Global funds cautious as CCI raps Goldman and Carlyle

Global funds are adopting an extra cautious approach towards combination applications filed before the Competition Commission of India (CCI) as two global funds – Goldman Sachs and Carlyle – have received a rap from the anti-trust regulator. At the core of the matter are the merger and acquisition (M&A) transactions involving purchase of smaller stakes in companies by Alternative Investment Funds (AIFs). “Recent CCI enforcement highlights strict scrutiny of minority investments and investor protection rights, particularly where such rights may confer material influence. Investors must closely assess whether information, access or governance rights, such as access to board minutes or commercially sensitive information as these could trigger a mandatory filing notwithstanding a low shareholding,” said Vaibhav Choukse, partner, JSA Advocates and Solicitors. Read more