Centre eases M&A filing norms

Penalty used to be 1% of annual turnover or the relevant assets for delayed filings

In a recent notification, the Ministry of Corporate Affairs erased the requirement to apprise the Competition Commission of India (CCI) within 30 days of the signing of a deal for a merger and acquisition (M&A).

However, an M&A deal can’t be implemented without CCI clearance. So, competition lawyers say the rule change would end the practice of sending ‘half-baked filings’ to avoid heavy penalties. Earlier, they say, in the rush to comply with the deadline, these filings would contain little substantive information. 

The penalty used to be one per cent of annual turnover or the relevant assets for delayed filings.