Centre moots new exemptions framework for M&A deal reporting to CCI

In what’s seen as an enormous aid for the trade, the Centre proposes to exempt reporting sure notifiable M&A transactions to the Competitors Fee of India (CCI). 

That is anticipated to cut back the trade’s compliance burden and facilitate ease of doing enterprise. 

A draft of the Competitors Fee of India (exempted mixture) Guidelines 2024 has been issued by the Company Affairs Ministry (MCA). Public feedback have been invited on the draft Guidelines by April 10.

Commenting on the draft,   Samir Gandhi, Co-founder & Associate, Axiom5Law Chambers stated the draft Guidelines present a helpful framework for evaluating whether or not sure transactions are exempt from notification to the CCI. “Previous follow and interpretations had resulted in some ambiguity within the availability of those exemptions, and the proposed draft exemptions are a step in the proper course to introduce a component of predictability and cut back uncertainty”, Gandhi stated.

Vaibhav Choukse, Associate & Head – Competitors Regulation, JSA Advocates  & Solicitors, stated the draft guidelines enlist sure sorts of M&A transactions which won’t require approval from the Competitors Fee of India, together with intra-group transactions, sure kinds of minority and creeping acquisitions, and rights challenge as these won’t have an effect on the competitors available in the market. 

“The principles will substitute and modify the prevailing classes of M&A transactions which can be exempt. The principles additionally modify the affiliate check required to map overlaps between the events to the M&A transaction”, he added.