NCLT1 min read
Demerger
A corporate restructuring under Sections 230-232 of Companies Act 2013 where a company transfers one or more business undertakings to a newly formed or existing company, in exchange for shares of the resulting company issued to shareholders.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Demerger in Indian corporate law?▼
A corporate restructuring under Sections 230-232 of Companies Act 2013 where a company transfers one or more business undertakings to a newly formed or existing company, in exchange for shares of the resulting company issued to shareholders.
Q2. Why is Demerger important for compliance?▼
Demerger is adjudicated by the National Company Law Tribunal under the Companies Act, 2013 or IBC. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Demerger?▼
Demerger is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with NCLT regulatory matters in India.
Contextual Analysis & Regulatory Updates🔗
Read our latest analysis and critical updates on corporate circulars related to NCLT: