Prior approval of Jurisdictional National Company Law Tribunal must for issuance of shares on Mergers/Demergers of Companies with Foreign Direct Investment

The Department for Promotion of Industry and Internal Trade (‘DPIIT’), Ministry of Commerce and Industry has released Standard Operating Procedures (‘SOP’s) – Ref No 1/8/2016 dated 9 November, 2020, as per which approval of the National Company Law Tribunal (‘NCLT’) will be required for Companies who are seeking approval of the Government of India (‘GOI’) for issuance of shares to Non-Residents pursuant to Mergers/Demergers.