REGULATION OF CORPORATE DOMINANCE IN INDIA by : DR. T.K. JAIN AFTERSCHO ☺ OL centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india FOR – CSE & PGPSE STUDENTS (CSE & PGPSE are free online programmes open for all, free for all) mobile : 91+9414430763
My words..... “ Small is beautiful”. Let us promote small entrepreneurs. Let us encourage firms to adopt fair practices. Large comapnies get many advantages due to their size. Small entrepreneurs need our support. They can break the dominance of large enterprises by their innovations, creativity, service orientation and flexibility. This presentation will give you an overview on corporate dominance in India and government initiatives to reduce these dominations. I welcome your suggestions. I also request you to help me in spreading social entrepreneurship across the globe – for which I need support of you people – not of any VIP. With your help, I can spread the ideas – for which we stand....
What are the monopolistic practices under MRTP act? Section 2(i) : 1. maintaining prices of goods or services at an unreasonable level by restricting supply; 2. unreasonably preventing competition 3. limiting technical development or capital investment to the common detriment 4. increasing unreasonably(a) the cost of production of any goods; or (b) charges for the any services; 5. increasing unreasonably(a) the prices(b) the profits from any goods or services; 6. lessening competition by unfair methods
What are the sectors where monopolistic practices are permitted ? 1. defence of the country; 2. supply of essential goods and services; 3. relating to an agreement to which the Central Government is a party. 4 activities by government
What are restrictive trade practices ? (i) horizontal fixation of price (ii) vertical fixation of price and re-sale price maintenance; (iii) allocation of markets between purchasers; (iv) discrimination between purchasers; (v) boycott; (vi) exclusive dealing contracts; and (vii) tie-up arrangements. [Section 2(o)] : = practices 1. which obstructs the flow of resources into the stream of production; or 2. which brings about manipulation of prices
Is it necessary to get restrictive trade practices registered ? Yes Section 33(1) of the MRTP Act lists the the various categories of agreements which have to be registered.
How does the commission work? Earlier we had MRTP commission and now we have CCI – who work on complaint by any firm / individual / governent and investigate the matter and give their judgement. They try to promote fair competition and prevent monopoly or dominant position. They can even order for split / division of an enterprise, when they find it in the interest of the industry.
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