More changes to filings norms for M&A deals soon: Chawla

To make its procedures more "user friendly", the Competition Commission will soon come out with additional changes to filing requirements for entities seeking approval for M&A deals. Besides, the fair trade watchdog is working on ways to ensure that decisions regarding clearance for mergers and acquisitions (M&A) are taken within 30 days of receiving the proposal. Competition Commission of India Chairperson Ashok Chawla today said CCI will come out with further modifications to filing requirements for M&A deals before the month-end.

"This is a process which we undertake periodically and the idea is to make the regulations, the process as user friendly as possible from our point of view," Chawla said here. These are minor nuts and blots issue but are important from the point of view of the stakeholders, he noted. "We are taking a look at these and we will be in a position to finalise the changes whatever they are before the end of the month," Chawla said.

According to him, there have been concerns about authorised signatories who can sign the application seeking nod for M&A deals on behalf of foreign companies, especially since there is also a provision for invalidation of such notices. Under CCI norms, the regulator has powers to reject an application if it is found to be incomplete. Earlier this year, the watchdog had revised its Combination Regulations making certain procedures easier with respect to entities seeking nod for M&A deals.

At an event organised by industry body Assocham, Chawla said the Commission is working to ensure that approvals for deals are given within 30 working days. "It is 30 working days but actually when there is exchange of information the clock stops and those days are not counted. If you ask the lawyers or businesses they would say the average time taken is 50-60 days," he noted.