Question- Which of the following agency is responsible for regulation of merger and acquisition rules in India?
(a)Chief Vigilance Commission
(b)Competition Commission of India
(c)Department of Industrial Policy and Promotion
(d)Department of Economic Affairs
- Anti-trust watch dog Competition Commission of India (CCI) has amended its regulations in order to make it easier for corporations to secure approvals for mergers and acquisition (M&A).
- Mergers and Acquisition (M&A) Law are the regulatory laws affecting the purchase of one company by another (an acquisition), or the blending of two companies into a new entity (a merger).
- According to amended M&A regulations, businesses involved in the deal can “submit remedies voluntarily in response to the notice issued under Section 29(1) of the Act”.
- Through this amendment merging entities can suggest possible alteration to CCI over deal.
- Prior to this, suggestions of alterations were permissible only after the CCI proposes changes.
- This move taken by CCI will enable merging parties to address the deficiencies without any fear of penalty.
- It will expedite the speed of merger & acquisition and make the process smoother, efficient, corporate and business friendly.
Competition Commission of India
- The Competition Commission of India was established on 14th October, 2003 through an act of parliament, The Competition Act, 2002. It became fully functional in May 2009 with Dhanendra Kumaras its first Chairman
- CCI consists of a Chairperson and 6 Members appointed by the Central Government. Sudhir Mital is the current Chairperson of the CCI.
- The objective of the Act is to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India.
- It works with the mission of professionalism, transparency, resolve and wisdom in enforcement of its objectives.