MCA Proposes Expansion Of The Fast Track Merger Framework

The Ministry of Corporate Affairs (the "MCA") has recently issued a public notice inviting comments on the draft Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2025 (the "Draft Amendment Rules"). The Draft Amendment Rules aim to widen the scope of fast-track mergers under Section 233 of the Companies Act, 2013 (the "CA Act") to increase corporate restructuring efficiency. This move follows the announcement made in the Union Budget 2025–26 to simplify and expand the process of fast-track mergers to more classes of companies.

Background

Largely from a tax perspective, mergers are a common tool for corporate restructuring; however, the National Company Law Tribunal (the "NCLT") often takes 9 (nine) to 12 (twelve) months or even longer to approve merger schemes.