Leading stock exchange BSE has approved the merger of Glenmark Pharmaceuticals' two subsidiaries with the pharma company as the amalgamation does not violate securities law.
The pharma giant received nod for the merger of Glenmark Generics Ltd and Glenmark Access Ltd with itself, which the Glenmark Pharmaceuticals board had approved in January this year.
'No-objection approval' has been granted to the proposal, the BSE said a letter to Glenmark Pharmaceuticals dated May 2.
Besides, the National Stock Exchange had approved the proposed merger last month.
The approval is valid for six months, during which the company will apply to the High Court for further clearance of the proposal.
Glenmark Pharmaceuticals also needs to display on website its shareholding pattern before and after the merger.
The BSE said that it received confirmation from the company saying the scheme does not violate or override provisions of securities laws or stock exchange requirements.
"Accordingly, we do hereby convey our 'no-objection' with limited reference to those matters having a bearing on listing /delisting/ continuous listing requirements within the provisions of the Listing Agreement, so as to enable the company to file the scheme with the High Court," the BSE said.
Companies seeking to implement merger or de-merger strategies are required to obtain a no-objection certificate from the stock exchanges.