Section 6 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sub-sections (4) to (9) of Section 6 of the Competition Act, 2002 are wholly replaced by the Competition (Amendment) Act, 2023. They create a short route in which a notice for a qualifying combination, once acknowledged, is deemed to be an approval; they allow certain categories of combinations to be exempted from notice; and they keep the exclusion for acquisitions by lenders and investors under a loan or investment covenant.
As per the consolidated text of the Act published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023. A combination that meets prescribed criteria and is not otherwise exempt may be notified in the specified form and fee; once the Commission acknowledges the notice, the combination is deemed approved under Section 31(1). If the Commission finds that the requirements are not met or the information is materially incorrect or incomplete, the approval is void ab initio. The criteria are "as may be prescribed" and are not in the sources consulted. The 2023 change applies from the date notified for that provision; the notification is not in the sources consulted and should be checked.
What stood in sub-sections (4) and (5) before
For one history line: the consolidated text had a sub-section (4) saying that Section 6 "shall not apply to share subscription or financing facility or 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", and a sub-section (5) requiring that lender or investor to file the details of the acquisition with the Commission "within seven days from the date of the acquisition". An Explanation took the meanings of "foreign institutional investor" and "venture capital fund" from the Income-tax Act, 1961; see our income-tax guides for that Act. The 2023 Act substitutes sub-sections (4) and (5) and the Explanation with the text below.
Section 6(4): the short-form notice
As substituted: "(4) Notwithstanding anything contained in sub-sections (2A) and (3) and section 43A, if a combination fulfils such criteria as may be prescribed and is not otherwise exempted under this Act from the requirement to give notice to the Commission under sub-section (2), then notice for such combination may be given to the Commission in such form and on payment of such fee as may be specified by regulations, disclosing the details of the proposed combination and thereupon a separate notice under sub-section (2) shall not be required to be given for such combination."
Four points follow from the printed words.
- The route is optional ("may be given").
- It depends on criteria "as may be prescribed". The criteria are prescribed by rules under Section 2(n). No rule is in the sources consulted, so we state no criterion.
- The form and fee are "as may be specified by regulations"; our overview of the Combinations Regulations, 2024 deals with the Commission's regulations.
- It operates notwithstanding the standstill in sub-section (2A), the dealing procedure in sub-section (3) and the penalty section 43A.
If you think a transaction might qualify, you will need the criteria and the regulations side by side; a financial and legal due diligence review can establish the facts the criteria will test.
Section 6(5): deemed approval
"Upon filing of a notice under sub-section (4) and acknowledgement thereof by the Commission, the proposed combination shall be deemed to have been approved by the Commission under sub-section (1) of section 31 and no other approval shall be required under sub-section (2) or sub-section (2A)."
Both filing and acknowledgement are needed. The text does not say how long acknowledgement takes or in what manner, and we state none.
Section 6(6): when approval becomes void
"If within the period referred to in sub-section (1) of section 20, the Commission finds that the combination notified under sub-section (4) does not fulfil the requirements specified under that sub-section or the information or declarations provided are materially incorrect or incomplete, the approval under sub-section (5) shall be void ab initio and the Commission may pass such order as it may deem fit: Provided that no such order shall be passed unless the parties to the combination have been given an opportunity of being heard."
The period is the one "referred to in sub-section (1) of section 20"; read that sub-section with the proviso as printed in our article on Section 20. The consequence of an incorrect declaration is serious: the deemed approval is treated as never having existed. The hearing proviso protects the parties from an order without being heard.
Section 6(7): exempted categories
"Notwithstanding anything contained in this section and section 43A, upon fulfilment of such criteria as may be prescribed, certain categories of combinations shall be exempted from the requirement to comply with sub-sections (2), (2A) and (4)." Again the criteria are prescribed and not in the sources consulted. The categories are not listed in the Act; no exemption notification is in the sources consulted.
