Panel for NCLAT bench, M&A 'Green Channel'

NEW DELHI: A government panel has recommended several changes to the Competition Act, including introduction of a “green channel” for fast disclosure-based approvals for mergers and acquisitions as well as setting up of a dedicated bench of the National Company Law Appellate Tribunal to deal with appeals against Competition Commission of India (CCI) orders.

Injeti Srinivas, Ministry of Corporate Affairs secretary, who headed the Competition Law Review Committee, presented the panel’s report to finance minister Nirmala Sitharaman on Wednesday.

Delaying merger implementation imposes costs not only on the merging parties but on the society more generally, the report said, adding that a green channel must become the preferred route for merger notification and approval. The report recommended that the government decide on eligibility criteria for approvals via the green channel after discussions with the CCI. The panel also recommended that combinations arising out of resolution plans under the Insolvency and Bankruptcy Code be allowed to be notified through the green channel.

The report said the Competition Act should be amended to allow the government to introduce deal value or transaction value thresholds for combinations to come under scrutiny. The recommendation was made keeping in mind several transactions among tech firms, including the acquisition of Myntra by Flipkart and of WhatsApp by Facebook, which the panel said were done to consolidate market position.