• Notification Date: 14-11-2022
• Notification No: N/A

MCA Reduces Time Limit for Combination Assessment

Ministry of Corporate Affairs (MCA) has reduced the timeline for the assessment of combinations. The new timeline will help to make the process swift and time bound. The MCA believes that this revised time period for assessment of combinations will help in providing certainty to the businesses. The Parliamentary Standing Committee on Finance is revising the new bill that is being prepared to amend the Competition Act.

One of the new amendments made on the assessment of combinations will reduce the time period from 210 days to 150 days. Another amendment is being made according to which the Competition Commission of India (CCI) will be required to form a prima facie opinion within a span of 20 days for expeditious approval of the combinations.

In competition law parlance, the mergers and acquisitions are referred to as combinations. As per the statement of the Ministry of Corporate Affairs, the amendments to reduce the time period for combination assessment is being made to make the process much swifter and time bound. The ministry stated in a recent submission before the panel that this 20-day time frame will provide much assurance and certainty with respect to a prima facie view, failing which it will be considered as deemed approved.

In response to the queries of various stakeholders regarding the new changes brought by the MCA related to combination assessments, the ministry asserted that these amendments have been made to balance the flexibility in proposing the modifications along with timely reviews and completion of combinations.

The Competition Commission of India (CCI) has maintained that approval is granted within 17-18 days. But in some cases, it is not a prima facie view beyond 30 days, taken to provide the combination regulations. At present, there is no cap for taking a prima facie view.