Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: TDS :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: cpt :: VAT Audit :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment
 
 
« Mergers and Acquisitions »
 The 12 digital health mergers and acquisitions of Q1 2017
  Deals of the day-Mergers and acquisitions Apr 19, 2017
 Deals of the day-Mergers and acquisitions Apr 19, 2017
 Foreign investors giving M&A deals in India’s renewable energy sector a miss
 Mergers and acquisitions are getting riskier as insurance claims rise
 The Financial Times started a mergers and acquisitions newsletter for its highest-paying subscribers
 Milton Barbarosh Offering Assistance on Mergers & Acquisitions
 Deals of the day-Mergers and acquisitions 15 April 2017
 Traders say mergers and acquisitions could bring boost to biotech stocks
 Accounting a new disruptor in mergers and acquisition strategies
 Bridging the Valuation Gap in Mergers and Acquisitions

Competition act to cover forced bank mergers: MCA
November, 21st 2013

The corporate affairs ministry has turned down the Reserve Bank of India's request for a blanket exemption from the Competition Act for forced mergers of distressed banks initiated by RBI. The central bank had sought exemption under Sections 5 and 6 of the Competition Act, which requires prior approval from the government before a merger.

In January this year, the government had issued a notification exempting failing banks from the applicability of the provisions relating to the regulation of mergers for five years under section 54 of the Competition Act. This was applicable to bank mergers where section 45 of the Banking Regulation Act, 1949 was invoked by the RBI.

The central bank had invoked the section in the forced merger of Global Trust Bank (GTB) with Oriental Bank of Commerce and other mergers. The same provisions were invoked by the RBI when the Satara-based United Western Bank was amalgamated with IDBI Bank and when Kerala-based Nedungadi Bank was merged with Punjab National Bank.

RBI's forced mergers of banks have been the equivalent of top-secret commando operations in the banking sector. In the case of Global Trust Bank, the bank placed a moratorium on a Friday. The moratorium included a freeze on the bank's management from dealing with any assets and limited depositors from withdrawing funds. On the following Monday, Oriental Bank of Commerce was named as the acquirer. According to bankers, a forced merger needs secrecy because if word gets out, promoters have an opportunity to deal with the shares or assets.

The January notification giving exemption to failing banks was issued following the decision of a group of ministers that a specific proposal for an exemption could be put up to the ministry of corporate affairs if a government ministry felt it was necessary to provide such an exemption.

According to the Ministry of Corporate Affairs, there should not be any general carve-out for any sector from the purview of the competition act. Moreover, the job of the competition commission was regulation of mergers, compulsory or otherwise, the ministry said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions