While combination which causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India is prohibited under section 6 of the Competition Act, 2002, certain transactions are e

The provisions of section 6 of the Competition Act, 2002 do not apply to: Share subscription or financing facility. Any acquisition by a public financial institution, foreign institutional investor, bank or venture capital fund, pursuant to any covenant of a loan agreement or investment agreement. This exemption appears to have been provided in the Act to facilitate raising of funds by an enterprise in the course of its normal business. Under section 6(5), the public financial institution, foreign institutional investor, bank or venture capital fund, are required to file in prescribed form, details of the control, the circumstances for exercise of such control and the consequences of default arising out of loan agreement or investment agreement, within seven days from the date of such acquisition or entering into such agreement, as the case may be.