The government has introduced a proposal to waive the requirement of Competition Commission approval for intra-group transactions and select mergers and acquisitions, aiming to alleviate the regulatory obligations on the oversight body.
The Ministry of Corporate Affairs has released draft regulations outlining exemptions for certain types of mergers and acquisitions from the necessity of seeking approval from the Competition Commission of India (CCI).
Vaibhav Choukse, Partner & Head of Competition Law at JSA Advocates & Solicitors, stated that the draft regulations specify particular categories of M&A transactions that won't mandate CCI approval. These encompass intra-group dealings, specific forms of minority and creeping acquisitions, and rights issues, as they are not anticipated to impact market competition.
Choukse noted that the regulations will revise and replace the current exempted categories of M&A transactions. Additionally, the rules will amend the affiliate test essential for identifying overlaps among the parties involved in the M&A deal.
He emphasized that this initiative will alleviate the regulatory load on the CCI and offer significant relief to M&A participants.
Previously, in September, draft combination regulations were issued for public feedback, without mentioning exempted transaction categories.
Meanwhile, the ministry has also introduced draft regulations concerning green channel approvals and 'De Minimis' provisions.
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