Corporate India has been changing its composition and structure through mergers and acquisitions, divestitures, etc. in the post liberalization environment. Examples of other countries indicate that it is the pace and extent of firm level or enterprise level restructuring that determines the speed, scope and depth of the revamping of competitive structure at the industry and economy levels. Corporate Restructuring is a broad term that includes within itself various processes of reorientation or realignment of the investment and financing liabilities of a company. Merger activities in the world reflects a powerful change force in the world economy. In fact this respond to the changes, which took place due to high level of technology changes, reduction in cost of communication and transportation that created international market, increased competition, emergence of new industries; favorable economic and financial environment and deregulation of most of the economies also motivate Mergers. Merger policies of companies are to be guided by the larger interests of public policy. Mergers consolidate the ownership and control of business assets, including physical assets (e.g. plant) and intangibles (e.g. brand reputation). They can enhance corporate − and wider economic − performance by improving the efficiency with which business assets are used. Merger policies of companies are a part of competition policy existing in the market and therefore has to be regulated and controlled through regulatory measures. India has seen and continues to see its share of mergers and amalgamations.¹ The opening up of the economy started with the statement on industrial policy made on June 24, 1991 by the government with the dismantling of the regulatory mechanism over the industries and thus it paved the future of corporate restructuring in India.²