One section in the Banking Laws Amendment Bill, 2011 is fuelling a potential turf war with sectoral regulators on one side and the Competition Commission of India on the other. The section says nothing contained in the Competition Act, 2002 shall apply to any banking company, the state bank of India, any subsidiary bank, any corresponding new bank or any regional rural bank or co-operative bank or multi-state co-operative bank in respect of the matters relating to amalgamation, merger, reconstruction, transfer, reconstitution or acquisition. in short, RBI should be the sole regulator of the sector and cci should have no jurisdiction. Similar demands have been made by shipping and telecom sector regulators as well. In response, the Competition Commission had this to say
Ashok Chawla, Chairman, CCI to CNBC TV18
Why it is being perceived that what the competition regulator does can as well be done by the sectoral regulators- not so-the legal architecture doesn't provide for that. |
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