Friday, July 15, 2011

COMPETITION COMMISSION NEW RULES ON M&AS

HIGHLIGHTS:


  • M&As abroad with insignificant impact on India exempted
  • Indian companies with assets of more than Rs.1,500crore or a turnover of Rs. 4,500 crore need CCI approval.
  • The threshold for foreign companies is $750 million assets or a turnover of $2,250 million. They should have Rs. 750 crore assets or a Rs. 2,250 crore turnover in India.
  • M&As in public domain before June one not to come under CCI even if the deal happens after June 1.
  • Acquisition of stock-in-trade, raw materials and assets exempted This is besides investment in the ordinary course of business, bonus issues, stock splits, etc.
  • Interconnected deals can be filed as one
  • Interconnected deals can be filed as one
  • Fee reduced from Rs.40 lakh in draft norms to Rs. 50,000. It will be Rs. 10 lakh only in exceptional cases;
  • No fee for venture capital funds and financial institutions

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