The Government may take at least six months more to notify the crucial provisions of the Competition Act that would empower the Competition Commission of India (CCI) to scrutinise high value mergers and acquisitions.
**At present, the CCI does not have enough staff and expertise to handle mergers and acquisition issues. It is only when the hiring process is complete, the Government will notify the provisions ... and that may take six months or more, a senior Corpor ate Affairs Ministry official said.
Although the Government has operationalised several provisions of the Competition Act, it has yet notify Sections 5 and 6 which mandate companies beyond a certain turnover threshold to seek the CCIs go ahead.
The Government is holding consultations with the industry and other stakeholders on sections relating to mergers and acquisitions, the official said, adding these are crucial provisions and need extensive deliberations.
After notification of the Sections 5 and 6 of the Act, all mergers which would increase the combined assets of the merging entities to more than Rs 1,000 crore or raise the turnover to Rs 3,000 crore, would require the CCIs approval. PTI