The Ministry of Corporate Affairs (MCA) w.e.f. 7 March 2024 has notified revised thresholds to claim exemption from combination regulations under the Competition Act, 2002 (the Act).
The comparative table summarizing earlier and amended thresholds is as follows:
Earlier thresholds | Amended thresholds |
A transaction is exempt from the Notification requirement under
the Act if the target (i.e., acquiree or transferor company) has:
|
A transaction is exempt from the Notification requirement under
the Act if the target (i.e., acquiree or transferor company) has:
|
Our CommentsThe Act requires prior Notification and approval of the
Competition Commission of India if a combination between
enterprises is likely to cause appreciable adverse effects on
competition in India. The Central Government (i.e., MCA) is
empowered to grant exemptions to certain transactions. Accordingly,
MCA initially granted an exemption to a transaction where assets or
turnover do not exceed the prescribed threshold. The said
thresholds were increased from time to time. On the basis of the
wholesale price index and exchange rate of the rupee, the said
thresholds have now been increased to the present level. The
Notification takes effect from 7 March 2024 and grants exemption
for a period of two years from the date thereof. |
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