Come 1st June, all large companies would require to seek the CCI's approval before going ahead with merger and acquisitions. Also, the maximum time limit the CCI would take to vet mergers has been reduced to 180 days from the earlier 210 days
New Delhi: Indicating softening of merger and acquisition (M&A) regulations, corporate affairs minister Murli Deora today said that industry would be heard first before the Competition Commission of India (CCI) finalises the regulatory provisions in the new competition regime, reports PTI.
"We will be holding consultations with industry in Mumbai, Bangalore, Hyderabad etc, to get their feedback on the merger regulations. We don't want industry to say that they have not been allowed to give their views. If someone has a better alternative, we will change," Mr Deora said.
Mr Deora's statement comes ahead of his scheduled meeting with industry representatives and other stakeholders on 25th April in Mumbai.
It is to be noted that the CCI is already working with corporate law experts to draw a "more acceptable" M&A regulation. Late last week, MCA secretary DK Mittal and CCI chairman Dhanendra Kumar had met industry representatives and competition law experts to get their feedback on the draft merger regulations.
The minister further ensured the industry that the new competition regime will not disrupt the activities of corporate India.
Come 1st June, all large companies would require to seek the CCI's approval before going ahead with merger and acquisitions. The CCI has been empowered to do so with the notification of sections 5 and 6 of the Competition Act, 2002.
The issues concerning impact of merger of MNCs over their Indian subsidiaries was also raised by industry, which wanted that such mergers be kept out of the purview of the norms.
Another matter was concerning issuance of bonus shares and transfer of equity in case of mergers.
According to the provisions in the Act, companies with a turnover of over Rs1,500 crore will have to approach the CCI for approval before merging with another firm.
Among other things, CCI would take a prima facie view on proposed combinations within a month of filing by companies, addressing a major concern of industry about the time limit the body would take to vet mergers.
Also, the maximum time limit the CCI would take to vet mergers has been reduced to 180 days from the earlier 210 days, after facing opposition from the industry.
Besides, only those proposals would need the CCI's nod where the companies have combined assets of Rs1,000 crore or more, or a combined turnover of Rs3,000 crore or more.
Also, the target company's net assets have to be a minimum of Rs200 crore or it should have a turnover of Rs600 crore for CCI intervention.
The mobile payment solution is called CorpMcash
Corporation Bank has launched CorpMcash, an easy and secure mobile payment platform from eMudhra Consumer Services.
The mobile payment solution is called CorpMcash. The process is simple and convenient for both consumers and merchants for making and receiving payments through their mobile phones without having to divulge any information such as phone numbers or account numbers.
Under CorpMcash, a customer has to apply for registration with the Bank and subscribe for a virtual prepaid account. After processing the application the customer will get an SMS on his mobile to download the mobile application and activate it. As per the subscription, a prepaid virtual account will be opened with the Bank. He can recharge the prepaid account either online or through the Bank's branch.
For payment at merchant terminals the customer has to invoke the application on his mobile phone which will generate a unique 2D bar code. The merchant who has this facility will scan the barcode through his mobile phone (camera) and transmit it to the processing server. The server will check/authenticate and process the transaction and confirm both the customer & the merchant by sending a confirmation SMS.
Reliance Mutual Fund new issue closes on 26th April
Reliance Mutual Fund has launched Reliance Fixed Horizon Fund-XVIII-Series 10, a close ended income scheme. The tenor of the scheme is 92 days from the date of allotment.
The investment objective of the scheme is to generate regular returns and growth of capital by investing in a diversified portfolio of central, state government securities and other fixed income/debt securities normally maturing in line with the time profile of the scheme with the objective of limiting interest rate volatility. The scheme offers two options viz. growth and dividend payout option.
The scheme will allocate up to 85% of assets in money market instruments with low to medium risk profile. On the flipside it would allocate 15% to 100% of assets in government securities issued by central &/or state government & other fixed income/debt securities but not limited to corporate bonds with low to medium risk profile.
The new issue opens for subscription on 21st April and closes on 26th April.
The minimum investment amount is Rs5,000. The exit load charge will be nil for the scheme. CRISIL Short Term Bond Fund Index is the benchmark index for the scheme. The fund manager of the scheme will be Amit Tripathi.