Home / Knowledge / News / Textiles / CCI to tweak regulations to ease M&A process
CCI to tweak regulations to ease M&A process
22
Dec '15
Fair trade regulator, Competition Commission of India (CCI) will soon come out with changes in regulations to ease the process of mergers and acquisitions (M&As), CCI chairman Ashok Chawla said at acording to a press release by Assocham.

“We are actively and quickly reviewing regulations, we have called for comments from some of the law firms which have been filing with us and I think before this year ends, which is in the next few days and 2016 starts, we will make further changes on things which have been bothering companies in terms of authorised signatories, invalidation of notices, which has become a matter of concern,” said Chawla while inaugurating 4th National Summit on Mergers & Acquisitions organised by Assocham.

“The idea is to make the regulation and process as user-friendly as possible,” said Chawla. “These are minor nuts and bolts issues but they are very important from the point of view of the stakeholders.

So we are taking a look at these and we will be in a position to finalise the changes whatever they are before the end of the month.”

Expressing concerns over time taken in approval of cases due to rise in number of filings and dearth of professionals, Chawla said, “We want that majority of cases which are simple should be cleared expeditiously, so there will be in 2016 a clear southward direction in terms of time taken in which cases are approved.”

“The discipline is that we should clear it in 30 working days, but if you take the total time taken without taking into account clock stop and others, average time taken is about 50-60 days, which according to the Commission is on a higher side, we want to reduce it and try and bring back majority of the cases to within actually 30 days,” said the CCI chief.

He also advised the industry and corporates, particularly the multinational corporations (MNCs) to use the route of e-filing which was recently started to facilitate industry's interaction with the Commission.

Talking about the M&A regime that has operated during the course of past 4.5 years, Chawla informed that CCI had approved 322 cases out of the total 355 cases that have come up during June 2011 and December 2015 and the rest are pending.

He said that in less than even one per cent of the 355 cases, the CCI felt the need to go into detailed scrutiny of the proposal.

He also said that number of filings have been going up steadily. From 45 in 2013 it had almost doubled to 88 in 2014 and in 2015, till a few days ago it was 117 already. This year, October saw the highest number of filings at 21.

He said that almost 98 per cent of cases are relatively simpler cases of routine consolidation, sale of shares, intra-group restructuring and others and it needs to be encouraged so that industry and its various sectors reach a scale and size which are optimum from the economic efficiency point of view.

“So basically the increase is a proxy for improved business climate and the need for consolidation, it will also help in an important way in the overall march towards greater competitiveness of the economy which is extremely important for 'Make in India,' programme and policy which the government is pursuing,” said Chawla. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Stefano Gallucci (left), CEO, Santex Rimar Group, and Tamer Hasbay, President, Has Group; Courtesy: Santex Rimar

Textiles | On 24th Jan 2017

Santex Rimar to market all Has products globally

Italy based Santex Rimar Group has signed an agreement with Turkey...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Johan Berlin
InvestKonsult Sweden AB

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Igor Chapurin
Chapurin

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


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