Revised regulations governing mergers and acquisitions under the Competition Act would be finalised by May 1, the Corporate Affairs Minister, Mr Murli Deora, said on Monday.
“The revised draft of regulations is in the final stages and we expect the notification to be finalised by May 1,” Mr Deora told reporters after a meeting with the Indian Merchants' Chamber (IMC).
He added that the new regulations would be implemented from June 1.
Mr Dhanendra Kumar, Competition Commission of India's Chairman said, “After Mumbai, we will hold meetings in Bangalore and Hyderabad. The combination of regulations will be finalised after duly considering the comments and suggestions received.” Under the Act, companies with a turnover of more than Rs 1,500 crore will have to approach the CCI for approval before merging with another firm.
Also, companies with combined assets of Rs 1,000 crore or more, or a combined turnover of Rs 3,000 crore or more, would require the CCI's nod. The maximum time limit for the CCI to vet mergers has been reduced to 180 days from the earlier 210 days.
Mr Kumar added that the new regulations aim to ease mergers and acquisitions in the country. “The CCI will not stand in the way of mergers and acquisitions unless there is a genuine threat to competition,” he said.