'Exclusion of bank mergers from CCI purview not good'
New Delhi, Dec 19, 2011:
Competition watchdog CCI on Monday said the proposed exclusion of bank mergers from its purview is “not good” as other sectors may also claim such exemptions.
“Such exclusions or exemptions are not good. Because when you have a competition regulator, merger issues should come to only that regulator,” Competition Commission of India (CCI) Chairman Mr Ashok Chawla said on the sidelines of an Assocham event here.
A Parliamentary Standing Committee, in its report on the Banking Laws (Amendment) Bill, 2011, tabled in the Lok Sabha earlier this week, has supported the government’s proposal to keep bank mergers outside the purview of CCI temporarily but with certain caveats.
While it supports the government’s proposal to keep bank mergers outside CCI’s purview, it recommended that this exception should be considered as a special case.
Sections 5 and 6 of the Competition Act, 2002, empower CCI to approve high voltage mergers and acquisitions.
Competition watchdog CCI on Monday said the proposed exclusion of bank mergers from its purview is “not good” as other sectors may also claim such exemptions.
“Such exclusions or exemptions are not good. Because when you have a competition regulator, merger issues should come to only that regulator,” Competition Commission of India (CCI) Chairman Mr Ashok Chawla said on the sidelines of an Assocham event here.
A Parliamentary Standing Committee, in its report on the Banking Laws (Amendment) Bill, 2011, tabled in the Lok Sabha earlier this week, has supported the government’s proposal to keep bank mergers outside the purview of CCI temporarily but with certain caveats.
While it supports the government’s proposal to keep bank mergers outside CCI’s purview, it recommended that this exception should be considered as a special case.
Sections 5 and 6 of the Competition Act, 2002, empower CCI to approve high voltage mergers and acquisitions.