The number of mergers and acquisitions has boomed in India since liberalisation, but few hostile takeovers have succeeded, primarily because of the concentration of promoter shareholding in companies and because takeover regulations favour promoters. Hostile takeovers would facilitate M&A growth, and the success of hostile takeovers is essential to facilitate corporate competence and foster capital market development. To be effective, the anti-takeover mechanisms in India should be practised as a protectionist measure and the takeover regulations must adopt a lenient approach towards hostile takeovers, as in the United States.