Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Tally On Cloud Tally on Cloud: Ready for the Daily Backup Requirement
Keep your Tally books accessible from anywhere while supporting your Rule 46(8) obligations. With daily backups configured on servers physically located in India, Tally on Cloud helps you maintain the backup arrangement required for electronic books of account under the Income-tax Rules, 2026. Move your Tally to the cloud with confidence.
Open DEMAT Account with in 24 Hrs and start investing now!
« Latest Circulars »
Open DEMAT Account in 24 hrs
 Supersession of Board of Directors of Abhyudaya Co-operative Bank Ltd., Mumbai - Extension of period
 CORRIGENDUM TO TRADE NOTICE NO. 06/2026-CENTRAL TAX-Territorial re-organization of Divisions and Ranges within the jurisdiction of CGST & CX, Ahmedabad South Commissionerate
 FORM OF DECLARATION UNDER SUB SECTION (1) OF SECTION 214 OF THE FINANCE ACT, 2016 (28 OF 2016), IN RESPECT OF INDIRECT TAX DISPUTE RESOLUTION SCHEME, 2016
 MINISTRY OF FINANCEDEPARTMENT OF REVENUE NOTIFICATIONNo. [02/2026]1 – Central Tax
 NOTIFICATIONNo. 03/2026–Central Tax CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
 Notification No. 04/2026– Central Tax Central Board of Indirect Taxes and Customs
 Central Board of Indirect Taxes and CustomsNotification No. 05/2026–Central Tax
 Seeks to amend notification No. 5/2017- Central Tax dated 19th June, 2017
 Seeks to amend notification No. 5/2017- Central Tax dated 19th June, 2017
 Seeks to amend notification No. 5/2017- Central Tax dated 19th June, 2017
 TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION

Reliance Power wont challenge Sebi regulation on mergers and amalgamations
November, 21st 2013

Reliance Power has decided not to challenge the applicability of the market watchdog Securities and Exchange Board of India's circulars relating to mergers and amalgamations, which affected its proposed restructuring with Reliance Clean Power, a wholly-owned subsidiary.

Earlier, Reliance Clean Power had proposed to be merged with parent company and had approached the court against Sebi's stand. The capital market regulator had declared that its permission was mandatory before any merger or demerger of subsidiaries was proposed with listed entities. Later, Reliance Power filed a plea against Sebi over restructuring process with Reliance Clean Power.

Billionaire Anil Ambani's Reliance Power had taken the view that company doesn't need approval from market regulator to merge its unlisted company with itself. However, Sebi had said that it will examine company's scheme before it goes through.

While filing the scheme for amalgamation in the Bombay High Court, Reliance Power argued that company has not issued any fresh shares, but this scheme is merely for transfer of wholly-owned subsidiary within; hence, there is no need for market regulator's nod for the merger.

"The high court has not ruled on this point because, as stated in the order, Reliance Clean Power decided not to pursue this line of challenge," said Srishti Jha, partner, Desai & Diwanji. "The order expressly states that the interpretation point is kept open for adjudication in future cases. Therefore, while the position of the regulators is not so difficult to read, till Sebi issues a formal circular or the courts issue a definitive verdict on the point, the interpretation may remain open to challenge."

Many large Indian conglomerates and Indian subsidiaries of MNCs, especially in sectors such as infrastructure, retail, manufacturing and pharmaceuticals, were watching the case closely as companies often restructure subsidiaries to gain better operation efficiencies. An email and phone query to Reliance Power did not fetch any results.

"Industry practice suggests that any scheme of amalgamation involving a listed company must be approved by the Sebi pursuant to the February circular," says Neerav Merchant, senior partner, Majmudar & Partners. "This procedure has been followed even in the merger of Ambuja Cements (a listed company) with Holcim India (an unlisted company), to acquire a stake in ACC."

"For minority shareholders, especially private equity investors and FIIs who have small shareholding in companies, this means that such shareholders can have a meaningful say in the manner in which such schemes of arrangements are carried out," says Simone Reis, cohead, M&A, Nishith Desai & Associates.

"There have been mixed views arising out of the Sebi M&A Circulars. One particular criticism is that the circulars do not differentiate between different kinds of schemes of arrangements. For instance, schemes of amalgamation between a parent and its long-term whollyowned subsidiary may not require such scrutiny as the interests of the minority shareholders remain unaffected. This may result in unnecessary procedural compliances and delays."

The Sebi came out with the circular in February and May 2013 relating to amalgamations.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2026 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting