The Ministry of Corporate Affairs (MCA) has significantly broadened the scope of the fast-track merger (FTM) process through Notification No. G.S.R. 603(E) dated 4th September 2025. The amendments now allow a wider range of companies—including low-debt unlisted entities, certain subsidiaries, and even foreign holding companies with Indian wholly owned subsidiaries—to leverage the simplified merger and demerger route.
Notable updates include the explicit inclusion of demergers and reverse-flip mergers, streamlined procedural requirements, and mandatory notices to sectoral regulators for regulated companies. These changes aim to simplify and accelerate corporate restructuring, particularly for SMEs, start-ups, and group companies, making mergers and demergers faster, more efficient, and more accessible than ever before.
