Group Exemption Letter Template for India

A Group Exemption Letter is a formal regulatory document used in India to request or grant exemption from specific regulatory requirements for a group of related companies. This document is governed by Indian competition law, primarily the Competition Act, 2002, and related regulations. It details the scope of exemption sought, the legal basis for such exemption, and includes comprehensive information about the group structure, relationships between group companies, and compliance commitments. The document serves as a crucial tool for corporate groups operating in India to obtain regulatory relief while ensuring transparency and compliance with applicable laws.

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What is a Group Exemption Letter?

A Group Exemption Letter is a specialized regulatory document used in the Indian legal framework when corporate groups need exemption from certain regulatory requirements. This document is particularly relevant when companies within a group need to undertake activities that might otherwise require separate regulatory approvals or face restrictions under competition law. The letter typically includes detailed information about the group structure, the specific exemptions sought, legal justification, and compliance commitments. It's commonly used in scenarios such as intra-group transactions, restructuring, or collaborative arrangements within the group. The document must comply with Indian regulatory requirements, particularly the Competition Act, 2002, Companies Act, 2013, and other relevant regulations. Group Exemption Letters are crucial for large corporate groups operating in India to streamline their operations while maintaining regulatory compliance.

What sections should be included in a Group Exemption Letter?

1. Letter Header: Official letterhead, date, reference number, and addressing details of the regulatory authority

2. Subject Line: Clear indication that this is a Group Exemption request/grant with relevant reference numbers

3. Group Identity: Details of the parent company and all group companies covered under the exemption

4. Purpose of Exemption: Clear statement of the specific exemption(s) being sought/granted and their statutory basis

5. Background and Rationale: Explanation of the group structure and business reasons necessitating the exemption

6. Legal Basis: Reference to relevant sections of applicable laws and regulations under which exemption is sought

7. Scope of Exemption: Detailed description of activities and transactions covered under the exemption

8. Duration: Specified period for which the exemption is sought/granted

9. Compliance Statement: Declaration of compliance with all other applicable laws and regulations

10. Closing and Signatures: Formal closing, authorized signatory details, and signature block

What sections are optional to include in a Group Exemption Letter?

1. Foreign Investment Details: Required when the group includes foreign entities or involves cross-border transactions

2. Listed Company Compliance: Necessary when any group company is listed on stock exchanges

3. Previous Exemptions: Details of any related exemptions previously granted to the group

4. Undertaking: Specific commitments or conditions accepted by the group companies

5. Impact Analysis: Assessment of the exemption's impact on market competition or stakeholders

What schedules should be included in a Group Exemption Letter?

1. Group Structure Chart: Detailed organizational chart showing relationships between group companies

2. Company Details: Comprehensive information about each group company including registration numbers, addresses, and directors

3. Supporting Documents: List of attached documents such as board resolutions, power of attorney, etc.

4. Compliance Certificates: Recent compliance certificates or regulatory clearances

5. Financial Information: Relevant financial details of group companies if required for the exemption

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

India

Publisher

Genie AI

Document Type

Exemption Letter

Cost

Free to use

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