CCI Seeks Shareholder Comments On Proposed Revisions About Independent Agencies, Penalties

The fair trade regulator lately introduced new norms and updated the existing ones in the Competition Act, 2002, as part of the Competition (Amendment) Act, 2023

The watchdog has called for stakeholders to provide their comments on the proposed changes by July 8

Source : Facebook/Competition Commission of India

The Competition Commission of India (CCI) called for comments from stakeholders regarding the suggested revisions to the CCI (General) Regulations, 2009, after changes were made recently to the Competition Act.

The fair trade regulator lately introduced new norms and updated the existing ones in the Competition Act, 2002, as part of the Competition (Amendment) Act, 2023, reported PTI. The regulator recommended updates to the latest framework.

As part of the recommended changes, the watchdog issued a detailed process to implement and oversee the instructions under several sections of the Act, such as appointment of independent agencies to overlook the implementation of the orders.

These agencies, including accounting firms, professional entities, etc, will be responsible for ensuring compliance and report any non-implementation to the regulator. They will also be tasked with maintaining confidentiality and avoiding any conflicts of interest.

The regulator informed that it will also have the authority to suspend or terminate these agencies, however, decisions such as revocations are to be kept a record of in writing. These decisions would not be subject to judicial review.

The amendments also state that any payment made to these agencies would be done by individuals or entities included in the proceedings. These payments would be deposited with the regulator or as directed, ‘contingent on the satisfactory performance of the agencies’ responsibilities’.

Another change included in the new draft is the procedure for levying penalties. The new norms state that no penalty order or direction would be issued unless the affected party receives a show cause notice or is provided with a reasonable opportunity to present their case.

The watchdog has called for stakeholders to provide their comments on the proposed changes by July 8. The regulator has stressed that these revisions would help make the regulatory framework more effective and the implementation of these norms more efficient.