The above thresholds are presented in the form of a table below:

APPLICABLE TO ASSETS TURNOVER

In India Individual `2000 cr. ` 6000 cr.

Group ` 8,000 cr. ` 24,000 cr.

In India and outside ASSETS TURNOVER

Total India Total India

Individual parties $ 1.00 b` 1000 cr $ 3.00 B ` 3000 cr

Group $ 4 bn. ` 1000 cr. $ 12 bn. 3000 cr.

The turnover shall be determined by taking into account the values of sales of goods or services. The
value of assets shall be determined by taking the book value of the assets as shown in the audited books
of account of the enterprise, in the financial year immediately preceding the financial year in which the
date of proposed merger falls, as reduced by any depreciation.

COMBINATIONS IN RESPECT OF WHICH NOTICE NEED NOT NORMALLY BE FILED The Combination
Regulations provide that notice in respect of certain combinations, specified under Schedule I, need not
normally be filed with the Commission as those transactions are ordinarily not likely to cause
appreciable adverse effect on competition in India.

1. An acquisition of shares or voting rights, referred to in sub-clause (i) or sub-clause (ii) of clause (a) of
section 5 of the Act, solely as an investment or in the ordinary course of business in so far as the
total shares or voting rights held by the acquirer directly or indirectly, does not entitle the acquirer
to hold twenty five per cent (25%) or more of the total shares or voting rights of the company
2. An acquisition of shares or voting rights, referred to in sub-clause (i) or sub-clause (ii) of clause (a) of
section 5 of the Act, where the acquirer, prior to acquisition, has fifty percent (50%) or more shares
or voting rights in the enterprise.
3. An acquisition of stock-in-trade, raw materials, stores and spares, trade receivables and other
similar current assets in the ordinary course of business.
4. An acquisition of shares or voting rights pursuant to a bonus issue or stock splits or consolidation of
face value of shares or buy back of shares or subscription to rights issue of shares, not leading to
acquisition of control.
5. Any acquisition of shares or voting rights by a person acting as a securities underwriter or a
registered stock broker of a stock exchange on behalf of its clients, in the ordinary course of its
business and in the process of underwriting or stock broking, as the case may be.
6. An acquisition of shares or voting rights or assets, by one person or enterprise, of another person or
enterprise within the same group, except in cases where the acquired enterprise is jointly controlled
by enterprises that are not part of the same group
7. A combination referred to in section 5 of the Act taking place entirely outside India with insignificant
local nexus and effect on markets in India.

Penalties
The Commission also has the power to impose a fine which may extend to one per cent of the total
turnover or the assets of the combination, whichever is higher, for failure to give notice to the
Commission of the combination.

ORIGIN OF COMPETITION ADVOCACY The concept of competition advocacy is mthcr of mt origin having
gained acceptance in developed and developing economics with the pdud opening up of the erstwh~le
state monopolres In sectors such as telwom, electricity, oil etc, to murkrf economy and when the
beneficial effects of fie conipctition sturted emaging hm these sectors. In most countries the concept wu
linkcd auto~ilatially to the succcwtul implementation of the mn~pctition policy coupled with
cnf~brcanent of the competition law. Conipctition law enfc)rcment is much older than compctil~on
advmcy. I+vm though in jurisdictions w~th a very long enfi)rccmcnt tradition, cc~mpetition advtracy
efforts date back to the curly dccadcs of thc ?Olh ccrrtury, thcre was a rcncwd tmphasis on competition
advocacy in tllc 1070s. in some jurisdictrons. 7.3

THE NEED AND PURPOSE OF COLIPETITION A1)VOCAC:Y There is a direct relationship hdwiun
competition advocacy and cnforccmcnt of a competition law imd this ncxus is cspc~ially strong in
trdnsition and dcvcleping economics, whcrc an appropriate understanding or appreciation ol' m~rits of
competitive market economic systcms is oflcn lacking. Competition advocacy facilitata synergy bctwccn
g)vcnimcnt acqion and a)mpctition. Compctitiva process may be affected advtrsely by privatc as well as
public ratriclions on l4mce, removal of public rcstricticrns on compctition is as imprtant es rcrnoval of
private restrictions. In fact, public restrictions arc more prmicious than privatr ones. Compcqition
advocacy is a core instrumcat to address public restrictions on utmpctition and to promote competitive
marki~s

OBJECTIVES OF C OMPETITION ADVOCACY P

 One objective can be to raise the gmeral awarrmss about competition issues and concerns amonp
regulators, academia, the judiciary d oh public and private stakeholders.
 To enable the competition agcncies to participate in the fornulation of a country's economic
policies. which may affcct the competitive marlrct structures, business conduct and economic
performance at large. i
 To promote competition friendly legisletion with public stokrholdm, mainly regulators, legislators at
the National nnd Sub-National Icvels. I
 To enhancc understanding and acceptability of the competition rules by the stakeholders. i
 To promote active involvcmcnt of comptition agencies in the rcylatory impad assessment (RIA)
process.
 Involve competition agcncies in liearinyv before scvtor regulutars, parliamentary committees, or as
amicus curiae in court prc~dings.

INTERFACE BETWEEN ADVOCACY AND COMPETITION ENFORCEMENT: Advocacy and cnforccmcnt havc a
common ohjative as thcy strive to cnsurc that competition 1s not distorted and uodcrrnind. Iiaicr, hoth
are complementary to each othcr. The effectrvcncss of advocacy would Jcfinitcly strcnbqhcn Ihc pm~ of
cnforccmcnt, as tt facilitates last resort to sectional mechanism.