MCA has amended the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 to provide significant development for cross-border mergers and amalgamations between transferor foreign company incorporated outside India (as a holding entity) and a transferee Indian company (its wholly owned subsidiary).
Both companies are required to obtain prior approval from the Reserve Bank of India (RBI). Additionally, the transferee Indian company must adhere to Section 233 of the Companies Act, 2013, and make the necessary application to the Central Government as per Rule 25. Moreover, a declaration in Form CAA-16 is mandatory at the time of submitting the application under Section 233.