ForumIAS LATEST
- Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
- [Pre-order] Ethics Redbook 3rd Edition: Delivery starts from 10th October onwards Click Here to Read More →
- 21 Sept. | Forum Residential Coaching (FRC) for UPSC preparation Click Here to know more →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 10th Oct. Click Here to Read More →
Centre eases pre-merger filing norms: (The Hindu)
Context:
- In order to boost mergers and acquisitions (M&A), the center removes 30-day notice rule.
Introduction:
- According to a notification on June 29 by the Ministry of Corporate Affairs, the government, in public interest has done away with the thirty-day time period to submit an application for pre-merger clearance before the Competition Commission of India (CCI).
- This new provision (exemption from the 30-day time period) will be valid for five years starting June 29, 2017.
Merits:
- Now, the parties can make a CCI application at any time in course of an acquisition.
- The new notification provides the parties with liberty and flexibility to decide at what stage they want to make the CCI filing, depending on the deal parameters and commercial terms.
- This initiative will be beneficiary for multi-jurisdiction transactions where parties may be burdened with regulatory requirements in several jurisdictions and, for which, they need more time to assess the Indian law implications and prepare a comprehensive CCI application.
