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CS Professional · Corporate Restructuring, Valuation and Insolvency · Cross Border Mergers

Mahi Foods Pvt Ltd, an Indian company, is to be merged with a foreign company under Section 234. In the Central Government's rule-making power on such mergers, which statement is correct?

Rules may be made in consultation with the Reserve Bank of India. The proviso to Section 234(1) empowers the Central Government to make rules on cross-border mergers and amalgamations after consulting the RBI.

  1. ARules may be made in consultation with the Reserve Bank of IndiaCorrect
  2. BRules may be made in consultation with SEBI
  3. CRules may be made in consultation with the National Company Law Tribunal
  4. DRules may be made without any consultation

Explanation

The proviso to Section 234(1) states that the Central Government may make rules, in consultation with the Reserve Bank of India, in connection with mergers and amalgamations under this section.

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