INVESTMENT AND COMPETITION LAW

Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: Sixth Semester
Name of the Subject:
INVESTMENT AND COMPETITION LAW
SEBI ACT 1992

SECURITY
EXCHANGE BOARD
OF INDIA ACT 1992

The securities and exchange board of India (SEBI) was set up as an
administrative body in April 1988. It was given statutory status on November
1992 by promulgation of the SEBI ordinance. The objective of setting up SEBI
is to protect the interest of investors in securities and to promote the
development and to regulate the security market.
INTRODUCTION

SCOPE AND PURPOSE
1.To know the approaches of its work, and power granted to the stock exchange
board of India under the SEBI Act 1992.
2.What is the organizational structure of the SEBI and how its Various
Departments are headed at each level and what are their functions.
3. What are the guidelines issued by the stock exchange Board of India in recent
year to protect the interest of the investor.
4. How the SEBI is regulating the Primary as well as the Secondary Market.
5.What are the reforms introduced by the SEBI in the working of the stock
exchange

The board is playing a dual role by working as a controlling authority and
Development institutions for achieving its objectives. The main objectives are:-
• Investors Protection
• Steady flow of saving
• Fair practices by the issue
• Promotion of efficient services
• Transparency in work
OBJECTIVE

ESTABLISHMENT OF SEBI BOARD
SEBI ha s been established as a body corporate by notification of the central
Government for the purpose of the Act in pursuance to section - 3 of the SEBI act.
Board is a body corporate and ha s perpetual succession and a common seal, with
powers to acquire, hold and dispose of property, both moveable and immovable, and to
contract as also to sue or to be sued by the name of SEBI.
Securities and exchange Board of India (SEBI) was set up as an administrative body
on April 1988 and was given statutory status on 30.1.1992 by promulgating SEBI
ordinance which was later replaced, by securities and Exchange Board of India Act
1992. Companies raise capital to meet financial requirements of its projects through
issue of securities in primary market.

SALIENT FEATURES OF SEBI
Acts The salient features of SEBI act are as follows: SEBI shall be a body
corporate by the name having perpetual succession and a common seal with
power to acquire hold and dispose of property, both movable and immovable and
to contract and sell, by the said name, sue or be sued.The head office of the board
shall be at Bombay. The SEBI may establish offices at other places. The chairman
and the members of the board are appointed by central Government

.
The general superintendence, direction and management of affairs of the board
are in the hands of members, which may exercise all powers and do all acts and
things which may be exercised. The government can prescribe terms of office
and other conditions of the service of the chairman and members of the board. It
is the primary duty of the board to protect the interests of the investors in
securities and to promote the development of and to regulate the securities market
by such measures as it think fit.

1. Powers relating to stock exchanges & intermediaries
SEBI has wide powers regarding the stock exchange and intermediaries dealing in
securities. It can ask information from the stock exchanges and intermediaries
regarding their business transactions for inspection or scrutiny and other purpose.
2. Power to impose monetary penalties
SEBI has been empowered to impose monetary penalties on capital market
intermediaries and other participants for a range of violations. It can even impose
suspension of their registration for a short period.
3. Power to initiate actions in functions assigned
SEBI has a power to initiate actions in regard to functions assigned. For example, it
can issue guidelines to different intermediaries or can introduce specific rules for
the protection of interests of investors.
POWER OF SEBI

4. Power to regulate insider trading
SEBI has power to regulate insider trading or can regulate the functions of merchant
bankers.
5. Powers under Securities Contracts Act
For effective regulation of stock exchange, the Ministry of Finance issued a
Notification on 13 September, 1994 delegating several of its powers under the
Securities Contracts (Regulations) Act to SEBI.
SEBI is also empowered by the Finance Ministry to nominate three members on the
Governing Body of every stock exchange.
6. Power to regulate business of stock exchanges
SEBI is also empowered to regulate the business of stock exchanges, intermediaries
associated with the securities market as well as mutual funds, fraudulent and unfair
trade practices relating to securities and regulation of acquisition of shares and
takeovers of companies

