Ministry of Corporate Affairs: Amendment to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016
As per the Notification dated 9th September 2024, issued by the Ministry of Corporate Affairs, the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, the following sub-rule shall be inserted:
“5) Where the transferor foreign company incorporated outside India being a holding company and the transferee Indian company being a wholly owned subsidiary company incorporated in India, enter into merger or amalgamation, –
both the companies shall obtain the prior approval of the Reserve Bank of India;
the transferee Indian company shall comply with the provisions of section 233; (
the application shall be made by the transferee Indian company to the Central Government under section 233 of the Act and provisions of rule 25 shall apply to such application; and
the declaration referred to in sub-rule (4) shall be made at the stage of making application under section 233 of the Act
The amendments shall come into force from 17th September 2024.
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