The Ministry of Corporate Affairs (MCA) has widened the scope of fast-track mergers under the Companies Act, 2013, allowing more categories of companies to benefit from the simplified merger and demerger process. The move is expected to speed up corporate restructuring, reduce litigation bottlenecks, and provide a more predictable framework for domestic and foreign investors.
In a notification dated 4th September 2025 (G.S.R. 603(E)), MCA amended the Companies (Compromises, Arrangements and Amalgamations) Rules, expanding eligibility for fast-track mergers under Section 233. Earlier, this route was restricted to mergers between two or more small companies or between a holding company and its wholly-owned subsidiary. The new rules empower the Government to notify additional categories of companies eligible to use this mechanism, bringing greater flexibility to the corporate reorganization process.
Also Read: Jharkhand will Finalize New Land Allotment Policy and MSME Directorate to Spur Investments
Part of Budget 2025-26 Reform Agenda
Officials said the move follows the announcement in paragraph 101 of the Union Budget 2025-26, which called for further widening of the fast-track merger framework to encourage ease of doing business. By removing procedural hurdles, the Government hopes to accelerate genuine corporate consolidation, free up tribunal capacity for complex cases, and encourage investment flows into sectors undergoing consolidation.
Legal experts view this as a significant reform step that will make M&A activity more efficient and cost-effective. By cutting down on approval timelines and compliance burden, the amended framework is expected to benefit small and medium enterprises, startups, and conglomerates looking to simplify group structures. The notification and detailed guidelines are available on the MCA website for public reference.
Also Read: Parliament Cleared Mines and Minerals (Development and Regulation) Amendment Bill 2025
Join the WhatsApp Group of Business Jharkhand to Stay tuned for all the latest updates of industrial-political developments in Jharkhand.
