CCI fines Investcorp India Asset Managers Rs 20 lakh

The Indian Competition Commission (ICC) imposed a fine of Rs 20 lakh on Investcorp India Asset Managers Pvt Ltd for failing to inform the regulator of its acquisition of the real estate fund management and capital fund management business. investment of IDFC Alternatives Ltd.

The transaction was based on a discount sale for a lump sum consideration and was finalized in February 2019.

For the transaction, Investcorp India was required to give notice to the fair trade regulator.

However, he did not.

” Commission concludes that the acquisition of the real estate fund management and private equity fund management business of IDFC Alternatives by Investcorp India was a combination … and that the de minimis exemption was not available in this regard.

“As a result, Investcorp India, as an acquirer, has not notified the Commission,” the regulator said.

Regarding Investcorp India’s assertion that the investment manager does not have any ownership rights or control over the assets of any of the funds, ICC said that Investcorp India has become the manager of the capital funds. -risk and alternative investment funds concerned.

Although the beneficial ownership of these categories of funds rests with the unitholders, control of the operations and management of the fund is vested in the investment manager.

The Commission noted that the acquisition of control is one form of combination and therefore the acquirer must give notice in accordance with applicable laws.

“Said legal requirement is not ruled out simply because the beneficial interest is vested in one or more persons other than the purchaser,” said the ICC.

Investcorp India is required to pay the penalty within 60 days from the date of receipt of such order, in accordance with an order dated December 17, 2021.

IDFC Alternatives was engaged in investment management and offered portfolio and risk management, investment banking and advisory services, the order said.

In addition, the main business activities of Investcorp India were investment management services and the management, operation and supervision of investment vehicles, including alternative investment funds and venture capital funds.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Michael J. Birnbaum