The Competition Commission of India (CCI) exercising powered conferred under 64
of the Competition Act, 2002 notified amendments to the Combination Regulations,
The amendment inter
alia inserts Sub Reg. (3A) to Reg. 5, it mandates that the parties to the
combination shall have to give notice in accordance with the notes to Form I
and Form II issued and published by the Commission. In tern CCI has also
published notes to Form I on its website.
As per amendment to Proviso to Regulation 9, now any
person may be authorized by the board of director of a company for filling and
signing the combination notice. Earlier such authorization was confined to the
Company Secretary of the company only.
Under Reg. 13 (1B), Combination parties now are required
to submit summary of the combination, not containing any confidential
information, in not more than 500 words, comprising details regarding: (a) name
of the parties to the combination; (b) the type of the combination; (c) the
area of activity of the parties to the combination; and (d) the relevant
market(s) to which the combination relates. This summary will be published on
the website of CCI.
The amendment to Reg. 14 now gives power to CCI to
invalidate a combination notice it comes to the knowledge of the Commission
that such notice is not complete and not in conformity with the combination
Now, if approval of the combination is s conditional
upon the parties to the combination carrying out modification to the
combination, the proceedings will terminate upon acceptance of the compliance
report by the Commission under regulation 26. Earlier termination of the
proceeding was on the Commission passing an order under section 31 of the Act.
The Commission now is bound to form its prima facia opinion under section 29 as
to whether the combination is likely to cause or has caused an appreciable adverse
effect on competition within the relevant market in India, within thirty working days of receipt of the notice. Earlier it was thirty days. Insertion of Proviso to
Reg 19(3) will exclude from the thirty working days time, the time taken in
obtaining the information from any enterprise(s) with respect to combination, such
exclusion will not exceed fifteen working days.
Request of confidentiality under Reg 30, now requires
the parties to clearly state the reasons, justification and implications for the
business of the parties to the combination. Further, the parties requesting for
confidentiality are require to file an affidavit as specified in regulation 42
of the Competition Commission of India (General) Regulations, 2009 stating that
the conditions prescribed in regulation 35 of the Competition Commission of
India (General) Regulations, 2009 are satisfied.
Amendment added one entry to Schedule I, it clarifies
that “acquisition of shares, control, voting rights or assets by a purchaser
approved by the Commission pursuant to and in accordance with its order under
section 31 of the Act”, are ordinarily not likely to cause an appreciable
adverse effect on competition in India, notice under sub-section (2) of section
6 of the Act need not normally be filed. [CCI (Procedure in regard to the
transaction of business relating to combinations) Amendment Regulations, 2015]
Source: Legal news India