The Government of India has made some changes in the rules to help the MSME and startup sector. The rules that have been changed are related to mergers and acquisitions. After this, it will take less time for MSMEs and startups to get approval for such deals. The changed rules are going to come into effect from June 15.
It will take maximum time
The Ministry of Corporate Affairs informed about the change in a notification on Tuesday. According to the notification, to make the process of merger and acquisition easy and simple, the rules related to their approval have been changed. Now MSMEs and startups can get approval for merger and acquisition deals in 15 days. Whereas approval can take a maximum of 60 days.
Change will benefit here
Time taken for approval of merger and acquisition deals for MSMEs and startups This step to reduce the tax is being considered as a big step in the direction of ease of doing business. During the last few years, there has been a spurt in mergers and acquisitions deals in the case of startups and MSMEs. If these deals take less time to get approval, then such deals can be completed faster.
Automatic approval in these cases
The Ministry of Corporate Affairs said It is that the proposals for merger or acquisition will have to be approved either within a maximum of 60 days, or if there is any objection to the proposal, it will have to be placed before the concerned authority. If neither of the two is done, then the transaction will be automatically approved, ie it will be assumed that the proposal has been approved.
No deadline as of now
The notification states that if the Registrar of Companies and Official Liquidators do not object within 30 days, then the deals can be approved in 15 days. On the other hand, if the proposal for merger or acquisition is in the interest of the common people or the creditors of the company, then it can be approved within 15 days of receiving the proposal. As of now, there is no fixed timeline for approving proposals for mergers and acquisitions.