Chapter II - Prohibition of Certain Agreements, Abuse of Dominant Position and Regulation of Combinations
Section 6
Section 6: regulation of combinations
Once a proposed transaction is a combination under Section 5, Section 6 governs the competition test, notice to CCI and when the deal may take effect. It also provides a deemed-approval route and exemptions for qualifying cases.
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This article is for general information. Refer to the Competition Act, 2002 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Introduction
A combination that causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India is prohibited and void. As amended in 2023, Section 6 requires notice before the combination is consummated and generally imposes a standstill until CCI passes an order under Section 31 or 150 days pass from the notice, whichever is earlier.
Key takeaways
Notify before closing
After board approval of a merger or amalgamation, or after signing the agreement or other document for an acquisition, notice must be given to CCI before the combination is consummated. The old 30-day filing deadline was removed by the 2023 amendment.
Observe the standstill
Under Section 6(2A), a notified combination cannot take effect until CCI passes a Section 31 order or 150 days pass from the notice, whichever is earlier. Section 6A and the green channel have their own rules.
Exemptions need their own test
Section 6(7) and the 2024 exemption rules relieve listed categories from Section 6(2), (2A) and (4). Calling a deal 'intra-group' or 'an investment' does not by itself establish an exemption.
Screen the competition effect
Section 6(1) bars a combination that causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India. Before filing, parties should identify horizontal overlaps, vertical and complementary links, concentration, entry conditions and possible foreclosure. CCI's detailed assessment uses the factors in Section 20(4).
Plan the notice and closing sequence
Section 6(2) ties the notice to a trigger: board approval of a merger or amalgamation under Section 5(c) or (d), or execution of an agreement or 'other document' for an acquisition under Section 5(a) or (d) or acquiring control under Section 5(b). The 2023 Explanation treats a document conveying an agreement or decision to acquire, or a SEBI takeover public announcement, as an 'other document'.
Prepare the notice form, information and fee under the CCI (Combinations) Regulations, 2024. Write closing conditions so that nothing that could count as partial implementation happens before clearance.
Understand the 150-day period
The 2023 amendment cut the Section 6(2A) period from 210 days to 150 days. The combination may take effect after a Section 31 order or the end of that period, whichever is earlier. Defects in the notice, time exclusions and procedural steps under the regulations can change the actual calendar, so compute the date from the Act and regulations rather than assuming 150 days from a first draft filing.
Use special routes only when eligible
Sections 6(4) to (6) set up the green channel. A combination meeting the criteria in the Competition (Criteria of Combination) Rules, 2024 can be notified in the specified form; on filing and acknowledgement it is deemed approved. Those criteria require that the parties, their group entities and their affiliates do not offer similar, identical or substitutable products or services, and are not active at different stages of the same production chain or in complementary products or services. 'Affiliate' includes an enterprise in which another holds 10% or more of shares or voting rights, has a board seat or observer right, or can access commercially sensitive information.
If CCI later finds, within the Section 20(1) period, that the criteria were not met or that information was materially incorrect or incomplete, the deemed approval is void from the start. CCI must hear the parties before passing such an order.
Section 6(7), with the Competition (Criteria for Exemption of Combinations) Rules, 2024, exempts the categories listed in the rules' Schedule from Section 6(2), (2A) and (4). Section 6A separately deals with qualifying open offers and stock-exchange acquisitions.
Lender and investor carve-out
Section 6(9) says the section does not apply to share subscription, financing facility or any acquisition by a public financial institution, foreign portfolio investor, bank or Category I alternative investment fund under a covenant of a loan agreement or investment agreement. Check that the acquirer is one of these entities and that the acquisition arises from such a covenant.
Official sources
- Competition (Amendment) Act, 2023 (CCI copy) — section 7 amends section 6
- S.O. 3846(E), 9 September 2024 — 2023 amendment ss.6-8 in force from 10 September 2024
- Competition (Criteria of Combination) Rules, 2024, G.S.R. 548(E) — green channel
- Competition (Criteria for Exemption of Combinations) Rules, 2024, G.S.R. 549(E)
- CCI (Combinations) Regulations, 2024
- CCI Competition Advocacy Booklet 2026
- Competition Act, 2002 — principal text (CCI copy; section 6 since amended)
Practical checklist
Do
- Complete the Section 5 threshold and deal-value analysis first.
- Record each trigger document, the planned filing date and the expected closing steps.
- Check the green-channel criteria and the exemption Schedule against actual ownership, affiliates and business overlaps.
- Keep a record of pre-closing conduct and obtain the Section 31 order or a defensible standstill calculation before closing.
Avoid
- Do not rely on the old 210-day period or the 30-day filing language in the older principal Act text.
- Do not implement any part of a notifiable combination before the standstill allows it.
- Do not treat a green-channel filing as final protection if eligibility or disclosures are uncertain.
Glossary
- AAEC
- Appreciable adverse effect on competition within the relevant market in India.
- Standstill
- The bar on a notified combination taking effect before the Section 6(2A) condition is met, subject to the special routes in the Act.
- Green channel
- The Section 6(4) to (6) route under which an eligible combination is deemed approved on filing and acknowledgement, subject to later review.
Frequently asked questions
Must a notifiable combination still wait 210 days?
No. The 2023 amendment, in force from 10 September 2024, changed Section 6(2A) to 150 days, or earlier if CCI passes a Section 31 order.
Can parties notify after completing the deal?
No. Section 6(2) requires notice before the combination is consummated, and Section 6(2A) bars it from taking effect during the standstill.
Is green-channel approval automatic for every deal with no horizontal overlap?
No. The parties, their group entities and affiliates must also have no vertical or complementary links, and 'affiliate' is defined broadly in the 2024 Criteria of Combination Rules.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026