Finance Minister Nirmala Sitharaman said on Tuesday that regulatory frameworks must ensure rigorous oversight while also facilitating swift and seamless approvals for combinations (or mergers) that do not harm competition.
She mentioned that uncertainties, disrupted schedules and eroded value of transactions may result from delays in the necessary approvals by the CCI.
Key Highlights
Sitharaman emphasized that the regulatory framework should facilitate swift approvals for mergers and acquisitions that do not harm competition.
She highlighted the importance of maintaining a balance between regulatory oversight and a pro-growth mindset to ensure fair competition and foster innovation.
Through the green channel mechanism, the CCI clears combinations that are not forecasted to lessen competition which both cuts down on costs and shortens approval times for common mergers and acquisitions.
The Regulators should remember to do the least needed and maximum possible, so that they maintain watchful eyes and strive for development.
According to the Finance Minister, the regulator’s role in balancing caution with favoring growth will play a key part in forming a strong, equal and innovative economy in India.
Since the world is struggling with exports, environment, energy and emissions, it now requires achieving harmony between rules and freedom when growing the domestic economy, the FM pointed out.
She believes that as India becomes more involved in the worlds of trade and technology, it will be necessary to keep markets open and open to competition.
It has cleared 1,265 merger and acquisition cases and solved 1,200 antitrust issues.
India’s Finance Minister said the ongoing reforms, specifically asset monetization, increasing disinvestment and digital public infrastructure, are created to improve the market and stimulate competition.
