The presentation is all about Business Environment. And institutions and some acts important for running business in India.

1. 1. IRDA
a. Introduction
b. Establishment
c. Set Up
d. Objectives
e. Functions
2. MRTP ACT
a. Introduction
b. Objectives
c. Features
d. Non-applicability
e. Conclusion
3. Competition Act
a. Introduction
b. Objective
c. Features
d. Non-applicability
e. Conclusion
4. FEMAAct
a. Introduction
b. FERA (Objectives)
c. Comparison between FERA and FEMA
d. FEMA (objectives, features)
e. Conclusion
Topics
covered

2. Presented by
•Poonam Choudhary
•MBA
•Medicaps University

3. What is IRDA ?
•In order to provide better insurance coverage and
also to augment the flow of long-term resources
for financing infrastructure, the Government of
India opened the insurance sector to foreign and
Indian companies. Insurance Regulatory and
Development Authority Act, 1999 was passed. A
statutory body is set up to monitor the working of
insurance companies.

4. IRDA (INSURANCE REGULATORY
DEVELOPMENT AND AUTHORITY)
•Established in1999.
•Passed upon the recommendations of Malhotra
Committee report, headed by Mr. R.N. Malhotra
(Retired Governor, RBI)
•In April, 2000, it was set up as statutory body,
with its headquarters at New Delhi.
•The headquarters of the agency were shifted to
Hyderabad, Telangana in 2001.

5. Organizational Setup of IRDA:
• IRDA is a ten member body consists of:
• One chairman ( For 5 years and maximum AGE-60 years.)
• Five whole time members ( for 5 years and minimum age
62 years)
• Four part time members ( For 5 years)
• The chairman and members of IRDA are appointed by
Government of India.
• The present chairman of IRDA is MR T.S Vijayan.

6. To promote
the interest
and rights of
policy holders.
To promote and
ensure the
growth of
insurance
industry.
To bring
transparency
and orderly
conduct of in
financial
markets dealing
with insurance.
To ensure
speedy
settlement of
genuine claims
and to prevent
frauds and
malpractices.
OBJECTIVES
OF IRDA

7. Some of
Private
Insurance
Companies
under IRDA
Star
health
insurance
Shree Ram
General
Insurance
Co. Ltd
TATAAIG
General
Insurance
Co. Ltd
Reliance
General
Insurance
Co. Ltd

8. Section 14 of the IRDAAct,
1999 lays down the duties,
powers and functions of
IRDA.

9. • Registering and regulating insurance
companies.
• Protecting policyholder’s interests.
• It ensures the maintenance of solvency margin
by insurance companies.
Functions/Duties of IRDA

10. • Undertaking inspection, conducting
enquiries etc. on insurance
companies.
• It regulates and supervise the premium
rates and terms of insurance covers.
• Ensuring insurance coverage in rural
areas and of vulnerable sections of society.

11. • Licensing and establishing norms for
insurance intermediaries.
• Qualification and the code of conduct,
training for agents and intermediaries.

12. • All insurance companies have to register with
IRDA compulsorily.
• IRDA has power to levy penalty.
POWERS
• Accounts and balance sheets of companies have
to be submitted to IRDA.
• All insurance agents must obtain license from
IRDA.
OF
• All insurance agents must obtain license from
IRDA.IRDA

13. Insurance Ombudsman Scheme by IRDA
Created by
govt of India
on 11th
November,
1998.
There are 17
insurance
Ombudsman in
different
location.
Complaints are settled
out of the courts system
in a cost-effective,
efficient and impartial
way.
Meant for solving
the disputes
between insured
and insurer.

14. MRTP (Monopolistic and Restrictive Trade
Practice)
• Enacted in 1969.
• Act aims to prevent concentration of economic power in
hands of few.
• Protect consumer interest.
• To provide for the control of monopolies.
• To prohibit monopolistic and restrictive trade practices.
• Extends to the whole of India except Jammu and
Kashmir.
• Repealed in competition act, 2002 with few changes in it.

15. Prevention of
concentration of
economic power to
the common detriment
Control of monopolies
Prohibition of
Monopolistic Trade
Practices (MTP)
Prohibition of
Restrictive Trade
Practices (RTP)
Prohibition of Unfair
Trade Practices (UTP)
OBJECTIVES OF MRTP

16. (Monopolistic Trade Practice) MTP
Firms involved in MTP
tries to eliminate
competition from market.
Then take advantage of
their monopoly and charge
reasonably high prices.
Deteriorate the product
quality, limit technical
development, prevent
competition and adopt
unfair trade practices.

17. Restrictive Trade Practice
•Refusal to deal
•Tie-up sales
•Full line forcing
•Price discrimination
•Re-sale price maintenance
•Area restriction

18. False representation and misleading
advertisement of goods and services.
Falsely representing second-
hand goods as new.
Giving false facts regarding
sponsorship, affiliation etc. of
goods and services.
Misleading representation regarding
usefulness, need, quality, standard,
style of goods and services.
False claims or representation
regarding price of goods and
services.
Giving false guarantee or
warranty on goods and services
without adequate tests.
Unfair Trade Practices (UTP)

19. Monopolies and Restrictive Trade
Commission (MRTPC)
•Set up under section 5 of the Monopolies and
Restrictive Trade Practices Act, 1969.
•Quasi-judicial body.
•Enquire and take action in respect of unfair trade
practices and restrictive trade practices.
•Upon its own knowledge or information and
submit its findings to Central Government for
further action.

