Regulation of Combinations (Section 5 & 6)
Combination refers to merger or amalgamation amongst enterprises, or acquisition of control, shares, voting rights or assets of an enterprise by another person, provided (i) the financial threshold specified in the Section 5 of the Act are satisfied; and (ii) merger, amalgamation and acquisition are not covered under any of exemption notification. Any person or enterprise, which proposes to enter into a combination, is required to give notice to the Commission under Section 6(2) of the Act any time prior to consummation of the same. However, categories of combinations mentioned in schedule l of Combination Regulation are ordinarily not likely to cause an appreciable adverse effect on competition in India, therefore notice under sub-section (2) of section 6 of the Act need not normally be filed, in respect thereof. If a combination causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India, it can be modified/prohibited by the Commission.