1. The Competition Commission of India has further amended the
Competition Commission of India (Procedure in regard to the
transaction of business relating to combinations) Regulations, 2011
2. The changes have been made to Schedule 1 of the Combination
Regulations (being the transactions for which filings need not
normally be made) and are highlighted as follows:
(a) Addition of Para 1(A) - No filing required in case of
acquisitions of additional shares/ voting rights of an enterprise,
not resulting in gross acquisition of more than 5% of the
shares/voting rights in a financial year; where before or after
such acquisition, the acquirer (along with its group) already holds
25% shares/voting rights of such enterprise, but does not hold 50%
Provided that such acquisition does not result in the
acquisition of sole or joint control of such target.
This amendment is along the line of the concept of 'creeping
acquisition' under the Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers) Regulations
The CCI has not given any guidance on the meaning of 'gross
(b) Intra-group acquisitions: Para 8 has been modified to
exclude from the enterprises which are jointly controlled by
enterprises that are not part of the same group.
Now where the target is jointly controlled by enterprises not
belonging to the same group, the transaction will not be able to
avail of the intra-group exemption.
(c) Intra-group mergers: Para 8A has been deleted, and has been
addressed in Para 9 -
No notice is required to be filed in case of merger/amalgamation
of two enterprises where (i) one of the enterprises holds more than
50% shares / voting rights of the other enterprise; and (ii) where
more than 50% shares / voting rights in each of such enterprises
are held by enterprise(s) within the same group.
Provided that the transaction does not result in the transfer
from joint to sole control.
This amendment has been added to presumably lessen compliance
requirements from the earlier requirement of filing in all
mergers/amalgamations except where the two enterprises are
wholly-owned within the same group.
(d) Para 5 and the extant Para 9 have been consolidated and the
ambit expanded to include "other similar current assets in the
ordinary course of business".
This article was first published on 11th April 2013
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The Legal Metrology Act, 2009 was passed by the Indian Parliament in order to repeal and replace The Standards of Weights and Measures Act, 1976 and the Standards of Weights and Measures (Enforcement) Act, 1985.
In the wake of liberalization and privatization that was triggered in India in early nineties, a realization gathered momentum that the existing Monopolistic and Restrictive Trade Practices Act, 1969 was not equipped adequately enough to tackle the competition aspect of the Indian economy.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).