{"id":23,"date":"2026-03-07T21:21:45","date_gmt":"2026-03-07T15:51:45","guid":{"rendered":"https:\/\/corparmour.com\/blog\/?p=23"},"modified":"2026-03-07T21:21:45","modified_gmt":"2026-03-07T15:51:45","slug":"amendments-to-companies-compromises-arrangements-and-amalgamations-rules-2016-a-win-win-for-corporates-professionals-and-regulators","status":"publish","type":"post","link":"https:\/\/corparmour.com\/blog\/amendments-to-companies-compromises-arrangements-and-amalgamations-rules-2016-a-win-win-for-corporates-professionals-and-regulators\/","title":{"rendered":"Amendments to Companies (Compromises, Arrangements and Amalgamations) Rules, 2016: A Win\u2013Win for Corporates, Professionals and Regulators"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p>In a welcome move, the Central Government has amended the <em>Companies (Compromises, Arrangements and Amalgamations) Rules, 2016<\/em> vide notification dated <strong>4th September 2025<\/strong>. With the implementation of these amendments, after implementation of this rule now we can see mor Black Coat (Advocates) in R.D Offices, Roc Offices and OL offices. However, Blue Coat (Company Secretaries) has also a good opportunity to show our strength in the same places. I opine that there shall be a little bit hurdle that earlier because of small companies, in general we didn\u2019t get objection but the number of objection and question from regulatory will be high. It is also a step to reduce work load from the Hon\u2019ble NCLT.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/corparmour.com\/blog\/wp-content\/uploads\/2026\/03\/Untitled-design-3.png\" alt=\"\" width=\"720\" height=\"480\" class=\"size-full wp-image-24 aligncenter\" srcset=\"https:\/\/corparmour.com\/blog\/wp-content\/uploads\/2026\/03\/Untitled-design-3.png 720w, https:\/\/corparmour.com\/blog\/wp-content\/uploads\/2026\/03\/Untitled-design-3-300x200.png 300w, https:\/\/corparmour.com\/blog\/wp-content\/uploads\/2026\/03\/Untitled-design-3-360x240.png 360w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/p>\n<p>Key amendments introduced are as follows:<\/p>\n<ol>\n<li>Eligibility criteria<\/li>\n<li>Certification by the Auditor<\/li>\n<li>Introduction of Form CAA-10A<\/li>\n<li>Inclusion of the term \u201cdivision\u201d to provide clarity on demerger<\/li>\n<li>Prescribed time limit for filing Form RD-1<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corparmour.com\/blog\/amendments-to-companies-compromises-arrangements-and-amalgamations-rules-2016-a-win-win-for-corporates-professionals-and-regulators\/#Eligibility\" title=\"Eligibility\">Eligibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corparmour.com\/blog\/amendments-to-companies-compromises-arrangements-and-amalgamations-rules-2016-a-win-win-for-corporates-professionals-and-regulators\/#Comparative_Table_Earlier_vs_Now\" title=\"Comparative Table: Earlier vs. Now\">Comparative Table: Earlier vs. Now<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Eligibility\"><\/span>Eligibility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Earlier the scheme of merger or amalgamation may be entered between or in to following class of companies:<\/p>\n<p>(i) two or more small companies or<\/p>\n<p>(ii) between a\u00a0holding company\u00a0and its wholly-owned\u00a0subsidiary company\u00a0or<\/p>\n<p>(iii)\u00a0 two or more start-up companies; or<\/p>\n<p>(iv) one or more start-up company with one or more small company<strong><u>.<\/u><\/strong><\/p>\n<p>Now, one or more unlisted company (not being a Section 8 company) with one or more unlisted company (not being company referred to in section 8 of the Act), where every company involved in the merger,<\/p>\n<p>(a) has, in aggregate, outstanding loans, debentures or deposits not exceeding two hundred crore rupees, and<\/p>\n<p>(b) has no default in repayment of loans, debentures or deposits referred to in sub-clause (a)<\/p>\n<p>Here is certification introduced from the auditor by newly inserted form CAA \u2013 10A.<\/p>\n<p>(v) holding company (listed or unlisted) and a subsidiary company (listed or unlisted):<\/p>\n<p>Provided that this clause shall not apply where the transferor company or companies are listed;<\/p>\n<p>(vi) one or more subsidiary company of a holding company with one or more other subsidiary company of the same<\/p>\n<p>holding company where the transferor company or companies are not listed;<\/p>\n<p>(vii) merger of the transferor foreign company incorporated outside India being a holding company with the transferee<\/p>\n<p>Indian company being its wholly owned subsidiary company incorporated in India referred to in sub-rule (5) of rule 25A.