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‘Don't keep bank mergers out of CCI purview'
- The Competition Commission of India (CCI) on Monday said the proposed exclusion of bank mergers from its purview was ‘not good', as other sectors might also claim such exemptions.
- CCI Chairman Ashok Chalwa said intra-corporate group restructuring would alter the country's economic architecture and ultimately benefit consumers as more Indian companies got involved in cross-border mergers and acquisitions (M & As) than ever before.
- He further said that the inter-play of market forces calls for a broad regime to avoid adverse practices and improve businesses for consumer satisfaction.
MFIs can tap ECB
- The Reserve Bank of India (RBI) on Monday allowed micro finance institutions (MFIs) to raise funds via external commercial borrowings (ECBs) up to $10 million or equivalent during a financial year for permitted end-uses under the automatic route.
- The MFIs eligible for the same will be:
- those registered under the Societies Registration Act, 1860;
- those registered under Indian Trust Act, 1882;
- MFIs registered either under the conventional state-level cooperative acts, the national level multi-state cooperative legislation or under the new state-level mutually aided cooperative acts and not being a co-operative bank;
- non-banking finance companies (NBFCs) categorised as ‘non-banking finance company-micro finance institutions' (NBFC-MFIs)
- companies registered under Sec. 25 of the Companies Act, 1956, and involved in micro finance activity.
- ECB funds should be routed through normal banking channels.
- The RBI has also stipulated that the designated AD must ensure that the ECB proceeds are utilised for lending to self-help groups or for micro-credit or for bona fide micro finance activity, including capacity building.
- It has also been decided that non-government organisations engaged in micro finance activities can avail themselves of ECB up to $10 million or equivalent under the automatic route as against the present limit of $5 million
