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.
Reserve Bank of India2026-05-29
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.