Finance Minister Arun Jaitley cautions regulators against functional overlaps

However, Mr Jaitley underlined the need for an active and responsive regulator. “If two telecom majors are to amalgamate, will there be common turf areas between the telecom regulator and market regulator CCI. Therefore, how do you built the jurisdiction of the two. Obviously jurisdiction in this area is emerging,” he said.

Speaking at the International Competition Network’s Merger Workshop 2014, Mr Jaitley stressed the need for sharing of global experiences in the field of mergers and acquisitions to fully develop the competition law and practice.

Mr Jaitley said that mergers and acquisitions have transnational effect. He further said though there would continue to be mergers and acquisitions leading to big corporate conglomerates yet there is need to draw a red line to avoid dominance and curbing of open competition in market by them.

Mr Jaitley expressed hope that the much-awaited GST Bill, which provides for a uniform indirect tax structure, would be introduced in the current winter session of Parliament.

CCI chairman Ashok Chawla said that competition is very essential in the market as it leads to innovations and is helpful to the consumers at large in order to get best and new products at reasonable and competitive prices.

He said that mergers and acquisitions are recognised world over as they help in organic growth of the market. He however cautioned that some mergers and acquisitions adversely affect the competition and therefore, there is need for regulation.

Meanwhile, the finance ministry has invited suggestions from the public as to how to improve performance of public sector banks.