Question

Arrange the following items in correct sequence :
(A) Competition Act
(B) FEMA
(C) FERA
(D) MRTP
Choose the correct answer from the options given below :

• A. (A), (B), (C), (D)
• B. (A), (C), (B), (D)
• C. (D), (C), (B), (A)
• D. (C), (B), (D), (A)

Answer 1

The Correct Option is C

MRTP was introduced in 1969, followed by FERA (1973), FEMA (1999), and Competition Act (2002).

Answer 2

The Monopolies and Restrictive Trade Practices (MRTP) Act was introduced in 1969 to curb monopolistic practices and prevent undue restrictions on trade in India. The MRTP Act aimed to promote fair competition and protect consumer interests by regulating business practices that could distort the market.

In 1973, the Foreign Exchange Regulation Act (FERA) was enacted to control the flow of foreign exchange and regulate transactions related to foreign investment. FERA was designed to protect India’s foreign exchange reserves and ensure that foreign investments were in line with the country’s economic policies.

In 1999, FERA was replaced by the Foreign Exchange Management Act (FEMA), which aimed to facilitate external trade and payments while promoting the orderly development and maintenance of the foreign exchange market in India. Unlike FERA, FEMA focused more on liberalizing the foreign exchange regime and encouraging foreign investment.

The Competition Act was introduced in 2002 to promote and sustain competition in Indian markets. It was designed to prevent practices that could have an adverse effect on competition, such as abuse of market dominance, anti-competitive agreements, and mergers or acquisitions that could significantly reduce competition. The act established the Competition Commission of India (CCI) to enforce these regulations and promote a competitive business environment.