Streamlined Path: New Fast Track Merger Rules Under Companies Act
The government has expanded fast track merger rules under the Companies Act, 2013, facilitating easier corporate restructurings. This update targets unlisted entities, easing amalgamations and demergers without lengthy tribunal processes. Introduced by the Ministry of Corporate Affairs, the changes cater to internal reorganisations, following the Union Budget 2025-26 measures.
- Country:
- India
The government has introduced new rules under the Companies Act, 2013, to broaden the scope of fast track mergers, simplifying the process for more categories of companies, as stated in an official release on Thursday.
This regulatory update will enable quicker corporate restructuring, specifically benefiting unlisted companies and conglomerates focused on internal reorganisation, by eliminating the need for extended tribunal approvals.
The Ministry of Corporate Affairs announced amendments to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, effective from September 4, 2025, after consultations with stakeholders. These changes are part of the Union Budget 2025-26's initiative to facilitate smoother business operations and reduce approval delays.
(With inputs from agencies.)
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