The Competition Commission of India (CCI) has given its approval under the 'green channel' route to acquisition of Essel Mutual Fund by a Sachin Bansal-owned entity.
This is the first clearance under the 'green channel' route, a speedier approval mechanism put in place by the CCI.
In a tweet on Monday, the CCI said it has accorded 'green channel' approval for the acquisition of Essel Finance Asset Management Company and Essel Mutual Fund by BAC Acquisitions Pvt Ltd.
BAC Acquisitions is a private company founded by Sachin Bansal, a co-founder of Flipkart who exited the e-commerce company as part of a deal in which Walmart bought 77 per cent stake in the e-tailer last year.
A joint application by BAC Acquisitions and Essel Finance AMC was considered by the CCI for approval.
The green channel concept -- recommended by the high-level panel that reviewed competition law in August -- allow for an automatic system for speedy approval for certain categories of merger and acquisitions.
Under the framework, green channel approvals can be availed in combinations where there are no horizontal overlaps, no existing or potential vertical relationships and no complementary business activities between the combining parties, or their respective group entities, or involving any entity in which any of the combining partied hold shares or have control.
Merger and acquisitions (M&As) or combinations beyond a certain threshold are required to have mandatory approval from the fair trade regulator.