The Competition Commission of India’s (CCI) Draft Competition Commission of India (Conduct) Rules, 2025 marks a crucial step towards safeguarding commercially sensitive information and curbing potential conflicts of interest.
By introducing stringent measures to protect confidential data and imposing restrictions on stock market investments by its employees, the CCI is not only preempting malpractice but also reinforcing the confidence of all market stakeholders.
One of the standout features of these proposed rules is the rigorous framework to ensure that commercially sensitive information — vital for making informed business decisions — is securely handled within the Commission.
CCI’s integrity in handling information is of utmost importance. Although past instances of some alleged leaks did not involve any high-stakes commercial secrets, they raised concerns about confidentiality. By mandating robust obligations on its officers, the CCI is addressing these concerns. In doing so, it is creating an environment where stakeholders — from corporations to consumers — can engage with the regulator without fear that sensitive data will be inadvertently exposed.
Equally significant is the prohibition on employees purchasing stocks or engaging in equity-related transactions that could lead to potential conflicts of interest.
Data protection
In a sector where access to non-public, sensitive information is intrinsic to regulatory functions, the risk of insider trading cannot be ignored. The new restrictions are a decisive measure to control misuse of privileged information.
By barring its employees from capitalising on confidential market insights, the CCI is taking a stand against any possibility of financial impropriety and setting higher ethical standards within the institution, while also reassuring markets about its impartiality.
Despite the Competition Act, 2002 not mandating that proceedings be held in camera, the CCI has chosen this path to conduct its deliberations and hearings to protect sensitive commercial information.
However, this approach has created an environment — a sort of “bio bubble” —where even the most innocuous disclosures can be misconstrued as leaks. It is important to note that this phenomenon is not a failure of the system; rather, it is a direct consequence of the CCI’s stringent measures designed to safeguard confidentiality.
Public consultations
Ravneet Kaur, the Chairperson of the CCI, has consistently championed public consultations even on issues that pertain largely to internal governance.
By inviting stakeholders to review and comment on these conduct rules, she underscores the importance of inclusivity in policymaking. This transparent consultative process not only enhances the legitimacy of the regulatory framework but also ensures that the interests of all market participants — whose confidential information is ultimately at stake — are well-represented.
In an era where regulatory bodies face increasing scrutiny, the CCI’s proactive measures are significant. The new conduct rules promise to fortify the ethical backbone of the Commission while inspiring confidence among industry players and the public alike. By safeguarding sensitive information and eliminating avenues for insider trading, the CCI is reinforcing the integrity of India’s competitive landscape and setting a precedent for regulators worldwide.
The Draft Competition Commission of India (Conduct) Rules’, 2025, have a dual focus on protecting commercially sensitive information and curtailing potential insider trading, coupled with a legacy of self-imposed strict confidentiality and stakeholder engagement.
