CCI New Delhi/IBNS: Competition Commission of India (CCI)'s chairperson Ravneet Kaur on Monday said that the country's apex national competition regulator will soon come out with a new set of merger regulations, giving effect to competition law amendments enacted last year.
Ravneet Kaur said the CCI has been engaged in the last one year in preparing a regulatory framework under the Competition (Amendment) Act, 2023, which brought in global best practices for dealing with the emerging challenges to competition in the market.
According to reports, the new regulations issued include those relating to negotiated settlements with businesses on anti-competitive practices, regulating mergers and acquisitions based on the deal value and an expanded scheme on leniency meant to encourage cartels to come clean.
"The next in the pipeline is merger regulations," Kaur said, adding that CCI is now in the process of notifying the new merger control regulations.
Mint reported, quoting its sources, that the proposed regulations will clarify how to assess the value of a transaction for the purpose of deciding whether it requires approval from CCI or not.
The new regulations will also explain how CCI will speed up merger regulation by cutting down the maximum allowed time for a decision on a transaction from 210 days to 150 days, a provision that was also introduced in the law in 2023, Mint reported, citing its sources in the CCI.
CCI's new set of regulations are expected after the model code of conduct (MCC) is lifted after the Lok Sabha polls as the government has to notify certain provisions of the amended law, which says CCI approval is required for any transaction if the value of it is more than Rs 2,000 crore, even if the deal does not otherwise meet the asset and sales threshold for merger regulations, and CCI has to make a first impression of a deal within 30 days, failing which it will be deemed to be approved.
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