Finance Ministry has asked Corporate Affairs Ministry to exempt ailing insurance and banking firms from the scope of Competition Act
New Delhi: The Finance Ministry has asked Corporate Affairs Ministry to exempt ailing insurance and banking firms from the scope of Competition Act, Parliament was informed, reports PTI.
The Competition Act, 2002 does not provide exemption to any sector, including banking, from its ambit.
"The Department of Financial Services has approached this Ministry (Corporate Affairs) for granting exemption to loss making and failing organisations in the insurance sector and the banking sector from the purview of Competition Act, 2002," Minister of State for Corporate Affairs RPN Singh said in a written reply to the Rajya Sabha.
However, no such specific communication has been received from the Department of Telecommunications (DoT) seeking exemption in telecom sector, he added.
He was replying to a question on whether government was deciding to bring all sectors, including telecom and banking, under the ambit of Competition Commission of India (CCI).
To resolve conflict between regulators, he further said, "in the proposed Draft National Competition Policy, a Cabinet Committee on Competition has been proposed to inter-alia to look into conflicts between regulators".
The draft policy is at a consultation stage at present, Singh said.
The CCI is empowered by sections 3 and 4 of the Competition Act, to check anti-competitive practices and abuse of dominant position.