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A fresh set of regulations has been proposed by the Reserve Bank regarding mergers and acquisitions that seek reporting of such actions to be more stringent and time-bound, and provide for mandatory permission for all deals that are not on the automatic route.
This follows the new regulations that has been notified by Corporate Affairs Ministry under the Companies (Compromises, Arrangements and Amalgamation) Amendment Rules of 2017 issued on April 13.
The proposed regulations are going to be bought in under the FEMA rules of 1999 and seek to address the issues that may arise when a domestic firm and a foreign firm enter into scheme of merger, demerger/amalgamation/rearrangement.
