COMPETITION AMENDMENT BILL, 2007

The Ministry of Corporate Affairs is proposing a penalty for mega corporations failing to inform the competition regulator about their consolidated plans may have to pay hefty price. The penalty would be equal to 1% of the turnover or assets of the combined entity, whichever is higher. Companies, however, would get more time to inform the Competition Commission of India of their board’s decision regarding merger or an acquisition that has been signed. As per the Competition Amendment Bill, 2007, corporate would get 30 days for this, compared to seven days prescribed in the existing law. The ministry also wants to bring about certainty on how much time Commission could take to clear deal. This would build confidence among corporate entities to go ahead with Merger & Acquisitions.