New Delhi : The Confederation of Indian Industry (CII) Tuesday urged the government not to make mandatory issuance of notifications prior to any merger, saying it would cause inordinate procedural delays and increase the project cost for the enterprises.
The CII also asked the government to promote self-regulation while amending the Competition Act, 2002.
"While internationally the trend is deregulation of economic activity, imposing a mandatory pre-merger notification regime would create an impression of excessive regulation of business in India," CII said in a statement.
In a representation to the Company Affairs Ministry, the industry chamber said that a pre-notification merger regime apart from causing procedural delays and increasing project cost would also lead to a shift in the focus of the competition authorities from substantive issues to routine and irrelevant tasks of scrutinising such filings.
It also said regulatory and procedural obstacles can boomerang on the country's economic growth and recommended induction of accountability and transparency in the Competition Law.