The RBI has amended FEMA regulations to replace NCLT references with 'Competent Authority,' broadening the scope of authorities recognized under the law for approving cross-border mergers.
Amendment to FEMA Cross-Border Merger Regulations
The Reserve Bank of India (RBI) has introduced amendments to the FEMA regulations governing cross-border mergers. Notably, references to the National Company Law Tribunal (NCLT) have been replaced with the broader term 'Competent Authority'. This change expands the range of authorities recognized under FEMA to grant approvals for mergers.
This amendment aims to streamline the process for cross-border mergers, aligning FEMA with the provisions outlined in the Companies Act. By allowing approvals from any authority empowered under the Companies Act, the RBI facilitates greater flexibility and efficiency in cross-border transactions.
Legal experts in corporate law and mergers should advise their clients on the implications of this change, as it permits a wider array of authorities to consider merger applications, thus potentially expediting the approval process.
Citations
- RBI Notification (2026)
