Sun Pharmaceuticals' $4-billion (Rs 24,000-crore) acquisition of Ranbaxy Laboratories will be scrutinised by two regulators: the Competition Commission of India (CCI) and the Securities and Exchange Board of India (Sebi).
Sun will have to apply for CCI approval within 30 days. "Let them file. We will examine it once it comes to us," Ashok Chawla, chairman, CCI, told HT.
Sebi, too, is looking into the 30% rise in the Ranbaxy share price in the run-up to the deal. On Wednesday, a senior Sebi official said the market regulator would ask BSE and NSE for data on trading in Ranbaxy shares in the run up to the April 7 deal.
Sun Pharma denied any wrong doing. "At Sun Pharma, we hold ourselves to the highest standards of corporate governance and business ethics. The purchase of shares of Ranbaxy Lab by Silverstreet Developers (a Sun subsidiary) does not violate insider trading rules," a company spokesperson said.