PIB- CCI Holds Round-Table Meeting for Good Corporate Governance

CCI Holds Round-Table Meeting With Top Corporates, Emphasises Competition Compliance for Good Corporate Governance

Competition Commission of India today held a round-table meeting with top companies of the country on the subject of “Competition Compliance for Good Corporate Governance”. Representatives of trade associations/industry associations such as ASSOCHAM, FICCI, CII and PHDCCI also attended the meeting.

Addressing the representatives of the companies, Mr. Sachin Pilot, Minister of State (Independent Charge), Ministry of Corporate Affairs, stressed that the foremost objective of Competition Commission of India is to ensure protection of consumers. Underlying the importance of healthy competition, the Minister said that a fair Regulatory environment would help the Indian economy in moving up higher in the global business index.

Mr. Sachin Pilot advised CCI that it should keep an eye on situations that appear to be anti-competitive such as rising profit margins inspite of reducing production levels. He emphasized that Govt. believes in consultation before taking a decision. The amendments to the Competition Act have already been sent to the Standing Committee of the Parliament and he was hopeful that after seeking views/ suggestions, the amendments to the Competition Act would be given a legislative sanction.

During the round-table discussion, number of suggestions/ views were put up by the corporates as well as industry associations. Some companies requested the Govt. to ensure level playing field between public and private sector. The Minister assured that no reverse discrimination for govt. companies would be normally allowed though he was of the view that the social objectives of the public sector was also to be kept in mind while deciding a level playing field.

Interacting with the corporate during the round-table discussion, Mr. Ashok Chawla, Chairman, CCI, informed that since its inception, orders have been issued in more than 230 cases out of the 320 cases investigated by CCI. Mr. Chawla sought to nullify any suggestions of any tilt towards govt sector in matters concerning Competition Act and informed that CCI has issued orders in 21 cases where govt. enterprises were a party.

Chairman, CCI suggested the corporates to set up a high level Competition Compliance Committee in their respective organizations to review competition compliance. He also informed that SEBI would be requested to include competition compliance under Section 49 of Listing Agreements.

Representatives of trade associations gave wide gamut of suggestions such as widening of advocacy efforts of CCI, listing the dominant players in each sector, incentives to companies with better competition compliance record etc. CCI assured that the suggestions made in the Round Table meeting would be kept in mind.

The round-table meeting held today by CCI with the corporates was part of advocacy initiatives of Competition Commission of India. Top 100 Indian companies based on the market capitalization were invited for the meeting.

Source: Press Information Bureau.

PIB- CCI Issues Cease and Desist Order against NIMPA

CCI Issues Cease and Desist Order against Northern India Motion Pictures Association

The Competition Commission of India passed its final order today against Northern India Motion Pictures Association (NIMPA) directing it to cease and desist from indulging in anti-competitive conduct. The order has been issued in a case filed by M/s Shri Ashtavinayak Cine Vision Limited against NIMPA and other film associations alleging inter alia contravention of the provisions of sections 3 (anti-competitive agreements)of the Competition Act, 2002.

The Commission found NIMPA’s practices of pressurizing the distributors to settle the monetary disputes with its members to be in contravention of the provisions of Competition Act. Accordingly, the Commission also directed NIMPA to file an undertaking regarding compliance of its order within a period of 30 days from the receipt of the order.

As NIMPA was already directed by the Commission in earlier cases to suitably modify its Articles of Association, rules and regulations and remove the condition of compulsory registration of films as a pre-condition for release of any film, the Commission did not find it necessary to pass similar directions again in the present case. The Commission also did not find it appropriate to impose any penalty upon NIMPA in light of the facts and circumstances of the present case.

The order of Commission has been passed in Case No. 71 of 2011 and a copy of the order has been uploaded on the website of CCI at www.cci.gov.in.

Source: Press Information Bureau.

