The Ministry of Corporate Affairs (MCA) has raised the threshold limit for mergers and acquisitions requiring approval from the Competition Commission of India (CCI). This new limit is based on the wholesale price index and exchange rate of rupee, and has been increased by 150 per cent. Additionally, MCA has exempted mergers or acquisitions with an asset value below Rs 450 crore or turnover less than Rs 1,250 crore from CCI approval, for a duration of two years from the date of publication in the official gazette.
These regulations are outlined in Section 5 of the Competition Act, which defines ‘Combination’ under the Act and specifies the criteria for determining thresholds in cases of acquisition, control taking, mergers, or amalgamations.
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