FUNCTIONS OF SEBI:
We can classify the functions of SEBI into
three categories:-
Protective functions
Developmental functions
Regulatory functions
1. PROTECTIVE FUNCTIONS:
As the name suggests, the main focus of this function of SEBI is to protect the interest of
investor and security of their investment
As protective functions SEBI performs following functions:
(i) SEBI checks Price Rigging:
Price Rigging means some people manipulate the prices of securities for inflation or
depressing the market price of securities. SEBI prohibits such practice to avoid fraud and
cheating which can happen to any investor.
(ii) SEBI prohibits Insider trading:
Any person which is connected with a company such as directors, promoters, workers
etc is called Insiders. Insider can use this information for their personal benefits or

make a profit from it, such process is known as Insider Trading.
(iii) SEBI prohibits fraudulent and Unfair Trade Practices:
SEBI always restricts the companies which make misleading statements which are
likely to induce the sale or purchase of securities by any other person.
(iv) SEBI sometimes educate the investors so that become able to evaluate the
securities and always invest in profitable securities.
(v) SEBI issues guidelines to protect the interest of debenture holders.
(vi) SEBI is empowered to investigate cases of insider trading and has provision
for stiff fine and imprisonment.
(vii) SEBI has stopped the practice of allotment of preferential shares unrelated to
market prices.
2. DEVELOPMENTAL FUNCTIONS:
(i) SEBI promotes training of intermediaries of the securities market.
(ii) SEBI tries to promote activities of stock exchange by adopting a flexible and
adaptable approach in following way:

3. REGULATORY FUNCTIONS:
(i) SEBI has framed rules and regulations and a code of conduct to regulate the
intermediaries such as merchant bankers, brokers, underwriters, etc.
(ii) These intermediaries have been brought under the regulatory purview and private
placement has been made more restrictive.
(iii) SEBI registers and regulates the working of stock brokers, sub-brokers, share
transfer agents, trustees, merchant bankers and all those who are associated with stock
exchange in any manner.
(iv) SEBI registers and regulates the working of mutual funds etc.
(v) SEBI regulates takeover of the companies.
(vi) SEBI conducts inquiries and audit of stock exchanges.

OTHER FUNCTIONS
1. Registering and regulating the working of stock brokers, sub-brokers, share transfer
agents, bankers to issue, trustees of the trust deed, registrars to an issue, merchant
bankers, underwriters, portfolio managers, investment adviser and such other
intermediaries who may be associated with securities markets in any manner.
2. SEBI also perform the function of registering and regulating the working of
depositories, custodians of securities. Foreign Institutional Investors, credit rating
agencies etc.
3. Registering and regulating the working of Venture Capital Funds and collective
investments schemes including mutual funds.
4. Promoting and regulating self - regulatory organizations.

Semester: SIXTH Semester
Semester: SIXTH Semester
SARFAESI ACT 2002

chapter Contents Section
i Preliminary 1-2
ii Regulation of Securitisation and Reconstruction of
Financial Assets of Banks and Financial Institution.
3-12A
iii Enforcement of Security Interest 13-19
iv Central Registry 20-26
v Offenses And Penalty 27-30
vi Miscellaneous 31-42
BRIEF OF
SARFAESI

Need for SARFAESI
The object of reducing ‘Non-performing Assets’ could not be
achieved even after enacting ‘RDBI, Act1993’ and as a result,
another legislation on the similar field was enacted and called
‘SARFAESI Act’.
Many know as to what happens in Civil Courts and many know as
to how to delay a Civil Case for so many years.
Under SARFAESI Act, 2002, the Bank can determine the
outstanding due after noting the objections from the
borrower/guarantor if any proceed against the ‘secured asset’ by
taking physical possession of the same and initiating auction
proceedings in accordance with the provisions and the SARFAESI
rules.

Object, Extent &
Need
An Act to regulate securitisation and reconstruction of the financial
assets and enforcement of the security interest and matter connected
therewith or incidental thereto.
The acts extends to whole of India. It came into force on the 21st
day
of June 2002.
Banks and FI’s lends money by obtaining security. The security is
obtained to act as a protection for the money advanced and in case of
need, the money can be realized by the sale of securities.
Lender’s right over the securities, both moveable and immoveable, for
the realization of the amount advanced, were limited and less effective
since they were required to take help of the legal system which was
taking unduly long time to complete prior to passing of the SARFESI
Act,2002.

