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NCLT could lose power to approve mergers and acquisitions in reform move
November, 29th 2018

The government is considering taking away the power of the National Company Law Tribunal (NCLT) to approve or reject mergers and acquisitions (M&A) and give the responsibility to the regional directors of the Ministry of Corporate Affairs (MCA). The proposal is aimed at easing the burden on NCLT benches and ensuring that they only hear cases related to the Companies Act and the Insolvency and Bankruptcy Code.

An approval from the NCLT under the Companies Act is one of the several regulatory clearances required for any merger or acquisition. Some of the other approvals required are ...

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