Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2025 - Wider Access to Fast-Track Mergers

Ministry of Corporate Affairs (MCA) vide its notification dated September 04, 2025 has amended Companies (Compromises, Arrangements and Amalgamations) Rules, 2016. These amendments, the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2025, shall come into force on September 08, 2025. 

The amendment brought new compliance procedures and expanded the fast-track route for mergers, making the processes clearer, quicker, and more transparent for companies and stakeholders.

Eligibility for fast-track mergers expanded-

The Amendment has broadened to include the following additional classes of arrangements:

• two or more unlisted companies (other than Section 8 company) (having outstanding loans, debentures or deposits not exceeding two hundred crore rupees and no default in repayment)
• Holding and subsidiary companies (except where the transferor is listed)
• Subsidiaries of the same holding company (if not listed)
• Foreign holding companies merging with their wholly-owned Indian subsidiaries

Application to demerger-

A new Sub-Rule 9 has been inserted. The fast-track provisions have now been expressly extended to cover schemes of division or transfer of undertakings  under Section 232(1)(b) of the Act.

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