The Ministry of Corporate Affairs, (MCA), on September 09, 2024, notified the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2024 to further amend the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.
The following has been stated namely: -
•In rule 25A, after sub-rule (4), the “(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, – (i) both the companies shall obtain the prior approval of the Reserve Bank of India; (ii) the transferee Indian company shall comply with the provisions of section 233; (iii) 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 (iv) the declaration referred to in sub-rule (4) shall be made at the stage of making application under section 233 of the Act." sub-rule shall be inserted.
[Notification No. G.S.R. 555 (E)]
