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ARTICLE · 18 SEPTEMBER 2024

Reverse Flips - Fast Tracked?

Amidst the increasing demand for internalization into India from foreign jurisdictions, on September 09, 2024, the Ministry of Corporate Affairs (the "MCA")...

IndiaCorporate/Commercial Law
  1. A NEW PATH FOR MERGERS WITH FOREIGN COMPANIES

    Amidst the increasing demand for internalization into India from foreign jurisdictions, on September 09, 2024, the Ministry of Corporate Affairs (the “MCA”) introduced an important regulatory change for the amalgamation of foreign holding companies with their wholly owned subsidiary(ies) in India. The Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 (the “Merger Rules”) have been amended to add a new provision, Regulation 25A(5), permitting fast-track mergers involving foreign companies (the “Amendment”).

  2. THE OLD PROCESS: A LENGTHY ROUTE FOR MERGERS INVOLVING FOREIGN COMPANIE

    As a background, Sections 230 to 232 of the Companies Act 2013 (the “Companies Act”) provide for the process for compromises, arrangements, and mergers requiring an approval from the National Company Law Tribunal (the “NCLT”). However, Section 233 offers a simplified, fast-track route for mergers between a holding

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