Prerequisite to notify on creation of joint ventures

By Kshitij Sancheti and Vijay Aggarwal, Seth Dua & Associates
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Calculated in terms of market access, regulatory horizon, local target, business diversification and tax implications, joint ventures (JVs) have been viewed as the most strategic entry route to the Indian economy.

The JV has progressed in leaps and bounds as a synergetic business alliance where counterpart resources are leveraged to deliver cutting edge performance.

Kshitij Sancheti Partner Seth Dua & Associates
Kshitij Sancheti
Partner
Seth Dua & Associates

Regulatory considerations have emerged as playing a significant role in the JV at every stage. The Competition Act, 2002, empowers the Competition Commission of India to regulate combinations – namely, mergers, acquisitions and amalgamations – subject to meeting jurisdiction thresholds set out in the act. Notably, sanction from the commission is mandated for such combinations in the manner prescribed under the act and the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (Combination Regulations).

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Kshitij Sancheti and Vijay Aggarwal are partners at Seth Dua & Associates.

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601, 6th Floor

DLF South Court, Saket

New Delhi – 110 017

India

Contact details:

Tel: +91 11 4164 4400

Fax: +91 11 4164 4500

Email: kshitij.sancheti@sethdua.com

vijay.aggarwal@sethdua.com

Website: www.sethdua.com

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