Bill to change Competition Act likely in Monsoon session: MCA
Salman Khurshid today said the Competition Act amendment bill, seeking to invest the competition watchdog CCI with powers to vet big-ticket takeovers, is likely to be tabled in the Monsoon session.
New Delhi: Corporate Affairs Minister
Salman Khurshid today said the Competition Act amendment
bill, seeking to invest the competition watchdog CCI with
powers to vet big-ticket takeovers, is likely to be tabled in
the Monsoon session.
"(We) hope to table the Bill to incorporate Sections 5
and 6 of the Competition Act for Parliamentary approval in the
Monsoon session," Khurshid said here.
The competition regulations have been revised after much
deliberations with the industry which had raised concerns on
issues like the time-period for vetting mergers and threshold
limit of companies that require the go-ahead.
Although the Competition Commission of India (CCI)
became fully functional last July with the notification of the
two Sections which pertain to abuse of dominant position and
anti-competitive agreement by companies, Sections 5 and 6 are
yet to be notified.
"It is a right move to bring the amendments through
Parliament, instead of bringing it through an Ordinance. This
is a better process. Let there be Parliamentary consensus,"
said competition lawyer with Luthra & Luthra GR Bhatia.
According to sources, the draft regulations, which are
pending before the law ministry, provides for clearing M&A
proposals in 180 days, as against 210 days specified earlier.
The ministry is also learnt to have fixed the turnover
and assets threshold of the target enterprise at Rs 750 crore
and Rs 250 crore, respectively.
"Convergence of the Takeover Code and Sections 5 and 6 of
the CCI Act will smoothen the regime and platform for
companies as far as M&As and takeovers are concerned,"
The CCI draws its powers from the Competition Act, passed
by Parliament in 2002.