IMPORTANT ASPECT
1.Securitisation
2.Reconstruction of Financial Assets
3.Enforcement of Security
Interest

SECURITIZATION
SECURITIZATION Lender/Orginator
QIB/ Investor
QIB/ Investor
Financial Assistance
Transfer of Secured Assets
Consideration
of asset
purchased
Security Receipt
Subscription of securities

When the bank or financial institution decides that the financial asset be now
acquired by the securitization company or reconstruction company a notice may
be given about such acquisition to the obligor i.e. borrower or any other person
liable to repay to the bank.(SECTION 6)
Securitisation means acquisition of financial assets by any securitization
company or reconstruction company. from any originator, whether by
raising funds by securitization co. through QIB’s by issue of security
receipts representing, undivided interest in such financial asset or
otherwise.
SECURITIZATION

PROPERTY
NON PERFORMING ASSET
An asset or account of a borrower classified by a bank as sub-standard,
doubtful or loss-asset in accordance with the directions or under guidelines
relating to asset classification issued by the Reserve Bank of India.
Property means immovable property, movable property,any debt or any right to
receive payment of money whether secured or unsecured, receivables, whether
existing or future, intangible assets such as known-how, patent, copyright, trade
mark, license, franchise or any other business or commercial right of similar
nature.

"Qualified Institutional Buyer" means a financial institution, Insurance company,
bank, state financial corporation, state industrial development securitisation
company or reconstruction company which has been granted a certificate of
registration under sub-section (4) of section 3 or any asset management company
making investment on behalf of mutual fund or pension fund or a foreign
institutional investor registered under the Securities and Exchange Board of
India Act, 1992 (15 of 1992) or regulations made thereunder, or any other body
corporate as may be specified by the Board.
Qualified Institutional Buyers

Section 13(2) of the SARFAESI Act speaks about the notice to be given by the
secured creditor to the borrower who has defaulted in making the repayment and
whose account is classified as NPA.
NOTICE FOR ENFORCEMENT OF SECURITY
The precondition to get the right to serve this notice is that the notice should be
asking the borrower to discharge in full his liabilities to the secured creditors
within sixty days from the date of notice. Failing to pay so by the borrower the
secured creditor gets further rights as detailed in the Act.
The notice should give the details of the amount payable by the borrower and the
secured asset intended to be enforced by the secured creditor in the event of non-
payment of secured debt by the borrower

Appeal to Appellate DRT
Any person aggrieved by any order made by the Debts Recovery Tribunal can prefer
appeal along with the prescribed fees to the appellate Tribunal within thirty days from the
date of receipt of the order of Debts Recovery Tribunal.
No appeal can lie unless the borrower deposits 50% of the debt claimed by the secured
creditor. The Tribunal has powers for reasons to be recorded to reduce this amount to 25%
of the claim amount
The SARFAESI Act has conferred jurisdiction on many matters to the Debts Recovery
Tribunal or the Appellate Tribunal. Therefore, for any such matters where empowerment and
jurisdiction is to the Debts Recovery Tribunal or the Appellate Tribunal, no Civil Court shall
have jurisdiction to entertain any suit or proceeding.
Similarly, any Court or Authority cannot grant injunction in such matters and actions taken or
to be taken under this Act as well as under Recovery of Debts Due to Banks and Financial
Institutions Act, 1993. Due to such provisions the implementation of the Act becomes
effective.
CIVIL COURTS NO JURISDICTION

Acquisition of any right or interest, in the security, by any securitization
company or reconstruction company for the purpose of realization of such
financial assistance is called as asset reconstruction
ASSET RECONSTRUCTION
Securitization means acquisition of financial asset by securitization or
reconstruction company from the Bank for realization of debt. It is also called
asset reconstruction.
It also includes change or take over of the management of the business of the
borrower for proper management of business of the borrower.

Constitutional Validity of SARFESI, 2002
MARDIA CHEMICALS VS UNION OF INDIA (AIR 2004 SC 2371)
Since these already existed a RDBI, Act1993. These was no need for draconian
legislation like SARFESI.
The mechanism provided for recovery of the debt under S.13 does not provide for
any adjudicatory forum.
NPA is declared on whims and fancies.
 That remedy of appeal under S.17 of the Act is also illusory since appeal is
entertainable only when 75% of amount claimed, is deposited by the borrower.

FOREIGN INVESTMENT
LAWS

Structure of FEMA
Applies to the whole of India and all branches,
offices and agencies outside India which are owned
or controlled by a person resident in India. FEMA
has 49 sections of which 9 (section 1 to 9) are
substantive and the rest are procedural/
administrative. Section 46 of FEMA grants power
to Central Government to make rules to carry out
the provision of FEMA. Section 47 of FEMA grants
power to RBI to make regulations to implement its
provisions and the rules made there under.

