New Delhi: The proposed merger of REC Limited into Power Finance Corporation (PFC) has cleared another regulatory step, with PFC disclosing to the stock exchanges on October 19, 2026, that it has received no-objection letters from the National Stock Exchange (NSE) and BSE for the scheme of amalgamation, according to the company's Regulation 30 filing.

Under the scheme, approved by the boards of both companies on June 28, 2026, REC (the transferor) will merge with and into PFC (the transferee) under Sections 230–232 of the Companies Act, 2013. REC shareholders will receive 88 fully paid-up PFC shares of Rs 10 each for every 100 REC shares they hold, as per the agreed share exchange ratio. The merger will create a power-sector financing giant with a combined loan book of over Rs 11 lakh crore — yaani, more than Rs 11 trillion of loans on one balance sheet.

The exchange letters follow the Reserve Bank of India's No Objection Certificate, which REC said it received on October 15, 2026, subject to the central bank's conditions, in a separate BSE filing. SEBI's observations, conveyed through letters dated October 9 and October 19, attach conditions including full disclosure of proceedings to the National Company Law Tribunal (NCLT) and shareholders, and that new shares issued under the scheme be in demat form only.

The scheme is not complete yet: it still needs NCLT sanction and the approval of the shareholders and creditors of both companies before it becomes effective. PFC has held a controlling stake in REC since March 2019, when it acquired the Government of India's 52.63 per cent stake for about Rs 14,500 crore, and REC has operated as a PFC subsidiary since then — the merger formally folds the two state-run power financiers into one entity under the Ministry of Power.

(Sources: PFC Regulation 30 disclosure to NSE/BSE, October 19, 2026, reported by Kalkine and ScanX; REC BSE filing on RBI No Objection Certificate, October 15–17, 2026, reported by TradingView News)