"Ease of doing business in India" is one of the
fundamental mantras in the economic policy framework of
the Government of India. In an effort to re-affirm its resolve, the
Ministry of Corporate Affairs ("MCA") renewed two
significant notifications on 16 March 2022. This Ergo
recaps their necessity and highlights the ramifications of their
revival.
NOTIFICATION RELATING TO SMALL TARGET EXEMPTION
(STE)
Section 5 of the Competition Act, 2002 (as amended) sets out 8
assets and turnover based (standalone and group) thresholds to
determine the notifiability requirement of an acquisition / merger
/ amalgamation. Should the cumulative value of assets / turnover of
the parties jointly exceed the notification thresholds, a
transaction requires a prior approval from the Competition
Commission of India (CCI).
