CCI promises easy M&A approval process for companies

Promising an easy and fast-track approval process for merger and acquisitions, fair trade regulator CCI has said the new application forms for such clearances ensure valid and complete filings by the companies.
With concerns having been raised in some quarters that the new forms could make the filings cumbersome for the companies, the Competition Commission of India (CCI) Chairman Ashok Chawla said the regulator will not be looking at invalidating "every filing".
Mergers and Acquisitions (M&As) beyond a certain threshold require approval from the Commission, which keeps a tab on anti-competitive practices at the market place. The regulator recently made changes to the Form I that needs to be submitted by the entities seeking nod for M&As.

When asked whether the regulator would have a relook at the revised form, Chawla said he does not think it is necessary as of now.
"Let us see how it operates and how many cases are actually invalidated, which really cause concerns for those who are filing with us. Then, we will see whether we need to change our approach or they need to change the way in which the filings are made.
"At the moment, we don't see there is need for any change. We are always open to making necessary changes as and when the need arises," Chawla told PTI in an interview.

While there is now a provision to reject an incomplete application, Chawla said there are also a number of simplifications that have been done.

"Our objective is not to invalidate every filing. The end objective is to inculcate in them the spirit of filing something which is both valid and complete... I don't think the industry really needs to have exaggerated fears on this count," the CCI Chairman said.
Stating that the Form I has been made little more comprehensive, he said now companies are required to give sufficient information in the first instance itself.
Earlier, the form was very bare and very simple and almost containing no material details, he added.

"Now, Form I has been made little more comprehensive so that in the first instance (itself) the necessary and perhaps sufficient information (is given) for us to make a decision so that we don't really waste anybody's time and we don't stretch the process of examination needlessly long," he noted.
In recent times, there has also been a rise in the number of applications received by CCI seeking approval for M&As.
Citing an example of simplified requirement, he said that persons who can sign on the form on behalf of foreign companies have been left to the entities' discretion.
"It is a mixture of ease from their point of view and also ease from the point of view from the regulator and its staff who have to look at the application," he noted.