Cross-border merger compliance requires sanctioned-scheme compensation and completion of pre-merger foreign-exchange regulatory actions by participating companies.

Regulation 7 governs compensation and pending regulatory compliance in cross-border mergers. The resultant company may pay compensation to holders of securities of the Indian or foreign company in accordance with the scheme sanctioned by the Competent Authority. Companies involved in the merger must ensure completion of regulatory action concerning pre-merger non-compliance, contraventions or violations of foreign-exchange law, rules or regulations. The reference to the Competent Authority replaces the earlier reference to the NCLT.

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