A presentation on

MRTP ACT, FERA AND FEMA

Group Member:
y Ketan Ahir y Dhaval Patel y Bhavesh Patel y Moxit Shah y Krunal Jariwala

Monopolies and Restrictive Trade Practices(MRTP) Act, 1969

y The main purpose of this act was to prohibit &

eliminate monopolies from the market.

Monopolies and Restrictive Trade Practices(MRTP) Act, 1969

y Prevention of concentration of economic power
Under this contract, any undertaking producing one fourth or more of any type of goods and having assets of more than Rs 1 crore, is required to obtain clearance for any scheme of expansion.

y Monopolistic trade practices

Section 2 of Act defines monopolistic trade practice while section 31 provides for investigation in to such practices by the MRTP commission. The central government has provided this act to investigate upon monopolistic trade practices. For example: maintenance of price and profits at unreasonable levels, arbitrary prices by showing higher expenditure.

Monopolies and Restrictive Trade Practices(MRTP) Act, 1969

y Permitted monopolistic trade practices
According to this agreement, the central government permit monopolistic trade practice in some exceptional case. it is necessary for defense purpose , to ensure maintenance of supply of essential goods and services.

y Restrictive Trade practices

section 2 (0) defines restrictive trade practices , which may be investigated by the MRTP commission under section 37 of the Act .Restrictive trade practices include differential or discriminationary incentives based on quantities, stipulation in agreement as to the prices that should be charged on re sale.

Monopolies and Restrictive Trade Practices(MRTP) Act, 1969

y MRTP and New industrial policy 1991
The MRTP Act became effective in June 1970, with the focusing on productivity in the sixth plan , major amendments to the MRTP act were carried out in 1982 and 1984 in order to remove some defects to industrial growth and expansion. This process of change was given a new momentum in 1985 by increase the limit of assets.

MRTP Act is all about:

y Due to complexity of industrial structure and need of

achieving economics of scale for ensuring higher productivity and getting competive advantage in global market, this act was established. y To make this happen , interference of government was necessary. That intervention is nothing but MRTP act. y Main emphasis on controlling and restraining monopolistic and unfair trade practices.

FOREIGN EXCHANGE REGULATION ACT 1973

y Meaning:

This Act sought to regulate certain aspects of the conduct of business outside by Indian companies and India by foreign companies.

Money Changers:
y Money changers are any person authorized by RBI

in writing to deal in foreign currency where foreign currency can be in the form of notes, coins or travelers cheques and dealing means purchasing foreign currency in the form of notes, coins or travelers cheques or selling the same.

Authorized Dealers in Foreign Exchange

y The Reserve Bank may, on an application made to it this

behalf, authorize any person to deal in foreign exchange. An authorization under this section shall be in writing and - may authorize transaction of all description in foreign currencies or may be restricted to authorizing dealing in specified foreign currencies only. - may be granted to be effective for a specified period or within specified amounts.

Restrictions on Dealing in Foreign Exchange

y A person who has been permitted conditionally to

buy foreign exchange and he/she is not able to use for the specified purpose, person shall sell the foreign exchange to an authorized dealer or money changer within 30 days.

Restriction On Payments
y Make any payment to or for the credit of any person

resident outside India. y Make any payment to or for the credit of any person by order or on behalf of any person resident outside India. y Place any sum to the credit of any person resident outside India. y Nothing in this section shall restrict the doing by any person of anything within the scope of any authorization or exemption granted under this Act.

Foreign exchange management Act 2000

y Objectives y FEMA is to reduce the restriction on foreign

exchange. y To increase the flow of foreign exchange in India.

Provision /Rules / Regulation of FEMA

y Provision regarding dealing in foreign exchange:y Provision regarding holding of foreign exchange:y Provision regarding current account transactions:y Provision regarding capital account transactions:y Provision regarding export of goods and services:y Provision regarding authorized persons:y Provision regarding contravention and penalties:y Provision regarding adjucation and appeal:-

THANK
YOU