation basis does not exceed 5% of the paid-up value of each series of convertible debentures issued by the company concerned. Paragraph 2 of Schedule 3 further provides that the link office of the designated branch of an authorised dealer is obliged to furnish furnish daily report to the Chief General Manager. The aggregate paid-up value of shares of any company purchased by all NRIs and OCBs does not exceed 10% of the paid up capital of the company and in the case of purchase of convertible debentures the aggregate paid-up value of each series of debentures purchased by all NRIs and OCBs does not exceed 10% of the paid-up value of each series of convertible debentures[25]. i. There are only certain special circumstances under which an Indian company is permitted to make an investment in a foreign company. REGULATION OF OUTBOUND CROSS BORDER M&A TRANSACTIONS UNDER FEMA LAWS As stated. Reserve Bank of India (ECD) detailing the name of the NRI/OCB and the company wise number of shares and/or debentures and paid-up value thereof. purchased by each NRI/OCB both on repatriation and on non-repatriation basis. any outbound cross border M&A involving an Indian company.

(ii) In respect of direct investment in Nepal or Bhutan. (vi) The Indian company files the prescribed Form ODA to the designated branch of the authorised dealer for onward transmission to the RBI.[29] Under Regulation 10. Direct Investment in a Joint Venture/Wholly Owned Subsidiary RBI has been continuously relaxing the provisions relating to direct investment in a joint venture or a wholly owned subsidiary. (v) The Indian company routes all the transactions relating to the investment in the joint venture or the wholly owned subsidiary through only one branch of an authorized dealer to be designated by it. within the permissible financial commitment. without seeking the prior approval of RBI subject to the following conditions being fulfilled[27]: (i) The total financial commitment of the Indian party will be capped at USD 50 Million or its equivalent in a block of 3 financial years including the year in which the investment is made. in Indian rupees the total financial commitment shall not exceed Indian Rupees 1.There are several routes available to an Indian company which intends to invest in a foreign company. Drawal of foreign exchange and ADR/GDR proceeds etc[28] An Indian Party is also eligible to extend a loan or a guarantee to or on behalf of the Joint Venture/ Wholly Owned Subsidiary abroad. However the Indian company is permitted to designate different branches of authorized dealer for onward transmission to the RBI.200 Million in a block of 3 financial years including the year in which the investment is made. if the Indian Party has made investment by way of contribution to the equity capital of the Joint Venture. (iii) The direct investment is made in a foreign entity engaged in the same core activity carried on by the Indian company. Sources for investment The Regulations also prescribe that any direct investment (as discussed above) must be made only from the following sources like EFFC account. Owing to these relaxations the percentage of investment by Indian companies in joint ventures and wholly owned subsidiaries abroad has been continuously rising. RBI is required to allot a unique identification number for each Joint Venture/Wholly Owned Subsidiary outside India and the Indian . (iv) The Indian company is not on the RBI’s caution list or under investigation by the Enforcement Directorate. except investment in a Joint Venture/Wholly Owned Subsidiary in Nepal and Bhutan. some of which are described herein below: I. General conditions to be fulfilled for making an investment An Indian company is permitted to make a direct investment in a joint venture or a wholly owned subsidiary outside India.

000 Million in the previous 3 financial years from the activities/sectors included in Schedule 1 to FEMA 19.party is in turn required to quote such number in all its communications and reports to the Reserve Bank and the authorised dealer.[30] II. is to be made in Form ODI. or b. (iv) The ADR/GDR issue is backed by a fresh issue of underlying equity shares by the Indian company. In considering the application. .[32] III. (v) The total holding in the Indian company by non-resident holders does not exceed the prescribed sectoral cap. (ii) Contribution to external trade and other related benefits. [33] Such application for direct investment in Joint Venture/Wholly Owned Subsidiary outside India. RBI approval in special cases In the event that the Indian company does not satisfy the eligibility conditions under Regulations 6. as stated hereinabove. (vi) The valuation of the shares of the foreign company is done in the following manner: a. then as per the recommendation of an investment banker. If the shares of the foreign company are listed then as per the formula prescribed therein. the Indian company is required to submit a report in Form ODG with RBI. 7 and 8. If the shares of the foreign company are not listed. or in Form ODB. it may make an application to RBI for special approval. (iii) At least 80% of the average turnover of the Indian Party in the previous 3 financial years is from the activities/sectors included in Schedule or the Indian Party has an annual average export earnings of at least Indian Rupees1. Investment in a foreign company by ADR/GDR share swap or exchange An Indian company can also invest in a foreign company which is engaged in the same core activity in exchange of ADRs/GDRs issued to the foreign company in accordance with the ADR/GDR Scheme for the shares so acquired provided that the following conditions are satisfied[31]: (i) The Indian company has already made an ADR/GDR issue and that such ADRs/GDRs are currently listed on a stock exchange outside India. or by way of exchange for shares of a foreign company. Within 30 days from the date of issue of ADRs/GDRs in exchange of acquisition of shares of the foreign company. respectively. (ii) The investment by the Indian company does not exceed the higher of an amount equivalent to USD 100 Million or an amount equivalent to 10 times the export earnings of the Indian company during the preceding financial year. the RBI may take into account the following factors[34]: (i) Prima facie viability of the joint venture/wholly owned subsidiary abroad.

