MCA notifies changes concerning mergers and
acquisitions
The Ministry of Corporate Affairs (MCA) recently introduced
changes concerning mergers and acquisitions transactions. The gist
of the changes are summarized below:
1. MCA amends the Companies (Compromises, Arrangements
and Amalgamations) Rules, 2016 (Merger Rules)
MCA has issued the Companies (Compromises, Arrangements, and
Amalgamations) Rules, 2024 (Rules), amending Rule 25A of the
existing Merger Rules. These amendments will take effect from 17
September 2024. The key highlights of the Rules are as follows:
- The Rules regulate mergers between a holding company situated
outside India and its wholly owned subsidiary in India (Indian
WOS), wherein the holding company shall be the transferor company
and the Indian WOS transferee company.
