New Delhi: The government has exempted merger and takeover plans for loss-making and failing banks from the purview of fair trade regulator Competition Commission for a period of five years.
Mergers & Acquisitions (M&As) happening in the country have to get clearance from the Competition Commission of India (CCI), which keeps a tab on anti-competitive practices across sectors.
The Corporate Affairs Ministry in a notification has said that loss making and failing banks have been exempted from the purview of the CCI.
The exemption would be for a period of five years, according to the notification issued in January.
Finance Ministry had sought an exemption for mergers and acquisitions of loss-making and failing banks.
CCI comes under the administrative control of the Corporate Affairs Ministry.
In December, Finance Minister P Chidambaram had said in the Parliament that Reserve Bank of India (RBI) would regulate the banking sector while CCI would look into competition practices in the banking sector.
He was speaking after presenting the Banking Laws (Amendment) Bill, 2011, in the Lok Sabha in December.
First Published: Sunday, February 24, 2013, 13:40