Section Description 1 Application and Commencement of FEMA 2
Definitions 3 to 9 Provisions relating to Regulations and Management of
Foreign Exchange 10 to 12 Provisions relating to Authorized Person 13 to
15 Provisions relating to Contraventions and Penalties 16 to 38 Provisions
relating to Adjudication, Appeal and Directorate of Enforcement 39 to 49
Miscellaneous Provisions
Substantive Provisions

Authorized Person
Capital Account Transaction
Current Account Transaction
Export Foreign
Exchange Person
Person Resident in India
Person resident outside
India Repatriate to India
Security Transfer
Some of the important definitions

Significance of Foreign Investment
Through foreign investment corporations extend their business activity
into foreign countries. The main object of Foreign investment is to
acquire or retain control over markets and/or productive resources.

Relevant FEMA Regulations
Consolidated FDI Policy, DIPP, Commerce
Ministry AP Dir Circulars – RBI’s Changes
FEMA Regulations – Mode of Investment
Forms of Foreign Investments
Foreign Direct Investment Foreign Investments under Portfolio
Investment Scheme (PIS) Foreign Venture Capital Investments
Other Foreign Investments Immovable Properties in India

FDI via Indian Cos Owned & Controlled by Resident Indian Citizens =
Domestic Investment not counted as FDI Owned or Controlled by NRs =
Indirect FDI Ownership >50% of Capital (Eq / CCDs / CCPS) Control Right to
appoint a majority of Directors or to control management or policy decisions
including by virtue of their Shareholding or Management Rights or Share
Holders Agreement or Voting Agreements
Condition for Indirect FDI

1 Foreign Exchange Management Act,1999
2 Foreign Exchange Management (Export And Import Of Currency)
Regulations, 2000
3 Foreign Exchange Management (Acquisition And Transfer Of
Immovable Property In India) Regulations, 2000
4 Foreign Exchange Management (Acquisition And Transfer Of
Immovable Property Outside India) Regulations, 2000
Name of Act/ Regulation

5 Foreign Exchange Management (Adjudication Proceedings And Appeal)
Rules, 2000
6 Foreign Exchange Management (Borrowing And Lending In Rupees)
Regulations, 2000
8 Foreign Exchange Management (Encashment of Draft, Cheque, Instrument
and Payment of Interest) Rules, 2000

FEMA
Rules by CG Regulations by RBIFEMA
 RULE TO BUY FOREIGN EXCHANGE
 Permissible foreign exchange can be drawn 60 days in advance. In
case it is not possible to use the foreign exchange within the period
of 60 days, it should be immediately surrendered to an authorised
person. However, residents are free to retain foreign exchange up to
USD 2,000, in the form of foreign currency notes or TCs for future
use or credit to their Resident Foreign Currency (Domestic) [RFC
(Domestic)] Accounts.
 Foreign exchange for travel abroad can be purchased from an
authorized person against rupee payment in cash below
Rs.50,000/-. However, if the sale of foreign exchange is for the
amount equivalent to Rs 50,000/- and above, the entire payment
should be made by way of a crossed cheque/ banker’s cheque/ pay
order/ demand draft/ debit card / credit card / prepaid card only.

FERA did not contain any express provision on the right of on impleaded person
to take legal assistance, FEMA expressly recognizes the right of appellant to
take assistance of legal practitioner or chartered accountant
FERA conferred wide powers on a police officer not below the rank of a Deputy
Superintendent of Police to make a search, The scope and power of search and
seizure has been curtailed to a great extent
Difference in FERA
and FEMA

Court’s jurisdiction
 Section 34.Civil court not to have jurisdiction: No civil court
shall have jurisdiction to entertain any suit or proceeding in respect
of any matter which an Adjudicating Authority or the Appellate
Tribunal or the Special Director (Appeals) is empowered by or
under this Act to determine and no injunction shall be granted by
any court or other authority in respect of any action taken or to be
taken in pursuance of any power conferred by or under this Act.

 Section 35.Appeal to High Court :
 Any person aggrieved by any decision or order of the Appellate Tribunal
may file an appeal to the High Court within sixty days from the date of
communication of the decision or order of the Appellate Tribunal to him on
any question of law arising out of such order:
 Provided that the High Court may, if it is satisfied that the appellant was
prevented by sufficient cause from filing the appeal within the said period,
allow it to be filed within a further period not exceeding sixty days.
 (a) the High Court within the jurisdiction of which the aggrieved party
ordinarily resides or carries on business or personally works for gain; and
 (b) where the Central Government is the aggrieved party, the High Court
within the jurisdiction of which the respondent, or in a case where there are
more than one respondent, any of the respondents, ordinarily resides or
carries on business or personally works for gain.

