Amendment to the Competition Act

The Union Cabinet has approved a proposal of the Ministry of Corporate Affairs to amend the Competition Act 2002.

Some of major amendments are:

1. revising the definition of ‘turnover’ and ‘group’;
2. reducing the overall time limit for finalising combinations from 210 days to 180 days; and
3. inserting a new Section 5A that will enable the central government to lay down, in consultation with the commission, different thresholds for any class or classes of enterprise for the purpose of examining acquisitions, mergers and amalgamations.

Details of the amendments proposed are not yet in the public domain.

FDI from Pakistan allowed

The Reserve Bank of India wide its Circular RBI/2012-13/173 A. P. (DIR Series) Circular No. 16 dated August 22, 2012 has allowed a person who is a citizen of Pakistan or an entity incorporated in Pakistan, with the prior approval of the Foreign Investment Promotion Board of the Government of India, purchase shares and convertible debentures of an Indian company under Foreign Direct Investment Scheme, provided that such FDI is not allowed in defence,space and atomic energy and sectors/ activities prohibited for foreign investment.