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.
Conclusion
India is doing all work for safeguarding the interest of consumer and this law is one of the
important pillars 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 81sections.
 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.
OBJECTIVES:
 To regulate certain payments.
 To regulate dealings in foreign exchange and securities.
 To regulate transactions, indirectly affecting foreign exchange.
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

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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.
3.7 Main Features of the Foreign Exchange Management Act (FEMA)
The Foreign Exchange Management Act (FEMA) was an act passed in the winter session of
Parliament in 1999, which replaced Foreign Exchange Regulation Act. This act seeks to make
offences related to foreign exchange civil offences. It extends to the whole of India.
The Foreign Exchange Regulation Act (FERA) of 1973 in India was replaced on June 2000 by
the Foreign Exchange Management Act (FERA), which was passed in 1999. The FERA was
passed in 1973 at a time when there was acute shortage of foreign exchange in the country.
It had a controversial 27 years stint during which many bosses of the Indian corporate world
found themselves at the mercy of the Enforcement Directorate. Moreover, any offence under
FERA was a criminal offence liable to imprisonment. But FEMA makes offences relating to
foreign civil offences.
FEMA had become the need of the hour to support the pro- liberalisation policies of the
Government of India. The objective of the Act is to consolidate and amend the law relating to
foreign exchange with the objective of facilitating external trade and payments for promoting the
orderly development and maintenance of foreign exchange market in India.
FEMA extends to the whole of India. It applies to all branches, offices and agencies outside India
owned or controlled by a person, who is a resident of India and also to any contravention there
under committed outside India by two people whom this Act applies.
The Main Features of the FEMA:
The following are some of the important features of Foreign Exchange Management Act:
i.
ii.
iii.
iv.
v.
vi.
It is consistent with full current account convertibility and contains provisions for
progressive liberalisation of capital account transactions.
It is more transparent in its application as it lays down the areas requiring specific
permissions of the Reserve Bank/Government of India on acquisition/holding of foreign
exchange.
It classified the foreign exchange transactions in two categories, viz. capital account and
current account transactions.
It provides power to the Reserve Bank for specifying, in , consultation with the central
government, the classes of capital account transactions and limits to which exchange is
admissible for such transactions.
It gives full freedom to a person resident in India, who was earlier resident outside India,
to hold/own/transfer any foreign security/immovable property situated outside India and
acquired when s/he was resident.
This act is a civil law and the contraventions of the Act provide for arrest only in
exceptional cases.
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vii.
FEMA does not apply to Indian citizen’s resident outside India.
Difference between the FERA and FEMA:
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