PIB- New President and Vice-President of the Institute of Company Secretaries of India

Shri S. N. Ananthasubramanian, a Fellow Member of the Institute of Company Secretaries of India (ICSI) has been elected as the President of the Institute w.e.f 19th January 2013. Shri Harish K. Vaid, also a Fellow Member of the Institute, has been elected as the Vice President.

Shri Ananthasubramanian has been in practice as a Company Secretary at Thane since 1991. He has contributed to the visibility and growth of the profession as member of ICSI-WIRC between 2001 and 2006. As its Chairman in 2005, he was actively associated in ICSI-NSE Collaboration towards the inclusion of Corporate Governance Module in National Certificate in Financial Markets (NCFM) and as its Secretary, facilitated the formation of Thane Chapter of ICSI in 2003. Shri Ananthasubramanian was a member of various Committees of the Council of the ICSI including the Core Group for formulating the ICSI-Vision 2020.

Shri Harish K. Vaid has been a Member of various Committees on Corporate Laws constituted by ASSOCHAM, Confederation of Indian Industries and PHD Chambers of Commerce & Industry. He is also on the board of various listed and unlisted companies.

Source: Press Information Bureau.

PIB- EPAG suggests CCI to focus on Promoting the Competition Culture in the Country

Eminent Persons Advisory Group Suggests CCI to Focus on Promoting the Competition Culture in the Country

The Eminent Persons Advisory Group (EPAG) that held its second meeting in Delhi today suggested that time has come wherein the culture of total governance should now be replaced with culture of competition in the country. . Mr. N.L.Mitra, former Vice Chancellor, NLSIU and Member of EPAG said that Competition Commission should initiate dialogue with Govt. Organizations and promote practices that foster competition. He said that in a multi regulatory system, sectoral regulators will manage the systems and would act as functional regulators. Competition Commission being a market regulator should therefore focus on promotion of culture. It was suggested to CCI that whenever a case of merger and acquisition is brought before it, the concerned companies should be asked to submit a competition due diligence report.

Mr. V.N.Kaul, former CAG & Member, EPAG, also stressed on the need of conducting a study into the competition practices of govt. policies. He also suggested CCI to have a look at the orders of Sectoral Regulators from the competition angle.

Dr. S.L.Rao, ex-Chairman, CERC & Member, EPAG, suggested that agriculture marketing was a major area where competition is minimum, farmers are not having direct access to the market to sell their goods and they are forced to go through intermediaries. Dr. Rao suggested CCI to examine in great detail the field of agriculture marketing to promote competition in the area. He also suggested that CCI should take steps to ensure greater media visibility about the Competition Act.

Chairman of Competition Commission of India, Mr. Ashok Chawla, apprised the EPAG about the activities undertaken during the past six months. Mr. Chawla told EPAG that in the Anti Trust Division, 50 cases including three suo motto cases have been received during the last six months. A total of 321 cases have been received by the CCI since its inception in May, 2009. Out of this, 230 cases have already been settled. The total penalty imposed in the decided cases amounts to more than Rs.8,000 crores. In respect of merger cases, approvals have been accorded within the self-imposed time deadline of 30 days.

The Eminent Persons Advisory Group was set up by CCI in May, 2012 to give broad inputs and advice on larger issues impacting markets and competition, good international practices, improved advocacy etc. to the Commission.

Source: Press Information Bureau.

PIB- Full Text of the New Companies Bill available on the website of the MCA

Full Text of the New Companies Bill available on the website of the Ministry of Corporate Affairs

The Companies Bill, 2012, as passed by the Lok Sabha on 18th December 2012 is now available on the website of the Ministry of Corporate Affairs at www.mca.gov.in. The Bill is proposed to be considered and passed by the Rajya Sabha in the coming Budget Session of the Parliament.

The Rules to be prescribed under the new legislation, in draft legislative form, are proposed to be placed on the Ministry’s website after the Rajya Sabha considers and passes the Bill, for comments/ suggestions from all the stakeholders.

Source: Press Information Bureau.