INTRODUCTION
On March 06, 2024, the Ministry of Corporate Affairs
("MCA") issued two separate notifications in relation to
the following:
- notification to enhance the threshold for an acquisition to
qualify as combination under the Competition Act, 2002
("Act"); and
- notification to revise the value of assets and turnover to
avail 'De-Minimis / Small Target Exemptions'.
We have discussed both these notifications in detail below
ENHANCEMENT OF THRESHOLD FOR COMBINATIONS
Section 5 of the Act lays down the thresholds for an
acquisition, merger or amalgamation of one or more enterprises, to
qualify as a combination. In case a transaction qualifies as a
combination and breaches the thresholds laid down in Section 5,
then a prior approval of the Competition Commission of India
("CCI") is required.
