News:The Competition Commission of India (CCI) has given its approval under the ‘green channel’ route to acquisition of Essel Mutual Fund by BAC Acquisitions Pvt Ltd, a Sachin Bansal-owned entity.
About Green Channel:
- The green channel concept was recommended by the high level panel that reviewed the competition law.
- The Green Channel allows for automatic approval for certain Mergers and Acquisitions(M&As) or combinations based on specified criteria and pre-filing consultation.
- The process is aimed at sustaining and promoting a speedy, transparent and accountable review of combination cases to create a culture of compliance and support economic growth.
- Under the framework, green channel approvals can be availed in combinations where there are (a)no horizontal overlaps (b)no existing or potential vertical relationships and (c)no complementary business activities between the combining parties in which any of the combining parties hold shares or have control.
About Competition Commission of India(CCI):
- Competition Commission of India is a statutory body of the Government of India established in 2003.
- It is responsible for enforcing the Competition Act,2002 throughout India and to prevent activities that have an appreciable adverse effect on competition in India.
- CCI consists of a Chairperson and 6 Members appointed by the Central Government.
- The act prohibits (a)anti-competitive agreements (b)abuse of dominant position by enterprises and (c)regulates combinations (acquisition, acquiring of control and mergers and acquisitions) which causes or likely to cause an appreciable adverse effect on competition within India.