MCA modifies combination norms under Competition Act
Published: Jul 01, 2017
By TIOLCORP News Service
NEW DELHI, JULY 01 2017: The Ministry of Corporate Affairs, issued a notification on June 30, 2017, in public interest, whereby it confered that any person or enterprise that is party to a combination will not be required to seek approval of fair trade regulator Competition Commission of India (CCI) within 30 days of finalising the particular deal. Currently, combinations beyond a certain threshold need to be intimated to the CCI within 30 days of being finalised by the parties concerned.
The CCI comes under the administrative control of the ministry of corporate affairs. The measure has been taken to alleviate the concerns of stakeholders who felt constrained by the thirty days deadline stipulated in the Competition Act for submission of notices of combination to the CCI. The measure is in line with the Government's objective of providing Ease of Doing Business in India and is expected to bring about immense relief in cases of combinations covered under the Competition Act, 2002.
With this measure, the combinations regime in India will be in line with the global best practices and enterprises will be free to submit notice of combinations to the Commission at a time convenient to them but prior to giving effect to such combinations. Enterprises are also, liable for penalty in case they fail to give notice to the CCI before bringing into effect a particular combination.
See Notification