Today GTB was apparently amalgamated with OBC in probably the worst ever ’’OPAQUE’’ process.Why this can be called an MRTP violation,
What is a RESTRICTIVE TRADE PRACTICE
A restrictive trade practice is a trade practice, which
Prevents, distorts or restricts competition in any manner; or
Obstructs the flow of capital or resources into the stream of production; or
Which tends to bring about manipulation of prices or conditions of delivery or effected the flow of supplies in the market of any goods or services, imposing on the consumers unjustified cost or restrictions.
So why is this a case ?
1] Prevents, distorts or restricts competition in any manner; or
The classical case of ’’dichotomy’’ interest where RBI that is the regulator is also a stakeholder in a transaction, in other words the competitor can compete and also regulate!!!
2] Obstructs the flow of capital or resources into the stream of production; or
Here the most important resource was that of ’’information’’ which was privy to RBI as an regulator which it used as a competitor by its holdings in various banks and OBC in particular
3] Which tends to bring about manipulation of prices or conditions of delivery or effected the flow of supplies in the market of any goods or services, imposing on the consumers unjustified cost or restrictions.
The Share holders and other stake holders are affected,
Pvt banks watch out for this innovative and Opaque ’’Hostile Take over ’’ technique by other government banks.
M&A Investment bankers and M&A arbitrageur?s happy days are here again.
Nowhere in the world is there a regulator who participates in the business that he regulates , ok if you want to know what exactly I mean Can SEBI(indian stock regulators) be in the business of broking through say a subsidiary and also regulate the broking business, Then why this spl treatment to RBI ? Well it happens only in India
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