Outreach Programme & Panel Discussion

Topic: Global Deals, Local Rules: Navigating Cross-Border M&A and FEMA in the Indian Business Context
Date: 6th August 2025 | Venue: Novotel, Ahmedabad, Gujarat
Organised by: The Council of EU Chambers of Commerce in India

Glimpse & Introduction

Following the outreach programme, the Panel Discussion commenced on the topic “Global Deals, Local Rules: Navigating Cross-Border M&A and FEMA in the Indian Business Context.” The session was moderated by Mr. Robin Banerjee, Senior Vice President, EU Chambers and Chairman, Nucleon Research Pvt. Ltd., who welcomed the distinguished panelists and audience.

Panel Members:

  • Mr. K. Bharathy – Managing Director & CEO, Windar Renewable Energy Pvt. Ltd.
  • Mr. Praveen Kamat – General Manager, IFSCA; Chief Information Security Officer & Head – Cyber Security Division
  • Mr. Nirav Sheth – Co-Chairman, Consultancy & Services Committee, EU Chambers; Founder, iCasperCapFin Advisors LLP
  • Mr. Sonal Sinha – National Head, Structured Solutions, IDFC First Bank
  • Mr. Dharm Veer Singh Krishnawat – Partner & Head of Advisory, Forvis Mazars India
  • Mr. Santosh Bohra – Head, Ahmedabad Office, Roedl & Partner

 

The discussion covered regulatory frameworks, compliance challenges, financing mechanisms, strategic considerations, and sector-specific opportunities for cross-border M&A transactions, with a particular emphasis on FEMA guidelines and practical business experiences.

Speaker-wise Q&A and Discussion Points

Moderator (Mr. Robin Banerjee) – Opening Remarks

  • Set the context by highlighting the growing relevance of cross-border mergers and acquisitions in India’s economic landscape.
  • Emphasised the need to understand FEMA regulations thoroughly, as compliance failures can lead to delays, penalties, or deal cancellations.
  • Invited each panelist to share insights from their sectoral experience.

Q1: What are the current trends and regulatory challenges in cross-border M&A involving India?

Mr. K. Bharathy:

  • Shared the renewable energy sector perspective, noting that foreign investors are increasingly looking at India due to policy support and large market size.
  • Highlighted the role of clear contractual frameworks and early due diligence to avoid regulatory surprises.
  • Stressed the importance of engaging local legal and compliance teams early in the process.

Mr. Praveen Kamat:

  • Outlined how IFSCA (International Financial Services Centres Authority) is facilitating smoother cross-border transactions by creating enabling policies.
  • Mentioned that entities in GIFT City can benefit from reduced compliance overhead for certain global deals.

Mr. Nirav Sheth:

  • Pointed out that valuation differences between Indian and foreign stakeholders often slow down negotiations.
  • Recommended early alignment on transaction structures to comply with FEMA’s pricing guidelines.

Mr. Dharm Veer Singh Krishnawat:

  • Shared examples where delays in regulatory filings under FEMA impacted transaction timelines.
  • Emphasised that compliance should be built into the deal execution strategy, not treated as an afterthought.

Mr. Santosh Bohra:

  • Added that for European investors, clarity on India’s evolving policy landscape is essential, and advisors play a key role in translating local rules into actionable guidance.

Q2: How can companies finance cross-border acquisitions effectively under FEMA?

Mr. Sonal Sinha:

  • Explained structured financing options available through IDFC First Bank, tailored to cross-border transactions.
  • Stated that FEMA compliance must be embedded into financing structures from day one to avoid last-minute roadblocks.

Mr. Nirav Sheth:

  • Suggested the use of hybrid funding models combining debt and equity to optimise tax and compliance outcomes.

Mr. Dharm Veer Singh Krishnawat:

  • Cautioned that funding from overseas sources must strictly adhere to sectoral caps and end-use restrictions under FEMA.

Q3: What are the common mistakes companies make in cross-border M&A?

Mr. K. Bharathy:

  • Rushing into signing without fully understanding cultural and operational differences between entities.
  • Underestimating integration challenges post-acquisition.

Mr. Santosh Bohra:

  • Failing to align timelines for regulatory approvals in both jurisdictions.
  • Not factoring in foreign anti-trust and competition law compliance.

Mr. Praveen Kamat:

  • Neglecting cyber security due diligence, which is critical in digital-heavy businesses.

Q4: Practical advice for SMEs entering cross-border deals

Mr. Nirav Sheth:

  • SMEs should leverage chambers, trade bodies, and government programmes for credible introductions and market intelligence.
  • Suggested using professional networks to build trust with foreign partners before committing funds.

Mr. Sonal Sinha:

  • Encouraged SMEs to explore export financing products that can support initial overseas expansion efforts.

 

 

Closing Remarks:

The closing remarks were delivered by Dr. Renu Shome, who expressed gratitude to IDFC First Bank for being the main sponsor, Madhav Plastomech Pvt. Ltd. as the new life member, and Mr. Nirav Sheth, Co-Chair of the Consultancy & Services Committee, for their valuable contributions to the event. She reaffirmed the Chamber’s commitment to sustained engagement with members and stakeholders in the region and shared plans to revisit Ahmedabad for future initiatives, further strengthening EU–India business and cultural ties.

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