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India’s New M&A Rule Could Be Bad News for Startups

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India’s New M&A Rule Could Be Bad News for Startups

India has introduced a new anti-trust rule requiring Competition Commission of India approval for deals exceeding 20 billion rupees ($240 million) where the target has substantial business in India. This 'deal value threshold' aims to prevent 'killer acquisitions' and address regulatory gaps, but experts worry it could hinder innovation and startup funding. The rule applies across sectors, potentially increasing regulatory filings by 30%. Critics argue it may discourage venture capital investment and create hurdles for young companies seeking acquisition. India joins the US and EU in tightening scrutiny of tech acquisitions. The move reflects a shift towards preventing anti-competitive behavior preemptively, rather than acting after the fact. While some view it as necessary market evolution, others fear it could increase red tape and regulatory burden on companies.

Comments

Abhay narayan Singh
Abhay narayan Singh

Thats a great initiative on the hindsight i believe every coin has two sides. Lets see. One thing for sure GOI does not have proper economic decision making machine or thinkers in place

1 Reply
1
3 months ago

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