Section 6(8): saving of earlier rules and regulations
Section 6(8) says that notwithstanding sub-sections (4), (5), (6) and (7): (i) the rules and regulations made under the Act on the matters referred to in those sub-sections as they stood immediately before the commencement of the Competition (Amendment) Act, 2023 and in force at such commencement continue in force "till such time as the rules or regulations, as the case may be, made under this Act"; and (ii) any order passed, fee imposed, combination consummated, resolution passed, direction given or instrument executed or issued or thing done under such rules and regulations that was in force at the commencement continues in force and has effect as if done under the Act. Clause (i) reads as printed in the gazette and ends without a closing verb after "made under this Act"; we have not completed the sentence.
Section 6(9): the lender and investor carve-out
"The provisions of this section shall not apply to share subscription or financing facility or any acquisition, by a public financial institution, foreign portfolio investor, bank or Category I alternative investment fund, pursuant to any covenant of a loan agreement or investment agreement."
The Explanation to Section 6, as substituted, gives two meanings: "Category I alternative investment fund" has the meaning in the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992; and "foreign portfolio investor" has the meaning in the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the same Act. These references are quoted as printed; check the current law for the corresponding provision. Our posts on AIF regulations and FPI regulations explain those regimes.
Note what changed here. The former sub-section (5) required the lender or investor to file the details of the acquisition within seven days. The substituted sub-section (9) contains no filing requirement. "Public financial institution" is defined in Section 2(p); see our article on Section 2 definitions.
What the 2023 Amendment Act changed in Section 6(4) to (9)
| Provision | Before (consolidated text) | After (2023 Act) |
|---|---|---|
| (4) | Section did not apply to certain lender or investor acquisitions | Short-form notice route for combinations meeting prescribed criteria; notwithstanding (2A), (3) and Section 43A |
| (5) | Lender or investor to file details within seven days | Deemed approval under Section 31(1) on filing and acknowledgement |
| (6) | None | Void ab initio if requirements are not met or information is materially incorrect or incomplete; hearing proviso |
| (7) | None | Exempted categories on prescribed criteria |
| (8) | None | Saving of earlier rules, regulations, orders and fees |
| (9) | None (the lender carve-out was in (4)) | Carve-out for public financial institution, foreign portfolio investor, bank or Category I alternative investment fund |
| Explanation | Foreign institutional investor and venture capital fund, by reference to the Income-tax Act, 1961 | Category I alternative investment fund and foreign portfolio investor, by reference to SEBI regulations |
| Terms | "foreign institutional investor", "venture capital fund" | "foreign portfolio investor", "Category I alternative investment fund" |
The notice itself, and the standstill, are explained in our article on Section 6(1) to (3). The wider guide to regulation of combinations and the post on CCI approval for mergers and acquisitions give an overview.
Need help deciding which notice route fits a deal?
The short-form route, the exemptions and the lender carve-out each depend on criteria and documents outside the Act. Our team can map your transaction against Section 6 as part of financial and legal due diligence, and prepare the facts needed for any notice.
Key takeaways
- Sub-sections (4) to (9) of Section 6 and the Explanation are substituted by the 2023 Act.
- A combination meeting prescribed criteria may use a short-form notice; filing and acknowledgement lead to deemed approval under Section 31(1).
- The approval is void ab initio if the requirements are not met or the information is materially incorrect or incomplete, after a hearing.
- Exempt categories depend on prescribed criteria that are not in the sources consulted.
- The lender and investor carve-out remains, now naming foreign portfolio investors and Category I alternative investment funds, without a seven-day filing.
Read next
- Notice of combination to CCI and the standstill period
- Open offers and stock exchange acquisitions under Section 6A
- Orders on combinations and deemed approval under Section 31
- Competition Act 2023 amendment: key changes
Disclaimer: Based on the consolidated text of the Competition Act, 2002 published by the Competition Commission of India (amendments shown up to the Finance Act, 2017), read with the Competition (Amendment) Act, 2023 as published in the Gazette of India on 11 April 2023, and on the regulations and guidelines of the Commission as notified in 2024, as consulted on 2 October 2026. Commencement notifications, notified thresholds, rules and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.