CCI Further Amends Combination Regulations - Minority Acquisitions Left Untouched

Article by MM Sharma, Head Competition Law & Policy Practice, Vaish Associates, Advocates, New Delhi, India

The Competition Commission of India ('CCI') by way of a notification dated 09 October 2018 ("Notification") has further amended the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 ('Combination Regulations').

Fortunately, based on strong opposition received from the industry groups including the apex chambers of industry such as the Confederation of Indian Industries ("CII") (in which my opposition was also included), the CCI has dropped a controversial amendment in the explanation to Item 1 of Schedule I of the Combination Regulations which currently exempts minority acquisitions of less than 10% of total shares or voting rights and treats it as solely an investment, provided the acquirer does not get a position in the Board of Directors and does not exercise any preferential