Section 232(6) of the Companies Act, 2013 states that the appointed date with respect to a scheme of merger and amalgamation means the date from which the scheme becomes effective. That means the appointed date and effective date of the scheme has to be one and same.  Since there needed some clarity on the subject, the Ministry of Corporate Affairs vide its General Circular dated – 21.08.2019 has issued clarification on the following issues:

  1. Whether it is mandatory to indicate a specific calendar date as ‘appointed date’ in the schemes referred to in the section.
  2. Whether the acquisition date’ for the purpose of Ind-AS 103 (Business combinations) would be the ‘appointed date’ referred to in section 232(6).

We previously looked at the importance of Appointed Date and Effective Date.

Clarification provided by the Ministry

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