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Informist, Friday, Jun. 5, 2026

 

NEW DELHI – The Reserve Bank of India has made changes in the Foreign Exchange Management (Cross Border Merger) Regulations, 2018 to replace the approval of cross-border mergers from National Company Law Tribunals to competent authority. The central bank has added a clause relating to competent authority in the updated foreign exchange management regulations.

 

According to the changes, competent authority means any authority empowered under the Companies Act, 2013, or any subordinate legislation made thereunder, to approve a scheme of merger or amalgamation. The central bank has said that all references made in the law for the cross-border mergers seeking approval of the tribunal will be replaced by the competent authority. These changes will happen in regulation 4,5,7 and 9.

 

The Companies Act states that prior permission of the Reserve Bank of India is needed for cross-border amalgamation of companies. The terms and conditions of the scheme of merger should provide for the payment of consideration to the shareholders of the merging company in cash or in depository receipts or partly in cash and partly in depository receipts, as the case may be, states the companies law.  End

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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