Asian Paints: CCI orders investigation against the company, what is the matter?:

News Topical, Digital Desk : The impact on Asian Paints stock can be seen on Wednesday. In fact, the Competition Commission of India on Tuesday ordered to start an investigation against the company on the charge of taking unfair advantage of its position in the market. This action has been taken after a complaint by Birla Opus Paints, a unit of Birla Group. CCI has found indications in the initial evidence that Asian Paints has violated the rules related to competition. CNBC TV 18 had reported about this on June 6 itself and had reported that CCI may start an investigation in the matter.

What are the allegations against Asian Paints?

Grasim Industries alleges that Asian Paints has tried to stop new players by misusing its position in the market. Along with this, it is alleged that the company had pressurized raw material suppliers, warehouse owners, transport and clearing agents not to do business with Birla Opus Paints. These allegations have been made on the basis of a third party survey.

What did the Competition Commission say? CCI said in its statement that based on the evidence presented, it seems that Asian Paints has deliberately prevented third party suppliers from doing business with Birla Opus Paints, which affected the competition in the market. Now the investigation of this matter will have to be completed within 90 days, the responsibility of which has been handed over to the Director General of Investigation.

Both stocks rose on Tuesday On Tuesday, the share of Grasim Industries closed with a gain of about half a percent at 2,859.30. On the other hand, the share of Asian Paints closed with a gain of more than one percent at 2,368.85. Let us tell you that on June 10, Morgan Stanley had increased Grasim's rating from "equal-weight" to "overweight" and also increased the target price of the stock.