shares held in a Joint Venture or Wholly Owned Subsidiary outside India as a . [36] V.[37] VI. if already allotted by RBI. commissions or other entitlements of the Indian party due from the foreign entity for the supply of technical know-how. and also quoting identification number. An Indian Party exporting goods/software/plant and machinery from India towards equity contribution in a Joint Venture or Wholly Owned Subsidiary outside India is required to declare it on Form GR or SDF or SOFTEX. such proceeds can not be capitalised without the prior permission of RBI. (ii) Fees. as the case may be. consultancy. or any further time as permitted by it. an Indian Party is also entitled to make direct investment outside India by way of capitalisation in full or part of the amount due to the Indian Party from the foreign entity as follows:(i) Payment for export of plant. except as otherwise provided in FEMA laws or with the permission of RBI.(iii) (iv) Financial position and business track record of the Indian company and the foreign company. equipment and other goods/software to the foreign entity. royalties. by super scribing the same as “ Exports against equity participation in the JV/WOS abroad”. IV. Pledge of Shares of Joint Ventures and Wholly Owned Subsidiaries Further. Direct investment by capitalization: As per Regulation 11. by way of pledge. machinery.[35] An Indian Party capitalising exports under Regulation 10 is required to submit to RBI copy/ies of the share certificate/s or any document issued by the Joint Venture or Wholly Owned Subsidiary outside India to the satisfaction of RBI evidencing the investment from the Indian Party together with the duplicate of Form GR / SDF / SOFTEX through the branch of an authorised dealer designated by it. within 6 months from the date of export. FEMA 19 permits an Indian party to transfer. however where the export proceeds have remained unrealised beyond a period of 6 months from the date of export. Transfer by way of sale of shares of a JV/WOS No Indian party is entitled to sell any share or security held by it in a Joint Venture or Wholly Owned Subsidiary outside India. managerial or other services. to any person. and Expertise and experience of the foreign company in the same or related line of activity of the joint venture or the wholly owned subsidiary abroad.

has probably been the most significant catalyst for the growth of cross border M&A transactions involving India. is obliged to: (i) Receive share certificates or any other document as an evidence of investment in the foreign entity to the satisfaction of RBI within 6 months. Further since IDRs in their existing form do not have voting rights. technical fees etc.[40] It has also clarified that payment by the foreign company to shareholders of listed Indian companies being merged can be made in the form of cash. (ii) Repatriate to India. the law has to be changed to incorporate this . or such further period as RBI may permit. the press has reported of a decision by RBI that Indian companies merging with overseas firms will continue to be treated as entities resident in the country under FEMA and FEMA will be accordingly amended. and the deregulation and privatization of many industries. Recently. easing of restrictions on foreign investment and acquisition. including. all dues receivable from the foreign entity. an Indian party which has acquired foreign security by way of direct investment in accordance with FEMA 19. from the date of effecting remittance or the date on which the amount to be capitalised became due to the Indian party or the date on which the amount due was allowed to be capitalised.[38] VII.security for availing of fund based or non-fund based facilities for itself or for the Joint Venture or Wholly Owned Subsidiary from an authorised dealer or a public financial institution in India. or such further period as RBI may permit. within 60 days of its falling due. an annual performance report in Form APR in respect of each Joint Venture or Wholly Owned Subsidiary outside India set up or acquired by the Indian party and other reports or documents as may be stipulated by RBI. like dividend. (iii) Submit to RBI every year within 60 days from the date of expiry of the statutory period as prescribed by the respective laws of the host country for finalisation of the audited accounts of the Joint Venture/Wholly Owned Subsidiary outside India or such further period as may be allowed by Reserve Bank. royalty. The sea change in trade and investment policies and the regulatory environment in the past decade. Obligations of the Indian Party Under Regulation 15.[39] CONCLUSION The legal and financial reforms by the government of India since the early 1990's have resulted in substantial growth of the Indian economy.. shares or Indian Depository Receipts (“IDRs”) issued by the overseas companies.

