The Competition Commission of India (CCI) has imposed a penalty of INR4 million (USD46,174) on Goldman Sachs (India) Alternative Investment Management for failing to notify the regulator of buying 3.81% in Biocon Biologics after finding the investment was not ordinary.
As part of this investment, Goldman Sachs AIM was granted access to the minutes of meetings of the board, committee or shareholders.
This, in the opinion of the CCI, would not have been granted to an ordinary shareholder, as it could include strategic plans, financial data, proprietary technology, business forecasts and other confidential matters. In addition, the CCI found that this access and rights it gained on reserve matters indicated that the transaction was strategic and not ordinary, or solely an investment.
The CCI rejected Goldman Sachs AIM’s claim that the investment was an ordinary course of business, finding it failed the “frequent, routine and usual” test.
“Any transaction which is made with the intent of remaining invested for a relatively longer period and involves the acquisition of any additional rights (compared to the rights of an ordinary shareholder) cannot be considered as in the ordinary course of business,” the CCI said.
As a result, Goldman Sachs AIM had violated section 6(2) of the Competition Act, 2002, and the CCI imposed a penalty of INR4 million.
Biocon Biologics, headquartered in Bengaluru, works to provide patients access to affordable biologics and enable health equity worldwide. It has a unique portfolio of monoclonal antibodies, insulins and conjugated recombinant proteins for diabetes, cancer, autoimmune diseases, serious eye conditions and bone health.
Biosimilars are biological medical products that are similar, but not identical, versions of registered biological medicines.
Goldman Sachs AIM is the investment manager for Goldman Sachs AIF Scheme I, an alternative investment fund.
