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Merger and acquisitions (M&A) in the banking sector will be exempted from the purview of competition watchdog CCI if the Banking (Laws) Amendment bill is passed,a top government official said today.
“If the Banking (Laws) Amendment Bill,2011 is passed,then mergers and acquisitions in the banking sector will be taken out of the purview of Competition Commission of India (CCI),” Corporate Affairs Secretary Naved Masood told reporters here on the sidelines of an event.
He added that under the Sections (3) and (4) of the Competition Act,which opposes the anti-competition practices and abuse of dominant position,the Commission would continue to look at these aspects of the banking sector.
When asked about conflicts between CCI and other sectoral regulators,Corporate Affairs Minister Veerappa Moily,who was also present at the event,said,”CCI will not encroach upon other sectoral regulators’ jurisdiction. It is only
complementing them. CCI is not in conflict with any one. Its role is to foster competition”.
Replying to a query on CCI’s conflict with telecom regulator Trai,Masood said discussions between both the regulators are on.
Trai works on facilitating regulations that encourage competition in the telecom sector,while CCI works on implementing those regulations,he said.
The Competition (amendment) bill,2011,which sought to revise the threshold limits for companies to seek CCI’s go ahead,among other things,was referred to the group of ministers as a consensus could not be reached on the Commission’s jurisdiction.
Several ministries,like finance and telecom,have been asking blanket exemption from the CCI’s purview for its respective sectors.
The CCI,which became fully functional in May 2009,draws its power from the Competition Act 2002 to check anti-competitive practices and abuse of dominant market positions.
