MCA Invites Stakeholder Suggestions to Simplify Fast Track Mergers

In a progressive move aimed at strengthening India’s corporate governance ecosystem, the Ministry of Corporate Affairs (MCA) has proposed amendments to streamline and widen the scope of Fast Track Mergers under Section 233 of the Companies Act, 2013.

This section, currently applicable to mergers between certain classes of companies (such as small companies, holding-subsidiary mergers, and startups), allows a simplified merger process that does not require approval from the National Company Law Tribunal (NCLT). Instead, the Central Government—delegated to the Regional Directors—grants the necessary approvals.

In line with Paragraph 101 of the Union Budget Speech (2025–26), which emphasized regulatory simplification for businesses, the MCA has now placed a draft notification along with an Explanatory Note on its official website, proposing changes to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016.

What’s New?

The draft aims to expand the applicability of the Fast Track Merger route to a broader spectrum of companies, thus enabling quicker, cost-effective consolidation without going through the more time-consuming NCLT process. This move is expected to benefit MSMEs, group entities, and companies undergoing internal restructuring.

Stakeholder Engagement Invited

In keeping with its commitment to transparency and participative governance, the MCA has invited public comments and suggestions on the proposed amendments. Stakeholders can submit their feedback through the e-Consultation module on the MCA portal (www.mca.gov.in) by 05th May, 2025.

Infosential LLP’s Perspective

At Infosential LLP, we welcome this consultative approach by the MCA and believe this amendment has the potential to greatly reduce compliance burden, expedite restructuring, and provide a boost to ease of doing business in India.

We encourage our clients and fellow professionals to review the draft and contribute their insights to help shape a more agile and efficient regulatory framework.

For any assistance in reviewing the draft rules or drafting your suggestions, feel free to reach out to our team at Infosential LLP.