[4] . We believe that India will keep signing on the screen of cross border M&As and would regain its status of the “Golden Bird”. available at http://findarticles.html (last accessed on 25 November 2009). [3] . The term “person resident outside India” is defined as meaning “a person who is not resident in India” under Section 2 (w) of FEMA. Premnath Rai.change. available at http://ideas. or (b) for carrying on in India a business or vocation in India. otherwise than (a) for or on taking up employment in India. in either case (a) for or on taking up employment outside India..org/a/eaa/aeinde/v4y2004i1_30.A PRACTICAL INSIGHT TO CROSS-BORDER MERGERS AND ACQUISITIONS. (ii) any person or body corporate registered or incorporated in India. CROSS-BORDER MERGERS SHOW RISING TREND AS GLOBAL ECONOMY EXPANDS. INDIAN ECONOMY IN THE NEXT FIVE YEARS: KEY ISSUES AND CHALLENGES. available at www. (f) every artificial juridical person. not falling within any of the preceding sub-clauses. (d) a firm. . MERGERS AND ACQUISITIONS 2008 . Platt Gordon. the consequential domestic economic growth has enabled the Indian entrepreneurs to come out and explore business avenues on a global level. Indian economy is proving itself highly conducive to foreign investment. (b) a Hindu undivided family.co. Global Legal Group. office or branch owned or controlled by such person. or (c) for any other purpose. or (b) for carrying on outside India a business or vocation outside India. ‘Person’ is defined under Section 2 (u) of FEMA as: “(a) an individual. whether incorporated or not. [1] . or (c) for any other purpose. 20052009. This will be important if the merger involves allotting voting rights to Indian shareholders or some sort of management control.uk (last accessed on 25 November 2009).com/p/articles/mi_qa3715/is_200412/ai_n9466795/ (last accessed on 25 November 2009). [5] . in such circumstances as would indicate his intention to stay outside India for an uncertain period. [41] While the government policies supporting foreign investment have led to a renewed interest by foreign investors and the consequent flow of overseas funds into India. (e) an association of persons or a body of individuals. for understanding the meaning of the term “ person resident outside India” it is necessary to understand the meaning of the term ‘person’ and “person resident in India”.” Section 2 (v) of FEMA defines “person resident in India” as meaning: “(i) a person residing in India for more than 182 days during the course of the preceding financial year but does not include (A) a person who has gone out of India or who stays outside India. (B) a person who has come to or stays in India. in either case. and (g) any agency. (c) a company. in such circumstances as would indicate his intention to stay in India for an uncertain period.ICLG. Chaitanya K.repec. Therefore.

Regulation 10. directly or indirectly. partnership firm. [18] . Master Circular No. Paragraph 3 of Schedule 2 to FEMA 20. 314. i. p. [8] . Regulation 6. Regulation 6 (2). FEMA 20. [25] [26] . Regulation 9. p.(iii) an office. FEMA 19. FEMA 20.2/2009-10. [28] [29] .e. Proviso to Regulation 7 (1) (a). the limit of 24% may be increased to 40% by the Indian company concerned by passing a resolution by its Board of Directors followed by passing of a special resolution to that effect by its general meeting. [12] . [17] . Regulation 5 (1).INDIA UPDATE. Regulation 6 (3). [19] . Regulation 6(5). FEMA 20. Paragraph 2(2) of Schedule 1 to FEMA 20. . under the Proviso to Paragraph 4. [16] . [22] . Ibid. Abhyankar. [23] . [24] . (iv) an office. FEMA 20. However. branch or agency outside India owned or controlled by a person resident in India. [14] . INTERNATIONAL FINANCIAL MARKETS . FEMA 20. Sharad D. FEMA 19. FEMA 19. society and other corporate body owned directly or indirectly to the extent of at least 60% by NRIs and includes overseas trust in which not less than 60% beneficial interest is held by NRIs. dated 1 July 2009. FEMA 20. Regulation 5. FEMA 19. . (2000) 15(12) JIBL 310. FEMA 20. [27] . [9] .” [6] . Regulation 10A (b). Regulation 6 (3). the proviso to the said provision provides that the aggregate ceiling of 10% may be raised to 24% if a special resolution to that effect is passed in a general meeting of the shareholders of the Indian company concerned. FEMA 19. Regulation 6 (1). . ‘Overseas Corporate Body’ or OCB means a company. Schedule 1 to FEMA 20. [13] . but irrevocably. FEMA 20. However. Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations. [20] [21] Paragraph 1(5) of Schedule 2 to FEMA 20. [10] [11] . See. 4. . branch or agency in India owned or controlled by a person resident outside India. [30] . Regulation 8. [7] . . Paragraph 4 of Schedule 2 to FEMA 20. Paragraph 1 of Schedule 3 to FEMA 20. MASTER CIRCULAR ON FOREIGN INVESTMENT IN INDIA. [15] . 2000.

.com/india/news/fema-to-apply-to-reverse-overseas-massays-rbi/372711/ (last accessed on 27 November 2009). FEMA 19. FEMA 19. Regulation 8.business-standard. FEMA 19. . FEMA 19. Anjali Agarwal. (2009) 24 (7) JIBLR 375. FEMA 19. Regulation 8(2). . Ibid. . Regulation 17. Business Standard.STRUCTURING THE DEAL!. Regulation 12 (1). Regulation 12 (3). [35] [36] [37] . . FEMA 19. FEMA 19. Regulation 15. SAYS RBI. [38] . [34] . [33] . [39] [41] . INBOUND INVESTMENTS INTO INDIA . FEMA TO APPLY TO REVERSE OVERSEAS M&AS. [40] . Regulation 16. Anindita Dey. Regulation 9. 9 October 2009. FEMA 19. available at http://www.[31] [32] .