Notification/Circular No.: FEMA 389(1)/2026-RB dated May 29, 2026
Applicable Act/Rule: Foreign Exchange Management Act, 1999 (42 of 1999) read with the Foreign Exchange Management (Cross Border Merger) Regulations, 2018 (Notification No. FEMA.389/2018-RB dated March 20, 2018)
Applicable Section/Rule: Section 47 of the Foreign Exchange Management Act, 1999; Regulations 2, 4, 5, 7, and 9 of the Foreign Exchange Management (Cross Border Merger) Regulations, 2018
Effective Date: June 5, 2026
Reserve Bank of India, in exercise of the powers conferred by Section 47 of the Foreign Exchange Management Act, 1999, has made the following amendments to the Foreign Exchange Management (Cross Border Merger) Regulations, 2018. The principal regulations were published vide G.S.R. No. 244(E) dated March 20, 2018 in Part II, Section 3, Sub-section (i) of the Official Gazette (published on March 23, 2018).
Regulation 2 — Definitions:
(i) Clause (vii) of Regulation 2 has been omitted.
(ii) After clause (ii) of Regulation 2, the following new clause (iia) has been inserted, namely:
“(iia) ‘Competent Authority’ means any authority empowered under the Companies Act, 2013 or any subordinate legislation made thereunder to approve a scheme of merger or amalgamation;”
Regulations 4, 5, 7, and 9 — Substitution of “NCLT” with “Competent Authority”:
In Regulations 4, 5, 7, and 9 of the principal regulations, the word “NCLT”, wherever it occurs, has been substituted with the words “Competent Authority”.
The amendment impacts all persons and entities undertaking or involved in cross border mergers governed by the Foreign Exchange Management (Cross Border Merger) Regulations, 2018.
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