The Centre on Friday launched in Lok Sabha the a lot awaited Competitors regulation modification Invoice that, amongst different issues, seeks to broaden the scope of anti-competitive agreements, pace up approvals of mergers and acquisitions (M&As) and cut back litigations.
The Competitors (modification) Invoice 2022 was launched within the decrease home by Rao Inderjit Singh, Minister of State for Company Affairs.
The Invoice gives for discount of time-limit for approval of mixtures from 210 days to 150 days and forming a prima facie opinion by the Fee inside 20 days for expeditious approval of mixtures.
Transaction worth standards
It additionally gives for “worth of transaction” as one other standards for notifying mixtures to the Fee. Firms seeking to purchase management, shares, voting rights should search the Competitors Fee’s approval if the worth of the transaction exceeds ₹ 2,000 crore.
Additionally the Invoice proposes introduction of limitation interval of three years for submitting data on anti-competitive agreements and abuse of dominant place earlier than the Fee.
Scale back litigation
The Invoice additionally seeks to introduce Settlement and Dedication framework to cut back litigations. It proposes to incentivise events in an ongoing cartel investigation by way of lesser penalty to reveal data relating to different cartels. The Invoice additionally seeks to substitute a provision which gives for penalty as much as ₹ 1 crore or imprisonment as much as three years or each in case of contravention of any order of the Nationwide Firm Legislation Appellate Tribunal with provision for contempt;
Revealed on
August 05, 2022