The Finance Ministry has sought an exemption for mergers and acquisitions of “loss-making and failing” banks as well as insurers that are being vetted by the Competition Commission, the Corporate Affairs Ministry said today.

However, no banks have themselves sought any exemption from their mergers being reviewed by the fair-trade regulator, Minister of State in Corporate Affairs Minister RPN Singh said in reply to the Rajya Sabha.

Asked about any exemption sought for the telecom sector, Singh said the Department of Telecom (DoT) has not sought any exemption for mergers and acquisitions (M&As) in the sector from the CCI purview.

“No such communication has been received from Department of Telecommunication seeking exemption in the telecom sector.”

About the banking sector, “Department of Financial Services has approached the Ministry (of Corporate Affairs) for granting exemption to loss making and failing organisations in the insurance and banking sector from the purview of the Competition Act, 2002,” Singh said.

CCI has the powers to review and approve the M&A transactions that could have bearing on competition in the market. The Competition Act empowers it to check anti-competition practices and abuse of dominant position. (PTI)