Owing to market dynamics and in an attempt to clear certain regulatory cobwebs, the Securities and Exchange Board of India recently issued a circular which applies to all mergers, demergers, amalgamations and arrangements filed with a stock exchange after 17 November 2020. While the circular will undoubtedly ensure higher levels of transparency and disclosure with respect to proposed schemes, it has introduced additional responsibilities for listed companies' audit and independent directors' committees.
The year 2020 has had an adverse effect on economies worldwide. Companies face varied and unique challenges and the actions undertaken to combat these will determine the continued viability of their business. In the coming months, various M&A practices are expected to emerge based on market demand and the extent of the pandemic's impact on each sector and jurisdiction. As there is no rule book for avoiding distressed deals, parties must be creative and flexible.