REC Limited has received a No Objection Certificate (NOC) from the Reserve Bank of India (RBI) for its proposed merger with Power Finance Corporation Limited (PFC). Received on October 15, 2026, the NOC is subject to specified conditions. The merger remains subject to other statutory and regulatory clearances, as well as shareholder and creditor approvals wherever required.
REC disclosed the development under Regulation 30 and other applicable provisions of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
REC-PFC Merger Scheme Approved by Both Boards
The development follows the approval granted by the respective boards of directors of REC Limited and PFC on June 28, 2026, for the proposed merger scheme. The boards approved the scheme subject to the receipt of necessary statutory, regulatory and other applicable clearances.
Under the proposed arrangement, REC Limited, the transferor company, will merge with and into Power Finance Corporation Limited, the transferee company. The scheme is being pursued under Sections 230–232 of the Companies Act, 2013, and other applicable legal provisions.
Other Regulatory and Shareholder Approvals Pending
The RBI’s NOC marks a step in the proposed merger process but does not signify completion of the transaction. The certificate remains subject to the central bank’s specified instructions and conditions.
The companies must also secure other applicable statutory and regulatory approvals and fulfil the relevant conditions under the merger scheme. These include approvals from their respective shareholders and creditors wherever required under applicable laws.
The proposed REC-PFC merger will proceed towards completion only after the remaining required approvals and conditions have been fulfilled.
