CCI to Facilitate E-Filing for M&A Cases from October 1

Mumbai: The Competition Commission of India (CCI) will facilitate electronic filing of documents, including for its approval of merger and acquisition (M&A) proposals, with effect from October 1.

The move would help in faster disposal by CCI of M&A cases, whose numbers have been on an uptrend and may increase further by 20 per cent this year.

"We are almost ready with our arrangements (on e-filings) and will offer the window from October 1," CCI chairman Ashok Chawla said at the CII Annual Conference on Competition law and practice on Friday.

According to the Chairman, M&A filings for this year are likely to be 20 per cent more than the previous year.

"There is atleast 15-20 per cent increase in filings. Most of these have been from sectors where there is more economic activity in India such as pharmaceuticals, mines and minerals, financial, automobile and components," he said.

So far, the commission has dealt with atleast 300 cases related to mergers and acquisitions.

While noting that CCI now provides consultation process to M&A parties on substantive issues, Mr Chawla said the response for the same has not been adequate.

He also said CCI has provided guidance to entities involved in M&As with respect to filing notices in a manner prescribed under the competition laws in the "first instance itself".

Meanwhile, CCI chief noted that only 40-45 per cent cases pertaining to anti-competition were found to be worth carrying forward for probe on an initial basis by the CCI.

He said the commission should be getting more effective cases and those which have a bearing on the markets.

Regarding concerns on excessive penalties levied by the CCI, Mr Chawla said the fines imposed are based on the conduct and the offence.

However, he said, "If the penalties have to be such so as to make the corporates change their behaviour and also serve as a signal to others in businesses."

Besides, Mr Chawla said the commission "did not have and did not wish to have at this stage an elaborate guideline on penalties which are mathematical in nature such as in some other jurisdictions like European Union".

He also noted that quantum of penalties imposed by CCI cannot be according to global practices as the regulator was dealing with businesses in India.