Home / Knowledge / News / FICCI apprehensive over Competition Act, 2002
FICCI apprehensive over Competition Act, 2002
Feb '08
FICCI has expressed concern over the provisions regulating mergers and acquisitions in the new Competition Act, 2002, as there are fears that the proposed regulations would impose curbs and slow down combinations.

Consequently, FICCI apprehends that such provisions that would blunt the competitiveness of Indian industry, especially at a time when industry is in a slowdown phase with growth in December 2007 dipping to 7.6 per cent compared with 13.4 per cent in December 2006.

Feedback received by FICCI from chartered accountants, chief financial officers, corporate law experts shows that some of the inhibiting regulations relate to definition of combinations under Section 5 of the Act, under which the turnover thresholds are biased against Indian companies.

For instance, an Indian company with turnover of Rs. 3000 crore cannot acquire another Indian company without prior notification and approval of the Competition Commission.

On the other hand, a foreign company with turnover outside India of more than USD 1.5 billion (or in excess of Rs. 4500 crore) may acquire a company in India with sales just short of Rs. 1500 crore without any notification to (or approval of) the Competition Commission being required.

FICCI has pointed out that the definition of “combinations” is unnecessarily repetitive and gives rise to confusion. For example, Sections 5(b) and 5(c) are subsumed under Section 5(a)But, from a competition law perspective the only pertinent provision is Section 5(a), which regulates an acquisition of “control”.

Must ReadView All

Courtesy: Alibaba

Apparel/Garments | On 21st Feb 2017

Alibaba announces retail partnership with Bailian Group

Chinese e-commerce giant Alibaba Group has made another move in its...

Textiles | On 21st Feb 2017

GST to reduce documentation for logistics firms: CBRE

The Goods and Services Tax (GST) is likely to result in a reduction...

Apparel/Garments | On 21st Feb 2017

Govt may free up retail FDI for domestic goods

Government may remove restrictions on retailers like Walmart and...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search