Centre unveils Green Channel Rules to speed up approvals for business deals

The central government has introduced the new Draft Commission of India (Green Channel) Rules, 2024, to speed up approvals for certain business deals.

It is a big step forward towards ‘ease of doing business’ as it has made the criteria for filing under the green channel quite wide and comfortable, according to KK Sharma, partner at Singhania & Co.

These rules outline criteria for automatic approval upon filing a form, without needing formal approval from the commission.

For a deal to qualify, the parties shouldn’t compete directly by offering similar products or services. Also, they shouldn’t be at different production stages or have products that complement each other.

The primary objective of the rules is to ensure quicker approvals for combinations that are unlikely to harm competition. By streamlining the approval process, the CCI aims to facilitate faster decision-making while upholding fair competition in the marketplace.

Under the Green Channel route, a combination is deemed approved on the day the form is filed if it meets the specified criteria. NDTV Profit