India Inc to get hearing ahead of introduction of new competition regime
14 Apr 2011
According to corporate affairs minister, Murli Deora, views of the India Inc would be heard first before the Competition Commission finalises the regulatory provisions in the new competition regime.
''We will be holding consultations with the industry in Mumbai, Bangalore, Hyderabad etc, to get their feedback on the merger regulations. We don't want industry to say that they have not been allowed to give their views. If someone has a better alternative, we will change,'' he said.
Deora's statement comes ahead of his scheduled meeting with industry representatives and other stakeholders on 25 April in Mumbai.
Meanwhile, Competition Commission of India (CCI) is already working with corporate law experts to draw a ''more acceptable'' M&A regulation. Late last week, the corporate affairs secretary, DK Mittal, and the CCI chairman, Dhanendra Kumar, met industry representatives and competition law experts to elicit feedback on the draft merger regulations.
Further the minister assured the industry that the new competition regime would not disrupt the activities of corporate India.
From 1 June, all large companies would be required to seek prior approval of the CCI for proceeding with mergers and acquisitions. Under sections 5 and 6 of the Competition Act, 2002 the commission has been suitably empowered to do so.