REC Limited has announced the receipt of No Objection Letters from the National Stock Exchange of India Limited (NSE) and the BSE Limited (BSE). These letters are crucial for the proposed scheme of merger between REC Limited and Power Finance Corporation Limited (PFC). The approvals pave the way for the scheme to proceed, subject to further statutory and regulatory approvals, and shareholder consent.
Key Approvals for REC-PFC Merger Secured
REC Limited has taken a significant step forward in its proposed merger with Power Finance Corporation Limited (PFC), announcing the receipt of No Objection Letters from both the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on October 19, 2026. This development is a crucial milestone in the amalgamation process.
Regulatory Milestones Achieved
The letters from the stock exchanges confirm that the draft scheme of arrangement has met the initial regulatory requirements. The NSE’s observation letter, dated October 19, 2026, and BSE’s ‘No adverse observation’ letter, also dated October 19, 2026, indicate that the exchanges have reviewed the proposed scheme. These approvals are essential for REC Limited and PFC to proceed with filing the scheme before the National Company Law Tribunal (NCLT).
Next Steps and Conditions
REC Limited has been advised to ensure compliance with all comments and conditions stipulated by SEBI and the stock exchanges. The scheme remains subject to other statutory and regulatory approvals, including those from the Reserve Bank of India (RBI) and the final approval of the respective shareholders and creditors of both companies. The company has also been instructed to prominently disclose all relevant information to shareholders regarding the merger, including its rationale, benefits, and risks, as part of the explanatory statement.
Source: BSE
