Loss-making bank M&As exempt from CCI purview
25 Feb 2013 5:31 AM IST
The government has exempted merger and takeover plans for loss-making and failing banks from the purview of fair trade regulator Competition Commission of India (CCI) for a period of five years.
Mergers & Acquisitions (M&As) happening in the country have to get clearance from the Competition Commission of India, 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 Competition Commission of India.
The exemption would be for a period of five years, according to the notification issued in January. The Finance Ministry had sought an exemption for mergers and acquisitions of loss-making and failing banks.
The Competition Commission of India comes under the administrative control of the Ministry of Corporate Affairs (MCA).
In December, Finance Minister P Chidambaram had categorically stated in Parliament that the Reserve Bank of India (RBI), the country’s central bank, would regulate the banking sector while Competition Commission of India would look into competition practices in the sector.
Mergers & Acquisitions (M&As) happening in the country have to get clearance from the Competition Commission of India, 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 Competition Commission of India.
The exemption would be for a period of five years, according to the notification issued in January. The Finance Ministry had sought an exemption for mergers and acquisitions of loss-making and failing banks.
The Competition Commission of India comes under the administrative control of the Ministry of Corporate Affairs (MCA).
In December, Finance Minister P Chidambaram had categorically stated in Parliament that the Reserve Bank of India (RBI), the country’s central bank, would regulate the banking sector while Competition Commission of India would look into competition practices in the sector.
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