Power Finance Corporation Limited (PFC) has announced receiving ‘No Objection’ letters from both the National Stock Exchange of India (NSE) and BSE Limited for the proposed scheme of merger with REC Limited. This marks a significant step forward in the amalgamation process, bringing the companies closer to seeking approvals from shareholders, creditors, and regulatory bodies like the National Company Law Tribunal (NCLT). The scheme is proceeding as per the applicable provisions of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Key Milestone Achieved for Merger
Power Finance Corporation Limited (PFC) has informed stakeholders that it has received ‘No Objection’ letters from both the National Stock Exchange of India Limited (NSE) and BSE Limited regarding the proposed scheme of amalgamation. This scheme involves the merger of REC Limited (the “Transferor Company”) with and into Power Finance Corporation Limited (the “Transferee Company”). These letters are crucial as they confirm the exchanges’ observations on the draft scheme.
Merger Process Advancing
The announcement, dated October 19, 2026, signifies a critical advancement in the merger process. PFC’s Board and REC’s Board had previously approved the scheme, which is now subject to further statutory, regulatory, and shareholder approvals. The ‘No Objection’ letters from the exchanges facilitate the next steps, including filing the scheme with the Hon’ble National Company Law Tribunal (NCLT).
Regulatory Compliance
The companies have been advised by the exchanges to ensure compliance with various SEBI circulars and regulations, including those related to disclosures, financial information, and pending actions. The observation letters from both NSE and BSE are valid for six months from the date of issuance, within which the scheme must be submitted to the NCLT. The merger is proceeding under Sections 230-232 of the Companies Act, 2013.
Source: BSE
