Finmin wants loss making banks, insurers be exempt from CCI purview

The finance ministry has sought an exemption for mergers and acquisitions of ''loss-making and failing'' banks as also insurers under vetting by the Competition Commission, the corporate affairs ministry said yesterday.

However, none of the banks have themselves sought any exemption from their mergers being reviewed by the fair-trade regulator, corporate affairs minister R P N Singh told the Rajya Sabha.

Replying to a question whether exemption had been sought for the telecom sector, Singh said the department of telecom (DoT) had not sought any exemption for mergers and acquisitions (M&As) in the sector from the CCI purview.

''No such communication has been received from department of telecommunication seeking exemption in the telecom sector.''

Regarding the banking sector, Singh said, ''department of financial services has approached the ministry (of corporate affairs) for granting exemption to loss making and failing organisations in the insurance and banking sector from the purview of the Competition Act, 2002.''

CCI has the powers to review and approve the M&A transactions that could have implications for the competition in the market. It is empowered under the Competition Act, to check anti-competition practices and abuse of dominant position.