Green Channel for Mergers and Acquisitions
- 20 Aug 2019
- 1 min read
The Competition Commission of India has introduced a green channel route for clearing certain categories of mergers and acquisitions.
- The Competition Law Review Committee in its report suggested a slew of measures to improve insolvency resolution process.
- One of the key recommendations was the creation of a “Green Channel” for automatic approval of certain M&A deals, including those under the Insolvency and Bankruptcy Code (IBC).
- The green channel concept — recommended by the high level panel that reviewed the competition law — would allow for an automatic system for speedy approval of combinations, subject to certain conditions.
- The 'Green Channel' would allow automatic approval for certain M&A agreements based on specified criteria and pre-filing consultation.
- The concept of a Green Channel, akin to those in countries like Singapore, Australia, New Zealand, Malaysia and Indonesia, is a step towards improving ease of doing business.