Explain Inbound and Outbound merger as defined in the Foreign Exchange Management (Cross Border Merger) Regulations, 2018.

Inbound and outbound merger as defined in the Foreign Exchange Management (Cross Border Merger) Regulations, 2018 are explained hereunder: Inbound Merger An inbound merger is one where a foreign company merges with an Indian company (or domestic company) resulting in an Indian company being formed. Following are the key aspects which need to be followed during an inbound merger: The resultant company post cross-border merger can transfer any security including a foreign security to a person resident outside India. An office/ branch outside India of the foreign company shall be deemed to be the resultant company's office outside India. The borrowings of the transferor company would become the borrowings of the resulting company. Assets acquired by the resulting company can be transferred in accordance with the provisions of the Companies Act, 2013 or any regulations framed thereunder for this purpose. The resultant company is allowed to open a bank account in foreign currency in the overseas jurisdiction. Outbound Merger An outbound merger is one where an Indian company (or domestic company) merges with a foreign company resulting in a foreign company being formed. The following are the key aspects governing an outbound merger: The securities issued by a foreign company to the Indian company, may be issued to both, persons resident in and outside India. An office of the Indian company in India may be treated as the branch office of the resultant company in India. The borrowings of the resultant company shall be repaid in accordance with the sanctioned scheme. Assets which cannot be acquired or held by the resultant company should be sold within a period of two years. The resultant company can now open a Special Non-Resident Rupee Account.