20. Government Company and undertaking owned
by Government.
Company established by a Central or State Act
Trade Unions ( labor union)
Non-applicability of MRTP Act

21. Competition Act, 2002
• On December 16, 2002, the Lok Sabha passed a bill to
replace the MRTP Act.
• Also known as Antitrust Law.
• Enforced on 13th January 2003.
• Govt made some amendments in 2007 and 2009.
• Covers whole of India except Jammu and Kashmir.
• Industry having assets of Rs. 1,000 cr or more having a
annual turnover of Rs. 3,000 cr or more would attract the
provisions of the law.

22. • Act provides for the constitution of Competition
Commission of India (CCI)
• Corporate body with quasi-judicial powers.
• Orders can be challenged only in the supreme court.
• Headed by a chairman and there would not be more
than 10 members of the commission to be appointed
by the Government of India.
• CCI has taken over MRTPC and all pending cases
were disposed within 1 year or shifted to concerned
consumer courts formed under consumer protection
act 1986.

23. OBJECTIVES OF COMPETITION ACT
To promote healthy competition in the market.
To prevent practices which are having adverse effect on
competition.
To protect the interests of
concerns in a suitable manner.
To ensure freedom
of trade in Indian
markets.
To prevent abuses
of dominant
position in the
market.
Creating awareness
and imparting
training about the
competition act.
Regulating the
operation and
activities of
combinations

24. Features of Competition Act
Very compact and
smaller legislation
which includes 66
sections.
CCI is
constituted
under the act.
Flexible enough
to change its
provisions as per
needs.
Civil courts do not
have any jurisdiction
to entertain any suit
which is within the
purview of this Act.
Possesses penalty
provision.
Competition fund
has been created.

25. CONCLUSION
•The main aim is to promote competition and curb all
anti-competitive agreements.
•This act restricts the abuses of dominant enterprises.
•Can also regulate any kind of combinations beyond a
particular size.
•Does not curb monopolies rather it curbs abuses of
monopolies.
•Protects the interest of the small and medium
industries in the country besides giving consumers
more powers to redress their grievances.

26. FEMAAct
Established in 1999.
“to consolidate and amend the law relating to
foreign exchange with the objective of facilitating
external trade and payments and for promoting the
orderly development and maintenance of foreign
exchange market in India.
Replacement of FERAAct. (Foreign Exchange
Regulation Act)

27. • Enacted in September 1973 and came
in force from January 1, 1974.
• Amended in 1993 and replaced by
FEMA in 1999.
• Lays emphasis on the regulation of
currencies
FERA
• Enacted in 29, December 1999
and came in force on June 2000.
• Manages the foreign exchange.FEMA

28. OBJECTIVESOFFERA
Regulate certain payments
Regulate dealings in foreign exchange and
securities.
Regulate transactions indirectly affecting
foreign exchange.

29. OBJECTIVESOFFERA
Regulate import and export of currency and bullion.
To conserve the foreign exchange resources of the country and
to utilize the same in the interests of the economic development
of the country.
Regulate employment of foreign nationals.

30. OBJECTIVESOFFERA
Regulate holding of immovable property outside
India.
Regulate acquisition, holding etc. of immovable
property in India by non residents.
Regulate foreign companies.

32. Restrictive
Not suitable for
liberalization
policies
Hindrance in
globalization
Threat of
criminal
offence
Challenging
condition
REASONS WHY FERA WAS REPLACED

33. OBJECTIVES OF FEMA
To help facilitate
external trade
and payments in
India.
To help
development
and
maintenance of
foreign exchange
market in India.
Defines the
procedures,
formalities,
dealings of all
foreign exchange
transactions in
India

34. OBJECTIVES OF FEMA
To make strong
and developed
foreign exchange
market
To maintain good
relations with
other countries.

35. FEATURES OF FEMA
It is a civil law.
Provides only for
monetary penalty
for violating the
provisions.
Conserves
precious foreign
exchange.
It is liberal and
flexible in nature.
It is more
transparent in its
application.

36. FEMAAct ( Applicable to)
• The whole of India
• Any branch, office and agency, which is situated outside
India, but is owned or controlled by a person resident of
India.
• Sale, purchase and exchange of any kind.
• Banking, financial and insurance services.
• NRI (Non Resident Indian)
• OCB (Oversees Corporate Body)
A company or firm owned at least 60% by NRI’s.

37. MAJOR PROVISIONS OF FEMAAct
Dealing and holding
of foreign exchange
Current and Capital
account transactions
Penalties on
contravention
Power of RBI to
inspect authorized
person

38. Free transactions on current account
subject to reasonable restrictions.
Mechanism that enables the RBI and
Central Govt to pass regulations and
rules relating to foreign exchange in
tune with Foreign Trade policy.
More concerned with
management instead
FERA was concerned
about exchange
regulation or control
Sell or draw
without prior
permission and
can later on
inform RBI.
RBI controls
over capital
account
transactions.
Dealing in foreign
exchange through
authorized
persons.

39. CONCLUSION
• Strongly enforces foreign exchange laws.
• All the current account transactions are free. (Sec 3)
• Capital account transactions are permitted only to the
extent as specified by the RBI. (Sec 6)
• RBI have controlling role in its management however
it cannot directly handle foreign exchange transaction
and must authorize a person to deal with it as per
directions.
• Provisions of various enforcement, penalties,
adjudication and appeals in this area.