Competition watchdog CCI has approved the proposed merger of India Securities (ISL) into Essar Capital (ECL), it said in an order.
"Considering the facts on record and details provided in the notice and the assessment of the proposed combination, the Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India and, therefore, the Commission hereby approves the proposed combination," the CCI order said.
ISL and ECL had filed a joint notice to the Competition Commission relating to a proposed combination wherein ISL would be merged into ECL, pursuant to scheme of amalgamation under the Companies Act.
ECL is engaged in investment activities and also provides financial advisory and consultancy services.
ISL, in which 95.95% equity shares are held by ECL, is also engaged in investment activities and provides financial advisory services and business start-up consultancy services.
"It is observed that ISL and ECL are engaged in similar business activities and the ultimate control over the activities of ISL, before and after the proposed combination, would continue to be exercised by ECL. The proposed combination is not likely to have any adverse competition concern in India," the order said.