The Competition Commission of India (‘CCI’) is the concerned organization patronizing and fostering the importance of competition in the markets, safeguarding the interests of consumers and ensures that freedom of trade is carried on by the participants.
One of the key functions of the CCI is to control the mergers and acquisitions, above a specified financial threshold (combinations). Ever since the CCI was setup, it has cleared 666 combinations.
Owing to the relentless efforts and endeavours by the CCI for expediting the M&A filing approvals, CCI has initiated a new mechanism which entails automatic scheme of approvals for combinations under the ‘Green Channel’. In accordance with this mechanism, the combination is deemed to have been approved upon filing of the notice in the prescribed format. This initiative would result in significant reduction of time and cost of transactions. This initiative was announced by way of a press release no. 8/2019-20 dated 19 August 2019 issued by the Competition Commission of India.
In addition to the above, the CCI has also revised its pre-filing consultation guidance note for the purpose of expanding its ambit to include consultation for assisting parties to determine whether their combination is eligible for Green Channel.
The parties concerned who intend to file the combination notice may meet the concerned team at the day and time specified for this purpose.
The objective of the Green Channel is to maintain and promote a prompt, apparent and responsible review of combination matters, create a balance between enabling and implementation capacities, create a culture of acquiescence and support economic growth.
CCI Receives the First Green Channel Combination
In a recent development, the CCI on has now received the first green channel combination. The same was announced by CCI vide its press release dated October 7th, 2019. The combination herein related to the acquisition of the Essel Mutual Fund (Essel MF), by an entity forming a part of the Sachin Bansal Group.