Key Points
India on Tuesday revamped the rules governing approval for mergers and acquisitions (M&As) in the startup space to make the process faster and simpler...
M&As in startup and MSME sectors will now be able to secure approval within 15 days that can go up to a maximum of 60 days, a corporate affairs ministry (MCA) notification said...
The move is seen as a big boost for the startup sector that has seen a rise in corporate restructuring in recent times...
As per the notification, if the MCA doesn't receive any objection from the Registrar of Companies (RoC) and official liquidators within 30 days and if it's in the interest of public or creditors of the companies, the ministry can confirm a merger or amalgamation within 15 days...
Moreover, where the objections of the RoC and the official liquidators are found to be unsustainable and the government considers the merger or amalgamation to be in public interest, it may issue a confirmation order regarding the merger or amalgamation within 60 days...
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