Power lenders merger gets RBI clearance
REC Limited received RBI’s NOC for its proposed merger with Power Finance Corporation on 15 Oct 2026, subject to conditions and further approvals. PFC closed at ₹342.30, while futures showed a 1.5% rise in open interest with short build-up.
pre-market3 sources ↓machine-written, see hownot a recommendation
- PFC close
- ₹342.30
- On the day
- -0.64%
- Futures OI, short build-up
- +1.5%
- Put-call ratio
- 0.82
- Max pain
- ₹340.00
REC Limited received a No Objection Certificate from the Reserve Bank of India on 15 Oct 2026 for its proposed merger with Power Finance Corporation Limited. The clearance advances the consolidation of two government-owned power-sector lenders, but the scheme is not yet effective and remains subject to further approvals and conditions.
The RBI approval is subject to instructions and conditions specified by the regulator. The merger scheme, under Sections 230-232 and other applicable provisions of the Companies Act, 2013, still requires the relevant statutory and regulatory clearances, along with approvals from shareholders and creditors of the companies. The boards of both lenders had approved the scheme on 28 Jun 2026.
RBI clearance reduces one regulatory hurdle for the transaction and keeps the focus on the remaining approval process. A completed amalgamation would bring the two major state-owned power financiers under a single corporate structure, with implications for the financing of generation, transmission and distribution projects ⚡. The immediate market effect is therefore likely to remain tied to the pace and terms of the next approvals rather than the RBI NOC alone.
OI Charts data showed Power Finance Corporation closing at ₹342.30 on 15 Oct, down 0.6% for the session, with traded volume of 7,033,911 shares. The stock had gained 5.8% over five sessions but remained down 1.1% over 20 sessions. Its 52-week range was ₹313.35 to ₹486.50, with the low recorded on 1 Oct 2026 and the high on 28 Apr 2026.
In derivatives, futures open interest rose 1.5% to 111,094,100 shares, indicating a short build-up as the price declined. The futures contract expiring on 27 Oct carried a 0.63% premium to the underlying. The put-call ratio was 0.82, while maximum pain stood at ₹340. The largest call open interest was at ₹350 and the largest put open interest at ₹330. These levels frame the near-term derivatives positioning around the stock’s latest close.
The next developments to watch are the companies’ filings on the remaining statutory process, shareholder and creditor approvals, and any disclosure on the effective date or merger terms. The RBI clearance advances the process, but it does not by itself complete the amalgamation 💼.
Source: Power Peak Digest, 15 Oct 2026
Not investment advice. For informational purposes only.