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TMI BlogCompetition (Criteria for Exemption of Combinations) Rules, 2024.X X X X Extracts X X X X X X X X Extracts X X X X ..... se requires, (i) Act means the Competition Act, 2002 (12 of 2003); (ii) Schedule means the schedule appended to these rules. (2) The words and expressions used in these rules but not defined, shall have the same meanings, respectively assigned to them in the Act. 3. Criteria for exemption of categories of Combinations. the categories of combinations which fulfil the criteria mentioned in the Schedule shall be exempted from the requirement to comply with sub-sections (2), (2A) and (4) of section 6 of the Act . SCHEDULE Criteria for exemption [see rule 3] 1. An acquisition of shares of an enterprise in ordinary course of business where the said transaction is (a) an acquisition of unsubscribed shares upon devolvement as per covenant of an und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as an investment in so far as the total shares or voting rights held by the acquirer, directly or indirectly, does not entitle the acquirer to hold more than twenty-five per cent. of the total shares or voting rights of the company, of which shares or voting rights are being acquired, not leading to acquisition of control of the enterprise whose shares or voting rights are being acquired. Explanation : - In Rule 2, the acquisition of shares or voting rights of an enterprise shall be treated as solely as an investment where (a) pursuant to the said acquisition, the acquirer does not gain a right or ability to have a representation on the board of directors of any enterprise either as a director or as an observer; (b) pursuant to the said a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d more than twenty-five per cent. of the shares or voting rights of the enterprise, either prior to or after such acquisition: Provided that (i) such acquisition does not result in acquisition of control of such enterprise by the acquirer or its group; (ii) pursuant to the acquisition, the acquirer or its group entities do not gain a right or ability to have a representation on the board of directors of any enterprise either as a director or as an observer for the first time; (iii) pursuant to the acquisition, the acquirer or its group entities do not gain a right or ability to access commercially sensitive information of any enterprise for the first time except where the acquirer or its group entities already have right or ability to have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dinary course of business. The acquisition of assets of an enterprise shall be treated as in ordinary course of business provided that said acquisition involves acquisition of stock-in-trade, raw materials, stores and spares, trade receivables or other similar current assets that do not constitute business. 7. An acquisition of assets, not directly related to the business activity of the party acquiring the asset or made solely as an investment, not leading to control of the enterprise whose assets are being acquired except where the assets being acquired represent substantial business operations in a particular location or for a particular product or service of the enterprise, of which assets are being acquired, irrespective of whether suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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