Many developing countries such as India are entering a path of change, which provides the potential for attaining sustained industrial and economic growth, and the opportunities and challenges which this has put forward. ‘India after adopting the policy of liberalization and deregulation in 1991, has been striving hard for global excellence, better performance and to achieve a sustained growth at the rate of 7-8 per cent per annum. Many efforts like opening of more and more sectors for private sector, removing of import restrictions, making rupee fully convertible, allowing MNCs to enter Indian economy and complete participation in Indian capital market have been undertaken. Opening up of more sectors for private sector and MNCs, has been with the major objective of increasing competition between public and private sector undertakings which will have far reaching impacts in terms of quality production, lowering per unit cost, improving export and better services to consumers in India and abroad.1 Making PSUs viable and competitive several steps have been initiated. Clearly, many forms of business and financial restructuring activities are covered above. These activities have stirred much controversy. Are they good or bad for the economic health of the nation? Do they divert the energies of managers from bonfire economic activity to financial manipulation? Do they use up financial resources which otherwise would be employed in “real” investment activities? Why has such heightened restructuring activities been phenomenon of a last 20 years?3 All these questions are important to be understood before the talk about restructuring of corporates