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Don't fear a studious regulator

If regulators had a greater understanding of market realities, universal conventions, global market practices and their implications, the market would benefit from a better appreciation

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Somasekhar Sundaresan
The Competition Commission of India (CCI) has expressed its intent to study shareholder and investment agreements by private equity investors to understand market realities about exercise of control better. The intent has set in motion a range of fears among the private equity industry about the State getting too closely involved in understanding commercial nuances in private investment agreements. 

The fears are misplaced. In fact, such fear is the cause of uninformed regulation of market systems. Not just the CCI, but every other regulator should expend energy and study commercial contracts in the segments of society they regulate. The absence of
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Dec 15 2020 | 11:11 PM IST

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