The Competition Commission of India makes the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Amendment Regulations, 2016, in order to amend the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011, namely;
(1) in regulation 5,-
(a) in sub-regulation (2), the word “verified” shall be omitted;
(b) in sub-regulation (8), for the second proviso, the following proviso shall be substituted, namely:-
‘Provided further that where a public announcement has been made in terms of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, for acquisition of shares, voting rights or control, such public announcement shall be deemed to be the “other document”.’;
(2) in regulation 6, in sub-regulation (2), the words “and verified” shall be omitted;
(3) in regulation 9,—
(a) in sub-regulation (1), in the proviso, for the words “board of directors of the company for the said purpose”, the word “company” shall be substituted;
(b) in sub-regulation (3), in the proviso, for the words “board of directors of the company for the said purpose”, the word “company” shall be substituted;
(c) in sub-regulation (4), the words “or inter-dependent on each other” shall be omitted;
(4) in regulation 13, in sub-regulation (1), the words “and verified” shall be omitted;
(5) in regulation 14, in sub-regulation (2A), the following provisos shall be inserted, namely:—
“Provided that the Commission may give an opportunity of being heard to the parties to the combination in accordance with regulation 24 of these regulations before deciding to invalidate a notice:
Provided further that the period between the commencement of proceedings under sub-regulation
(2A) of regulation 14 of these regulations till the decision of the Commission regarding validity of the notice, shall be excluded from the period specified in sub-section (11) of section 31 of the Act and sub-regulation (1) of regulation 19 of these regulations.”;
(6) regulation 31 shall be omitted;
(7) in Schedule I to these regulations,—
(a) in category (1), the following explanation shall be inserted, namely:—
“Explanation:- The acquisition of less than ten per cent of the total shares or voting rights of an enterprise shall be treated as solely as an investment:
Provided that in relation to the said acquisition,-
(A) the Acquirer has ability to exercise only such rights that are exercisable by the ordinary shareholders of the enterprise whose shares or voting rights are being acquired to the extent of their respective shareholding; and
(B) the Acquirer is not a member of the board of directors of the enterprise whose shares or voting rights are being acquired and does not have a right or intention to nominate a director on the board of directors of the enterprise whose shares or voting rights are being acquired and does not intend to participate in the affairs or management of the enterprise whose shares or voting rights are being acquired.”;
(b) in category (1A), the words “not resulting in gross acquisition of more than five per cent (5%) of the shares or voting rights of such enterprise in a financial year,” shall be omitted;
