The government eased rules for approvals required from the Competition Commission of India, the country’s fairplay watchdog, for companies acquiring businesses.
Enterprises, whose control or assets are were being acquired, were exempted from approval if their asset was Rs 3.5 billion (USD 54 m) crore or if the turnover in the country was Rs 10 billion (USD 154.3 m) crore. Last March, the ministry of corporate affairs had raised the limit for companies exempted from seeking CCI approval.
The revision applied only in case of combinations which were formed due to acquisition and excluded mergers, amalgamations or acquisition of control. There were also suggestion from stakeholders that the rules were applied to the entire company even if one segment of the business was being transferred to another entity. This resulted in several companies falling within the ambit of the Competition law.
Full Content: VCCircle
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