 Foreign exchange Management Act, 1999 came into force on 1st
June
2000
 It extends to the whole of India.
 It applies to all persons and "person" under Section 2(u) includes-
 (i) an individual,
 (ii) a Hindu undivided family,
 (iii) a company,
 (iv) a firm,
 (v) an association of persons or a body of individuals, whether
incorporated or not,
 (vi) every artificial juridical person, not falling within any of the
preceding sub-clauses, and
Overview of FEMA

Semester: sixth Semester
Investment and competition law
Semester: sixth Semester
Investment and competition law
The competition law in
india

INTRODUCTION
The history of competition law refers to attempts by
governments to regulate competitive markets for goods and
services, leading up to the modern competition or
antitrust laws around the world today. ... The English
common law doctrine of restraint of trade became the
precursor to modern competition law.

The concept of monopoly is quite ancient and can be traced back to the Indian
and Roman civilizations.
Kautilya’s Arthashastra, deals with statecraft and economic policy. It does not
distinguish between the wealth of the sovereign and that of his subjects. It also
illustrates how hoarders were severely punished.
Under the Roman Empire, the business practices of market traders, guilds and
governments have always been subject to scrutiny, and sometimes faced severe
sanctions.
The first traceable event of origin of competition law can be regarded as the
book of “Wealth of Nations” by Adam Smith where he gave the metaphor of the
invisible hands.
ORIGIN OF COMPETITION LAW

Liberalization
Privatization
Globalization
Curbing Monopolies to promoting Competition
MRTP Act, 1969
The Competition Law
BACKGROUND OF COMPETITION
LAW IN INDIA

During GATT negotiations in 1947, limited international competition
obligations were proposed and with the creation of WTO in 1995 cross-border
competition issues on a sector specific basis were discussed.
During this period the WTO took up the examination of the interaction between
trade and competition policy in 1997 which raised interest in several countries.
Several economies adopted competition laws as a sequel to their market
oriented economic reforms process.
As a result many countries have been facing pressure to draft new and effective
competition laws. This necessitated the drafting of competition law in UK, India
and other countries.
Some of these countries also adopted sector-specific regulatory laws (in telecom,
electricity, financial services, etc.) after these sectors had been opened up for
private players.
This upsurge in interest in competition and regulatory laws in many economies
reflects the substantial changes that have been taking place in their economic
governance system.
JOURNEY OF COMPETITION LAW IN INDIA

Competition Appellate Tribunal (CAT)
To hear and dispose of appeals against the specific order of the Commission.
 An appeal has to be filed within 60 days of receipt of the order / direction /
decision of the Commission.
 A person aggrieved with the direction, decision or order of the CAT can
appeal to the Supreme Court of India within 60 days from the date of
communication of the direction, decision or order.
APPEAL PROVISIONS

First and foremost step in the direction of having a competition policy in India is
said to have taken in pursuance to WTOs Singapore Ministerial declaration in
1996
An expert group was set up by the Union Ministry of Commerce in Oct, 1997 to
study issues relating to the interaction, including anti-competitive practices and
the effect of mergers and amalgamation on competition
Expert Group Report suggested in Jan, 1999 the enactment of competition law
and recommended harmonization of competition principles, competition policy
and competition law enforcement efforts
The Finance Minister of India in his budget speech on 27th Feb, 1999 stated that
the MRTP Act has become obsolete in the light of international economic
developments and there is a need to shift our focus from curbing monopolies to
promoting competition

Ensure fair and healthy competition in the market.
Level playing field.
Faster and inclusive growth.- Allocative efficiency, Productive efficiency,
Dynamic efficiency. To achieve all three of these efficiencies at the same time is
goal of the Competition Law.
Competition law believes in the premise that the unrestrained interaction of the
competitive forces in the market will yield the best allocation of economic
resources, lower prices, improve quality and maximum material progress for the
citizens.
Thus, the principal objective of the Competition Law is to make the market
economy work better by stopping vested interests from obstructing markets. The
purpose, therefore, is to maintain and protect the competitive process.
The benefits of competition for economic growth and consumer welfare are well
recognized and therefore, strict enforcement of competition law is a big
challenge for any competition authorities
OBJECTIVES OF THE COMPETITION
LAW

