Bill to change Competition Act likely in Monsoon session: MCA
Corporate affairs minister Salman Khurshid has 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 in New Delhi on Friday.
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," Khurshid said.
The CCI draws its powers from the Competition Act, passed by Parliament in 2002.