Prominent features of MRTP and FERA
FEATURES OF MRTP
Establishment of Competition Commission Under this law
Govt. of India appoints the chairman and other member of competition commission. Competition act 2002 gives the rules and regulation regarding establishment and functions of this commission.
Qualification of chairperson of Competition commission
He or she should be Judge of high court + 15 years or more experience in the field of international trade , commerce , economics , law , finance , business and industry .
Function of Competition commission:
1. To stop activity and practice which are promoting monopoly.
2. To promote the competition.
3. To protect the interest of consumers.
India is doing all work for safeguarding the interest of consumer and this law is one of the important pillar in this way.
FEATURES OF FERA
The Foreign Exchange Regulation Act (FERA) was legislation passed by the Indian Parliament in 1973 by the government of Indira Gandhi and came into force with effect from January 1, 1974. FERA imposed stringent regulations on certain kinds of payments, the dealings in foreign exchange and securities and the transactions which had an indirect impact on the foreign exchange and the import and export of currency. The bill was formulated with the aim of regulating payments and foreign exchange
• Regulated in India by the Foreign Exchange Regulation Act (FERA),1973.
• Consisted of 81 sections.
• FERA Emphasized strict exchange control.
• Control everything that was specified, relating to foreign exchange.
• Law violators were treated as criminal offenders.
• Aimed at minimizing dealings in foreign exchange and foreign securities.
FERA was introduced at a time when foreign exchange (Forex) reserves of the country were low, Forex being a scarce commodity. FERA therefore proceeded on the presumption that all foreign exchange earned by Indian residents rightfully belonged to the Government of India and had to be collected and surrendered to the Reserve bank of India (RBI). FERA primarily prohibited all transactions, except one‘s permitted by RBI.
• To regulate certain payments.
• To regulate dealings in foreign exchange and securities.
• To regulate transactions, indirectly affecting foreign exchange.
• To regulate the import and export of currency.
• To conserve precious foreign exchange.
• The proper utilization of foreign exchange so as to promote the economic development of the country.