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Consider the following statements regarding the Competition Commission of India (CCI):
1. The Competition Commission of India is composed of a chairperson and six additional members, all of whom are appointed by the President of India.
2. The CCI has the authority to regulate mergers and acquisitions in India that may adversely affect competition, requiring certain deals to receive its approval prior to completion.
3. The headquarters of the Competition Commission of India is located in Mumbai.
Which of the statements given above is/are correct?
  • a)
    1 Only
  • b)
    1 and 2 Only
  • c)
    2 Only
  • d)
    1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding the Competition Commission...
1. Statement 1: This statement is incorrect. The Competition Commission of India is indeed composed of a chairperson and six additional members, but they are appointed by the Central Government of India, not by the President.
2. Statement 2: This statement is correct. The CCI has the authority to regulate mergers and acquisitions (M&A) that may adversely affect competition. Certain deals require the CCI's approval before they can be completed to ensure they do not harm competition in the market.
3. Statement 3: This statement is incorrect. The headquarters of the Competition Commission of India is located in New Delhi, not Mumbai.
Thus, only statement 2 is correct, making Option C: 2 Only the accurate choice.
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PASSAGE IIIThe need for Competition Law becomes more evident when foreign direct investment (FDI) is liberalised. The impact of FDI is not always pro-competitive. Very often FDI takes the form of a foreign corporation acquiring a domestic enterprise or establishing a joint venture with one. By making such an acquisition the foreign investor may substantially lessen competition and gain a dominant position in the relevant market, thus charging higher prices. Another scenario is where the affiliates of two separate multinational companies (MNCs) have been established in competition with one another in a particular developing economy, following the liberisation of FDI. Subsequently, the parent companies overseas merge. With the affiliates no longer remaining independent, competition in the host country may be artificially inflated. Most of these adverse consequences of mergers and acquisitions by MNCs can be avoided if an effective competition law is in place. Also, an economy that has implemented an effective competition law is in a better position to attract FDI than one that has not. This is not just because most MNCs are expected to be accustomed to the operation of such a law in their home countries and know how to deal with such concerns but also that MNCs expect competition authorities to ensure a level playing field between domestic and foreign firms.Q. With reference to the passage, consider the following statements:1. It is desirable that the impact of Foreign Direct investment should be pro-competitive.2. The entry of foreign investors invariably leads to the inflated prices in domestic markets.Which of the statements given above is/are correct?

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Consider the following statements regarding the Competition Commission of India (CCI):1. The Competition Commission of India is composed of a chairperson and six additional members, all of whom are appointed by the President of India.2. The CCI has the authority to regulate mergers and acquisitions in India that may adversely affect competition, requiring certain deals to receive its approval prior to completion.3. The headquarters of the Competition Commission of India is located in Mumbai.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)2 Onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
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