<\/p>\n<p>The list of happiness for professional does not end here. Time limit for filing of RD \u2013 1 has been increased to 15 days.<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Comparative_Table_Earlier_vs_Now\"><\/span><strong>Comparative Table: Earlier vs. Now<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here is a side-by-side summarization:<\/p>\n<table>\n<thead>\n<tr>\n<td><strong>Feature<\/strong><\/td>\n<td><strong>Earlier Eligibility<\/strong><\/td>\n<td><strong>New Eligibility &amp; Changes<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Small companies<\/strong><\/td>\n<td>Always eligible: mergers between two or more small companies. Holding-subsidiary (wholly-owned) also.<\/td>\n<td>Retained, but now more categories added beyond that.<\/td>\n<\/tr>\n<tr>\n<td><strong>Startups<\/strong><\/td>\n<td>Yes: merger between start-ups; or startup + small company.<\/td>\n<td>Still eligible. New categories do <em>not<\/em> restrict those.<\/td>\n<\/tr>\n<tr>\n<td><strong>Unlisted companies (other than Section 8)<\/strong><\/td>\n<td>Not generally permitted unless satisfy small or start-up criteria.<\/td>\n<td>Now unlisted companies may merge fast-track if \u2264 \u20b9200 crore debt etc., no default.<\/td>\n<\/tr>\n<tr>\n<td><strong>Holding &amp; subsidiary<\/strong><\/td>\n<td>Only if wholly-owned subsidiary.<\/td>\n<td>Now also where subsidiary may not be wholly owned (but transferor not listed). Broadens intra-group restructuring.<\/td>\n<\/tr>\n<tr>\n<td><strong>Subsidiaries of same holding company<\/strong><\/td>\n<td>Not permitted earlier under fast track (unless fits other categories).<\/td>\n<td>Permitted under new rules (if transferor unlisted).<\/td>\n<\/tr>\n<tr>\n<td><strong>Foreign holding companies<\/strong><\/td>\n<td><\/td>\n<td>Still permitted; now integrated into rules more clearly.<\/td>\n<\/tr>\n<tr>\n<td><strong>Demergers \/ division \/ transfer of undertaking<\/strong><\/td>\n<td>Unclear, not explicitly covered. Some regional director discretion.<\/td>\n<td>Now explicitly included under the fast-track regime.<\/td>\n<\/tr>\n<tr>\n<td><strong>Debt \/ financial thresholds, defaults<\/strong><\/td>\n<td>Not applicable in many earlier categories (small companies etc.). No fixed threshold or auditor certificate required in many cases.<\/td>\n<td>New thresholds (\u20b9200 crore), default condition, auditor certificate (Form CAA-10A).<\/td>\n<\/tr>\n<tr>\n<td><strong>Regulator \/ stock exchange notice \/ objections<\/strong><\/td>\n<td>Notices to ROC, OL, matters of members &amp; creditors; regulator involvement only if relevant but not systematically required.<\/td>\n<td>More systematic: regulated companies need notice to regulator; listed companies to stock exchanges; need to address any objections.<\/td>\n<\/tr>\n<tr>\n<td><strong>Forms \/ procedural detail<\/strong><\/td>\n<td>Standard forms under CAA Rules; earlier those specific ones (CAA-9, CAA-10 etc.).<\/td>\n<td>Revised forms; addition of CAA-10A; more detailed procedural steps including filing timelines etc.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>Conclusion: This amendment can rightly be seen as a win\u2013win situation for all stakeholders. For corporates, it ensures reduced time and cost in completing restructuring processes. For professionals, it widens the scope of practice and enhances opportunities to contribute meaningfully in the evolving regulatory environment. For the regulatory authorities, though the workload may initially appear intensive, the overall framework will streamline processes and deliver long-term benefits.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; In a welcome move, the Central Government has amended the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 vide notification dated 4th September 2025. With the implementation of these amendments, after implementation of this rule now we can see mor Black Coat (Advocates) in R.D Offices, Roc Offices and OL [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":24,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-23","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uncategorized"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Amendments to Companies (Compromises, Arrangements and Amalgamations) Rules, 2016: A Win\u2013Win for Corporates, Professionals and Regulators - Corparmour<\/title>\n<meta name=\"description\" content=\"welcome to you Manmachine Automotive\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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