New Delhi, Jan 7 (IANS): The Competition Commission of India (CCI) has approved the acquisition of upto 2.39 per cent stake in Star Health and Allied Insurance Company by ROC Star Investment Trust under the green channel mode.

Green channel is an automatic approval system, whereby a combination is deemed to have been approved by the CCI upon receiving the filing of the notice for the combination by the concerned parties. Officials with the anti-trust body said that it is this combination is the first filing and approval under the green channel route.

"The proposed transaction entails acquisition of upto approximately 2.39 per cent of the equity share capital of Star Health from Snowdrop Capital PTE Limited. Post the consummation of the proposed combination, ROC will have certain rights including non-control conferring veto rights in Star Health," said the summary of the combination on the CCI website.

"The proposed combination is in the nature of an acquisition under Section 5(a) of the Competition Act, 2002," it added.

Star Health is a general insurer and is currently also engaged in the business of health insurance and deals in personal accident, mediclaim and overseas travel insurance as well. The company operates its business of selling policies through licensed intermediaries such as corporate agents, brokers and insurance agents in India.

ROC Star Investment is an investment vehicle managed by ROC Capital Pty Limited, an Australian investment management company.