Government notifies changes in competition law related to M&As
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Synopsis
"The government has increased the existing financial thresholds as prescribed under Section 5 of the Competition Act by 150 per cent. Further, the De Minimis or the Small Target Exemption thresholds have also been increased. This is in line with the government motto of ease of doing business in India as less M&A deals would require CCI approval," he said.
By PTI
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The government has notified certain changes under the competition law with respect to mergers and acquisitions that are also expected to reduce the regulatory burden on the Competition Commission of India (CCI). Notifications have been issued by the corporate affairs ministry related to Section 5 of the competition law. Section 5 pertains to combinations.
"The government has increased the existing financial thresholds as prescribed under Section 5 of the Competition Act by 150 per cent. Further, the De Minimis or the Small Target Exemption thresholds have also been increased. This is in line with the government motto of ease of doing business in India as less M&A deals would require CCI approval," he said.
He also said the move would reduce regulatory burden on the CCI.
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Vaibhav Choukse, Partner and Head of Competition Law at JSA Advocates and Solicitors, said it is an important development concerning M&As in the country. "The government has increased the existing financial thresholds as prescribed under Section 5 of the Competition Act by 150 per cent. Further, the De Minimis or the Small Target Exemption thresholds have also been increased. This is in line with the government motto of ease of doing business in India as less M&A deals would require CCI approval," he said.
He also said the move would reduce regulatory burden on the CCI.
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