The Competition Commission of India (CCI) has imposed a penalty of INR4 million (approximately USD46,174) on Goldman Sachs (India) Alternative Investment Management (AIM) for failing to notify the regulator of a 3.81% stake acquisition in Biocon Biologics. The CCI deemed the investment to be non-ordinary, citing that Goldman Sachs AIM was granted access to confidential information, including meeting minutes, financial data, and proprietary technology, which is not typically afforded to ordinary shareholders. This implied a strategic investment, rather than a routine one.
The CCI rejected Goldman Sachs AIM’s claim that the investment was part of its ordinary course of business, stating that any transaction with the intent of staying invested for a longer period and involving the acquisition of additional rights (beyond those of an ordinary shareholder) cannot be considered ordinary business. The CCI concluded that Goldman Sachs AIM had violated Section 6(2) of the Competition Act, 2002, and accordingly imposed the penalty.
Biocon Biologics, a Bengaluru-based company, develops innovative biological medicines to improve global health outcomes, while Goldman Sachs AIM is the investment manager for a leading alternative investment fund.