By way of an August 30 2017 notification, the Ministry of Corporate Affairs held that nationalised banks are exempt from the applicability of the merger control regime under the Competition Act 2002.
The notification stipulates that in the exercise of powers conferred by Section 54(a) of the act, and pursuant to the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 and 1980, the government – in the interest of the public – will exempt all cases of reconstitution, transfer (wholly or in part) and amalgamation of nationalised banks from the application of Sections 5 and 6 of the Competition Act for a period of 10 years ending on August 30 2027.
This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.
For further information on this topic please contact MM Sharma at Vaish Associates by telephone (+91 11 4249 2525) or email (email@example.com). The Vaish Associates website can be accessed at www.vaishlaw.com.