In a bid to assuage corporate India's fears over key aspects of the Competition Act, 2007, the Competition Commission of India has decided to ensure that 90 per cent merger and acquisition proposals put up for its approval are cleared within 60 days. The present timeline is 210 days.

"We are planning to come out with provisions which will address all problems of industry," said CCI's acting chairman and member Vinod Dhall.

However, India Inc is not convinced. "We reiterate our demand for deferring the implementation of the Act," a Confederation of Indian Industry executive said, adding that the chamber wants the requirement of prior intimation for M&As dropped.

Industry has alleged that the Act, passed by Parliament in September but not yet notified, could seriously impact domestic and cross-border M&As, curtail normal business activity and place substantial discretionary powers in the hands of the regulator.

In December last year, the CCI met the representatives of the CII, the Federation of Indian Chambers of Commerce and Industry, the Associated Chamber of Commerce and Industry (Assocham) and the Investment Commission. The chambers have been given two weeks to suggest changes in the Act.

The industry associations expressed dissatisfaction over the criteria for regulating M&As. At present, the Act says that any company with assets of Rs 1,000 crore (Rs 10 billion) or more and a turnover of Rs 3,000 crore (Rs 30 billion) or more has to mandatorily notify details of any "combination" (merger, acquisition or amalgamation) within 30 days of inking the deal.

"However, it will be more realistic to specify an asset or turnover threshold combined with dominance in the market, determined on the basis of market share of the enterprise as the criterion for regulating combinations," a Ficci letter to the ministry of corporate affairs said.

"The definition of 'acquisition' in the Act is very wide and covers acquisition of shares, assets, voting rights, control over management/assets of any enterprises. So a monetary threshold should be defined in the Act," it added.