The Reserve Bank of India has granted a conditional no-objection certificate for the merger of REC Ltd into Power Finance Corporation (PFC), according to a Corplawupdates report of 16 October 2026. REC disclosed it on 15 October under SEBI's listing regulations, and PFC filed a parallel intimation the same day.
The scheme
REC is the transferor and PFC is the transferee and surviving listed company. The route is a scheme of amalgamation under Sections 230–232 of the Companies Act, 2013, which both boards approved on 28 June 2026. The swap ratio, announced then, is 88 PFC equity shares for every 100 REC equity shares, both of ₹10 face value. The record date has not been announced.
The conditions
The filings say the no-objection is "subject to certain instructions and conditions specified therein". Those conditions are not public, so the approval should not be read as unconditional.
What is still pending
Shareholder approvals and creditor approvals of both companies, other statutory and regulatory approvals, and sanction by the National Company Law Tribunal, after which the order must be filed with the Registrar of Companies. The appointed and effective dates are not disclosed. Press reports put the combined loan book at about ₹11 lakh crore, but the filings do not state this figure.
Borrowers
Existing loan agreements continue on current terms unless the sanctioned scheme changes them.
Key numbers
- Swap ratio: 88 : 100 (PFC shares per REC shares)
- Board approvals: 28 June 2026 (Both companies)
- RBI NOC: 15 Oct 2026 (Conditional)
- Pending: NCLT sanction (Plus shareholders, creditors)
What boards and CFOs should note
Three points stand out. First, the central bank's step is one of several; the scheme is not complete. Second, the swap ratio is fixed at 88 for 100 and is not affected by this approval. Third, borrowers of either company need take no action now, since terms continue unless the scheme changes them.
Source: Corplawupdates, 16 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
