MCA proposes wider scope for fast track M&As under present rules

MCA has proposed that unlisted cos which have reasonable debt exposure of less than Rs 50 cr and have not defaulted on repayment can go through the fast track mechanism under Sec 233 of Companies Act

The Ministry of Corporate Affairs’ (MCA’s) proposal to widen the scope of the present rules of mergers and amalgamations to include more unlisted companies and subsidiaries of companies that are not wholly owned under the fast-track mechanism will reduce the compliance burden and boost agility of start-ups and micro-, small- and medium-enterprises (MSMEs), according to experts.

 

“By bringing unlisted subsidiaries, fellow subsidiaries, and low debt companies into the ambit of quick approvals, the government is clearly addressing industry demands for ease of doing business, post-pandemic corporate restructuring, and group-level consolidations,” said Sonam Chandwani, managing partner, KS Legal & Associates.

 

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