Executive Summary:
This notification announces the Competition Commission of India (CCI) Procedure in regard to the transaction of business relating to combinations Amendment Regulations, 2014. These regulations amend the 2011 regulations concerning the procedure for business transactions related to combinations, coming into force on the date of publication in the Official Gazette, March 28, 2014. Key changes include modifications to filing requirements, fee amounts, and form details.
Key Points / Main Content:
Filing Requirements and Procedures:
* A subregulation is inserted to ensure that filing notice requirements are determined by the transaction's substance, disregarding structures designed to avoid notice.
* Regulation 29 is omitted.
* Regulation 14 is amended such that after the words "regulation 8 of these regulations" the following words are inserted "or any response filed pursuant to these regulations".
Fee Amendments:
* Clause (a) of Regulation 11 is amended to increase the fee from Rupees ten lakhs (Rs. 10,00,000) to Rupees fifteen lakhs (Rs. 15,00,000).
* Clause (b) of Regulation 11 is amended to increase the fee from Rupees forty lakhs (Rs. 40,00,000) to Rupees fifty lakhs (Rs. 50,00,000).
Schedule Amendments:
* Category 10 is omitted from Schedule I.
Form I Amendments:
* In paragraph 5.1, clause (f) is substituted to include any horizontal overlap or vertical relationship between the businesses of the parties to the combination.
* After paragraph 6.7, paragraph 6.8 is inserted, requiring disclosure of filing requirements in other jurisdictions and submission of certified copies of orders/decisions passed in those jurisdictions.
Form II Amendments:
* Paragraph 8.2 is substituted to furnish details as per audited annual accounts of immediately preceding two financial years, separately, for all the parties to the combination
Verification Amendment:
* Under the heading VERIFICATION, the words IMPORTANT: ALL COMBINING PARTIES MUST VERIFY THE CONTENTS BY SIGNING ON EACH PAGE OF FORM AND ON THIS PAGE shall be omitted.
Impact Analysis:
Businesses Involved in Combinations:
* Impact: Businesses are impacted by changes to filing requirements, increased fees, and revised disclosure obligations.
* Action Required: Businesses must adhere to the new regulations when planning or executing combinations, including adjusting financial provisions for increased fees and providing additional information in the prescribed forms.
Competition Commission of India (CCI):
* Impact: The CCI's procedures for handling business transactions related to combinations are updated.
* Action Required: The CCI must implement and enforce the amended regulations, including updating internal processes and guidelines.
Legal Professionals:
* Impact: Legal professionals advising businesses on combination transactions need to be aware of the updated regulations to ensure compliance.
* Action Required: Legal professionals must familiarize themselves with the amendments to provide accurate advice to their clients.
Key Entities Referenced
Competition Commission of India: An organisation that prevents activities that have an appreciable adverse effect on competition in India.
Competition Act, 2002: An act of the Parliament of India that regulates competition in India.
Competition Commission of India Procedure in regard to the transaction of business relating to combinations Regulations, 2011: Regulations concerning the procedure for business transactions related to combinations, as defined by the Competition Commission of India.
Competition Commission of India Procedure in regard to the transaction of business relating to combinations Amendment Regulations, 2014: Amendments to the 2011 regulations, specifically addressing procedures for business transactions related to combinations.
New Delhi: The location where the notification was issued.
Official Gazette: The official government publication in which the regulations' publication date is announced.
Form I: A form referenced within Schedule II of the regulations, related to providing information for combinations.
Form II: A form referenced within Schedule II of the regulations, related to providing information for combinations.
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1414 GI/2014 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
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THE COMPETITION COMMISSION OF INDIA
NOTIFICATION
New Delhi, the 28th March, 2014
The Competition Commission of India (Procedure in regard to the transaction of business relating to
combinations) Amendment Regulations, 2014
F. No. CCI/CD/Amend/Comb. Regl./2014.—In exercise of the powers conferred by Section 64 of the
Competition Act, 2002 (12 of 2003), the Competition Commission of India hereby makes the following regulations
further to amend the Competition Commission of India (Procedure in regard to the transaction of business relating to
combinations) Regulations, 2011, namely:—
1. Short title and commencement.—
(1) These regulations may be called the Competition Commission of India (Procedure in regard to the
transaction of business relating to combinations) Amendment Regulations, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Competition Commission of India (Procedure in regard to the transaction of business relating to
combinations) Regulations, 2011,—
(1) in regulation 9, after sub-regulation (4), the following sub-regulation shall be inserted, namely:—
“(5) The requirement of filing notice under regulation 5 of these regulations shall be determined with
respect to the substance of the transaction and any structure of the transaction(s), comprising a
combination, that has the effect of avoiding notice in respect of the whole or a part of the combination
shall be disregarded.”;
(2) in regulation 11,—
(a) in clause (a), for the words, brackets and the figures “rupees ten lakhs (Rs. 10,00,000) only;”, the
following shall be substituted, namely:-
“rupees fifteen lakhs (Rs. 15,00,000) only;”;
(b) in clause (b), for the words, brackets and the figures “rupees forty lakhs (Rs. 40,00,000) only;”, the
following shall be substituted, namely:—
“rupees fifty lakhs (Rs. 50,00,000) only;”;
(3) in regulation 14, in sub-regulation (3), after the words “regulation 8 of these regulations”, the following
words shall be inserted, namely:—
“or any response filed pursuant to these regulations”;
(4) regulation 29 shall be omitted;
(5) in Schedule I, category (10) shall be omitted;
(6) in Schedule II,—
(a) in Form I,
(i) in paragraph 5.1, for clause (f), the following clause shall be substituted, namely:—
“(f) any horizontal overlap or vertical relationship between the business of the parties to
the combination (including between target company and acquirer or any enterprise of
the group)”;
(ii) after paragraph 6.7, the following paragraph shall be inserted, namely:—
“6.8 Whether this combination is subject to filing requirements in jurisdictions other than
India? If yes, list the notified, or to be notified, jurisdictions along with the certified
copy(s) of the order(s)/decision(s) passed in that jurisdiction.”;
(b) in Form II,—
(i) for paragraph 8.2, the following paragraph shall be substituted, namely:—
“ 8.2 Furnish the following details, as per audited annual accounts of immediately preceding two
financial years, separately, for all the parties to the combination:4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
Name of enterprise(s) Year Value of assets Aggregate Turnover
In India (Rs. Worldwide (US$ In India (Rs. In Worldwide (US$ in
In crore) in Million) crore) Million)”;
(ii) under the heading ‘VERIFICATION’, the words “IMPORTANT: ALL COMBINING PARTIES MUST VERIFY
THE CONTENTS BY SIGNING ON EACH PAGE OF FORM AND ON THIS PAGE” shall be omitted.
SMITA JHINGRAN, Secy.
[ADVT. III/4/Exty./187-M/13]
Note :—Principal Regulations published vide Notification No. F. No. 1-1/ Combination Regulations/2011-12/CD/CCI in
the Gazette of India, Extraordinary, Part III, Section 4, dated the 11th May, 2011. Subsequently amended vide
notification No. F. No. 3-1/Amend/Comb. Regl./2012/CD/CCI in the Gazette of India, Extraordinary, Part III,
Section 4, dated the 23rd February, 2012 and vide notification No. F. No. 3-1/Amend/Comb. Regl./2013/
CD/CCI in the Gazette of India, Extraordinary, Part III, Section 4, dated 4th April, 2013.
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.