Now, a Foreign Company can merge with an Indian Company with
prior Approval from RBI.
MCA on 14 April 2017 notified
Section 234 of Companies Act, 2013 and issued rules thereunder, thereby opening
the gates for merger and amalgamation of a foreign company with an Indian
company and vice versa.
The newly inserted Rule 25A
states that
1. Prior Approval from RBI is mandatory
for a foreign company, incorporated outside India to merge with an Indian
company by complying the provisions under Sec 230 - 232 of Companies Act, 2013
and rules made thereunder;
2. An Indian company may merge
with a foreign company incorporated under following jurisdictions after
obtaining prior approval of RBI and complying with the provisions of Sec 230 -
232 of Companies Act, 2013 and rules made thereunder:
3. After getting approval from
RBI for such merger, such company has to make an application to NCLT.
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