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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Under Section 6(9), which acquisition is outside the operation of Section 6?

Section 6 does not apply to an acquisition by a bank made pursuant to a covenant of a loan agreement. The exclusion covers public financial institutions, foreign portfolio investors, banks and Category I AIFs, but not Category II AIFs or promoters.

  1. AAcquisition by a private promoter group under a shareholders' agreement
  2. BAcquisition by a bank pursuant to a covenant of a loan agreementCorrect
  3. CAcquisition by a listed company through a public announcement
  4. DAcquisition by a Category II alternative investment fund through a covenant

Explanation

Section 6(9) excludes share subscription, financing facility or acquisition by a public financial institution, foreign portfolio investor, bank or Category I AIF pursuant to a covenant of a loan or investment agreement. A Category II AIF is not named, and promoters or listed companies are not covered.

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