CCI chief wants ratification of Competition Act sections

The CCI is looking forward to the ratification of sections 5 and 6 of the Competition Act that would give it full control over mergers and acquisitions, Chairman of the Commission Dhanendra Kumar said here today.

Last Updated: Sep 14, 2010, 23:47 PM IST

Hyderabad: The Competition Commission of
India (CCI) is looking forward to the ratification of sections
5 and 6 of the Competition Act that would give it full control
over mergers and acquisitions, Chairman of the Commission
Dhanendra Kumar said here today.

He said the Commission is keen to give its consent for
all mergers and acquisitions within 30 days of filing. But it
will be possible only after the government ratifies the
sections 5 and 6 of the Competition Act.

Under Section 5 of this Act which prescribes turnover
thresholds, an Indian company with a turnover of Rs 3000 crore
cannot acquire another Indian company without approval of the
Competition Commission.

Similarly Section 6 prohibits persons or enterprises
from entering into a combination which causes or is likely to
cause an appreciable adverse effect on competition within the
relevant market in India and such a combination shall be void.

"It is up to the government to ratify it. But these acts
would ensure that an M&A deal does not affect the markets
adversely," he said.

We clear almost 90-95 per cent of cases within a time
period of 30 days. However, for cases where there is scope for
further investigation, the time period would extend. Our
endeavour is to seal them within 180 days, he told media
persons on the sidelines of FICCI national executive committee
meeting.

PTI