Competition watchdog CCI may take only 30 days to clear high-voltage corporate mergers and acquisitions, a move that will address one of India Inc's major contentions. In the draft regulations posted on its website for public comments, the Competition Commission of India (CCI) has provided for a clause in Sections 5 and 6 of the Competition Act, 2002, wherein the body would take a prima facie view on proposed combinations within a month of filing by companies.
"We should be able to clear about 90-95 per cent of the merger proposals within 30 days, only the rest will be sent for detailed scrutiny. In those cases too, clearances would be accorded within 180 days," CCI Chairman Dhanendra Kumar said. Industry has been raising concern over the earlier 210 days, originally proposed by the CCI for provisions in soon-to-be notified Sections 5 and 6 of the Act.
Besides, only those proposals would need CCI's approval which have combined assets of Rs 1,000 crore or more, or combined turnover of Rs 3,000 crore (Rs 30 billion) or more. Also, the target company's net assets have to be a minimum of Rs 200 crore (Rs 2 billion) or turnover of Rs 600 crore (Rs 6 billion) for a CCI intervention, as per the draft merger rules.
"We are fully geared up to undertake mergers and acquisition expeditiously. Our endeavour would be to ensure that the growth of Indian economy and investments are not in any way retarded...and at the same time the interests of Indian consumers are safeguarded by ensuring there is no appreciable adverse effect on competition in the market," Kumar said.
The Commission became fully functional in 2009, with the appointment of a chairman and six members. At present, it has the power to check anti-competitive agreements and abuse of dominant position, drawn from Sections 3 and 4 of the Competition Act, 2002.