Whenever, there is effort to restrict competition through means such as collusive
agreements to fix prices and outputs they need to be prohibited through legal
devices provided by the competition law.
Horizontal Agreements
 Agreement to limit production and/or supply;
 Agreement to allocate markets;
 Agreement to fix price;
  Bid rigging or collusive bidding;
Vertical Agreements
 Tie-in arrangement;
 Exclusive supply / distribution arrangement;
 Resale price maintenance;
 Refusal to deal. Concerted Actions/practices Exemptions – IPRs, Copy
Rights, Patents etc.(Section 3 of the Act deals with anti-competitive agreements.)
ANTI COMPETITIVE AGREEMENTS

Dominance refers to a position of strength which enables an enterprise to operate
independently of competitive forces or to affect its competitors or consumers or
the market in its favour. Abuse of dominant position impedes fair competition
between firms, exploits consumers in the relevant product / geographic market.
Abuse of dominant position includes:
 Imposing unfair conditions or price,
 Predatory pricing,
 Limiting production/market or technical development ,
Creating barriers to entry,
Applying dissimilar conditions to similar transactions,
Denying market access, and
Using dominant position in one market to gain advantages in another market.
(Section 4 of the Act deals with abuse of dominance)
ABUSE OF DOMINANCE

Broadly, combination includes acquisition of control, shares, voting rights or
assets, acquisition of control by a person over an enterprise where such person
has control over another enterprise engaged in competing businesses, and
mergers and amalgamations between or amongst enterprises where these exceed
the thresholds specified in the Act in terms of assets or turnover.
If a combination causes or is likely to cause an appreciable adverse effect on
competition within the relevant market in India, it is prohibited and can be
scrutinized by the Commission.
The thresholds for the joint assets/turnover. (Section 5 & 6 of the Act deals with
abuse of dominance
COMBINATIONS

In the matter of Mohit Manglani vs. M/s Flipkart India Pvt. Ltd. the Informant
has alleged that the OP’s, which are e-commerce portals, are indulging in unfair
trade practices by entering into exclusive agreements with sellers of goods and
services by excluding the other portals or physical channels of sale. So, a hype
of product scarcity is created. The instance of Chetan Bhagat’s Half
girlfriend book is cited which was exclusively available at web portal of flipkart
affecting the physical sale market. The Commission found that e-commerce
accounts for 1% of the total retail market of India. Further, the online portals are
meant to bring in the supplier and the end consumer. The Commission further
said that only those agreements, which have Appreciable Adverse Effect on
Competition (AAEC) are void. The Act identifies under section 3(3) the
category of Horizontal Agreement which falls within the purview of the AAEC
whereas in case of Vertical Agreements, the one that has been specified under
section 3(4) of the Act and additionally those categories of agreements against
which AAEC is proved. Therefore the Commission analysed the facts in light of
the factors mentioned in Section 19 of the Act to find violations.
The Commission held that these principles are touchstone of assessing AAEC
Mohit Manglani vs. M/s Flipkart India
Pvt. Ltd (Case No. 80 of 2014)

Therefore the Commission analysed the facts in light of the factors mentioned in
Section 19 of the Act to find violations.
The Commission held that these principles are touchstone of assessing AAEC
and further held that such exclusive agreements mentioned by the informant fails
to cause a barrier to new entrant to the market or it is effecting retail market in
any manner. In fact the e-commerce portals are increasing competitions. Not
only this Commission found that e-commerce portals are able to enable the
consumers make informed choices at the time convenient to them. No
contravention of the section 3 or 4 of the Act was found and the

HOW TO FILE INFORMATION
Any person, consumer or their association or trade association can file information
before the Commission.
Central Govt. or a State Govt. or a statutory authority can also make a reference to the
Commission for making an inquiry.
“Person” includes an individual, HUF, firm, company, local authority, cooperative or
any artificial juridical person. What are the issues on which information can be filed?
The information can be filed on the issues like anti-competitive agreements and abuse of
dominant position or a combination.
Class of consumers. The fee –
Rupees 5000/- (Five thousand only) in case of individual, or Hindu undivided family
(HUF), or Non Government Organisation (NGO), or Consumer Association, or Co-
operative Society, or Trust, duly registered under the respective Acts,
Rupees 20,000/-( twenty thousand only) in case of firms, companies having turnover in
the preceding year upto Rupees one crores, and
Rupees 50,000/- (fifty thousand only) in case not covered under clause (a) or (b) above.

INVESTMENT AND COMPETITION LAW

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