FICCI wants M&A rules under new law deferred
Industry body FICCI has demanded that the provisions relating to M&A under the newly passed Competition (Amendment) Act be deferred until such time as the Competition Commission of India (CCI) develops the requisite infrastructure and capabilities...
By TNN |
NEW DELHI: Industry body FICCI has demanded that the provisions relating to M&A under the newly passed Competition (Amendment) Act be deferred until such time as the Competition Commission of India (CCI) develops the requisite infrastructure and capabilities to enforce that.
“We are at a certain stage of development, where M&As would play key roles in helping us attain a scale that can match China’s. The current provisions of the law will kill all such deals, hamper FDI inflow and affect the growth of the economy in general,” said FICCI secretary general Amit Mitra. He said it may take CCI over five years to acquire the requisite experience to implement new legal provisions.
In its letter to the government, FICCI has pointed out that the present Act does not specify any quantitative thresholds for determining dominance of a company, but only lays down qualitative criteria. “This may lead to a lot of subjectivity and open up the possibility of inspector raj,” Mr Mitra said.
FICCI has recommended that the law should provide for a shorter time limit for disposing applications where there is a prima facie view that a combination is not likely to adversely impact competition.
“We are at a certain stage of development, where M&As would play key roles in helping us attain a scale that can match China’s. The current provisions of the law will kill all such deals, hamper FDI inflow and affect the growth of the economy in general,” said FICCI secretary general Amit Mitra. He said it may take CCI over five years to acquire the requisite experience to implement new legal provisions.
In its letter to the government, FICCI has pointed out that the present Act does not specify any quantitative thresholds for determining dominance of a company, but only lays down qualitative criteria. “This may lead to a lot of subjectivity and open up the possibility of inspector raj,” Mr Mitra said.
FICCI has recommended that the law should provide for a shorter time limit for disposing applications where there is a prima facie view that a combination is not likely to adversely impact competition.
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