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

Under section 234(2), a foreign company wishes to merge into Bharat Components Ltd, an Indian company. Subject to other laws, what prior approval is specifically required by that sub-section?

Section 234(2) requires the prior approval of the Reserve Bank of India for a foreign company to merge into an Indian company or the reverse. Approvals from SEBI, CCI or the Registrar may arise under other laws but are not the approval specified here.

  1. APrior approval of the Securities and Exchange Board of India
  2. BPrior approval of the Competition Commission of India
  3. CPrior approval of the Reserve Bank of IndiaCorrect
  4. DPrior approval of the Registrar of Companies

Explanation

Section 234(2) provides that a foreign company may, with the prior approval of the Reserve Bank of India, merge into an Indian-registered company or vice versa. SEBI, CCI or ROC approvals may arise under other laws but are not what this sub-section requires.

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