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

To arrange the items in the correct sequence, we need to understand the chronological order of when these Acts were enacted in relation to each other: 

1. MRTP Act: The Monopolies and Restrictive Trade Practices Act (MRTP) was enacted in 1969 to prevent monopolistic and restrictive trade practices in India.
2. FERA: The Foreign Exchange Regulation Act (FERA) was enacted in 1973 to regulate foreign exchange and was replaced by FEMA in 1999.
3. FEMA: The Foreign Exchange Management Act (FEMA) was enacted in 1999 to facilitate external trade and payments and to promote the orderly development of the foreign exchange market in India.
4. Competition Act: The Competition Act was enacted in 2002 to establish a commission to prevent practices having adverse effect on competition.

Therefore, the correct chronological sequence of these Acts is: MRTP (D), FERA (C), FEMA (B), Competition Act (A).

Accordingly, the correct answer is: (D), (C), (B), (A).

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.