MCA may expand powers of regional directors for M&As of higher categories

Listed companies are, however, likely to be left out of the purview of regional directors along with unlisted public companies above a certain threshold

The Ministry of Corporate Affairs is considering a proposal to expand the powers of regional directors to do mergers and acquisitions (M&As) of higher categories to bring down the burden on the National Company Law Tribunals (NCLTs), a senior government official told Business Standard.

“We are trying to demystify and make it easier to do business,” said a senior government official.

Regional directors are authorised to approve M&As for small companies and those between a parent and a subsidiary company under Section 233 of the Companies Act. All other such transactions require the approval of the NCLTs, which are heavily