Fast-Track Mergers: MCA Simplifies Processes

Mumbai, Aug 21 (PTI) The Corporate Affairs Ministry is working on widening the scope for fast-track mergers besides working with market regulator Sebi on harmonisation of requirements for transmission of shares, a top official said on Thursday.

These and several other such initiatives are part of the further measures of doing ease of business in the country, the official said.

"We are trying to widen the scope of what all can come under the fast-track merger. And also simplify the process in terms of the requirements that have to be undergone to do a fast-track merger," Ministry of Corporate Affairs (MCA) Secretary Deepti Gaur Mukerjee said at the Ficci annual Capital Markets Conference here.

She said that MCA has got a lot of suggestions and in the next 10-15 days, the final version of the new fast-track merger and acquisition guidelines and rules are expected to be out, she said.


"We are now working with Sebi (Securities & Exchange Board of India) to set up a small task force and I think by September 8 we will have the first draft out where we look at harmonization of requirements for transmission of shares or even for dematerialisation of shares. So that there is a uniform practice across the entire industry," Mukerjee stated.

On the concept of ESG, Mukerjee said one of the key challenges the MCA has in ESG is primarily the quality of disclosures that are being made.

"From our side, companies actually don't write anything. Whatever you have in ESG compliance comes from Sebi. However, the principles are enshrined in the corporate governance guidelines, which we have. So I would request you again to stress that ESG disclosure should be comprehensive and transparent," she said.

"But with SEBI and RBI, we are in discussion for some more provisions which need to be clarified, whether it is in terms of issues with securities or public offers and other such things," Mukerjee added.

Whatever suggestions or recommendations are coming to the MCA either from the industry or from the market regulator, "we are discussing all of it with the view of enhancing your capacity to grow, and that it becomes easy and you get maximum value," she said.