The Reserve Bank of India has amended the foreign exchange framework for cross border mergers by replacing references to NCLT in the 2018 regulations with a broader concept of “Competent Authority”. The change means the approval point in the regulations now refers to any authority empowered under the Companies Act, 2013 or subordinate legislation to approve a merger or amalgamation scheme. The amendment inserts a definition of “Competent Authority” into regulation 2, omits clause (vii) of that regulation, and substitutes “Competent Authority” for “NCLT” wherever it appears in regulations 4, 5, 7 and 9. The revised rules take effect from the date of publication in the Official Gazette.
2026-05-29Reserve Bank of India
Reserve Bank of India replaces NCLT references in cross border merger rules with Competent Authority
The Reserve Bank of India has amended the foreign exchange framework for cross-border mergers by replacing references to the National Company Law Tribunal with a broader “Competent Authority” concept. “Competent Authority” is defined as any authority empowered under the Companies Act, 2013 or subordinate legislation to approve a merger or amalgamation scheme, and this term now applies across key regulations governing such transactions.