India: The Ministry of Corporate Affairs (“MCA”) has notified the provisions of Section 234 of the Companies

The Ministry of Corporate Affairs (“MCA”) on 13 April 2017 has notified the provisions of Section 234 of the Companies Act 2013 (“the Act”) and respective rules, allowing the cross-border merger of a foreign company with Indian Company. As a result, Foreign Company can now carry out an inbound merger with an Indian company and an Indian company can enter an outbound merger with a foreign company incorporated in ‘notified jurisdictions’ subject to the prior approval of Reserve Bank of India (“RBI”).

The said provision enable the exchange of foreign technology (original in foreign companies) with shares in Indian companies and such exchange generates tax benefits and therefore eases the collaboration between Israeli and Indian companies.