The Competition Commission of India (CCI) exercising powered conferred under 64 of the Competition Act, 2002 notified amendments to the Combination Regulations, 2011.
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 regulations.
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