3Novices : Centre eases M&A filing norms

In a recent notification, the ministry of corporate affairs erased the requirement to apprise the Competition Commisison of India (CCI) within 30 days of the signing of a deal for a merger or acquisition (M&A).However, an M&A deal can’t be implemented without CCI clearance. So, competition lawyers say the rule change would end the practice of sending ‘half-baked filings’ to avoid heavy penalties. Earlier, they say, in the rush to comply with the deadline, these filings would contain little substantive information. The penalty used to be one per cent of annual turnover or the relevant assets for delayed filings.Hence, the experts believe the change would result in companies trying to send all the requisite documents at one go to CCI, which could result in wrapping up of M&A cases within stipulated 210 days. Till now, CCI would approach companies every now and then after getting their M&A filings for clarifications. When a clarification is sought, the 210 days period was 3Novices


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