New Delhi: The Competition Act is set for a major revamp with the government on Sunday setting up a panel to suggest ways of making the anti-trust law in sync with the changing business environment and to adopt global best practices.
The 10-member panel chaired by Injeti Srinivas, secretary, corporate affairs ministry, will pay special attention to merger guidelines and cross-border competition issues, according to a statement from the corporate affairs ministry.
The review of the competition law comes at a time when the Indian economy is witnessing a series of acquisition of bankrupt companies as part of court-monitored resolution of stressed assets.
This calls for closer alignment of the bankruptcy resolution and competition regulation regimes. The government has already amended the Insolvency and Bankruptcy Code of 2016 earlier this year to streamline procedures under the two regulatory regimes to ensure that resolution of stressed companies do not exceed the 270-day deadline specified in the Code.
The panel, which has Insolvency and Bankruptcy Board of India (IBBI) Chairman MS Sahoo as one of its members, will “study other regulatory regimes/ institutional mechanisms/ government policies which overlap with the Competition Act,” according to the statement.
The panel will also look into other matters related to competition it finds necessary.
In the last nine years, the Indian economy has grown in size to be among the top five economies in the world and is poised to grow further. “In this context, it is essential that the competition law is strengthened, and re-calibrated to promote best practices, which result in the citizens of this country achieving their aspirations and value for money,” according to the statement.
The Competition Act lays the ground rules for fair trade practices and prohibits abuse of dominance, bid rigging, cartelisation, predatory pricing and mergers of companies that have an appreciable adverse effect on competition. Wherever mergers of companies are found to be affecting competition, the Competition Commission of India (CCI) suggests modifications to transactions.
The panel will give it’s report within three months.