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INVESTMENT RELATED ACTS
& LEGISLATIONS
FEMA
Administration of the Foreign Exchange Management
Act, 1999(42 of 1999) other than the enforcement
work mentioned under the Department of Revenue.
Act
Rules
Insurance
Act, 1938
Administration
of the Insurance Act, 1938(4 of 1938) and General
Insurance Business (Nationalisation) Act, 1972(57
of 1972) ; and related matters, General Insurance
and Reinsurance Companies in Public Sector, Subsidiaries
of the General Insurance Corporation.
Act
IRDA,
1999
Administration of Insurance Regulatory and Development
Authority Act 1999 and related matters.
Act
DICGCA,
1961
Administration of the Deposit Insurance and Credit
Guarantee Corporation Act, 1961.
Act
NIA,
1881
Administration of the Negotiable Instruments Act,
1881.
Act
SEBI
Act, 1992
Securities and Exchange Board of India Act, 1992
(15 of 1992).
Act
Securities
Contract Act, 1956
Administration of Securities Contracts (Regulation)
Act, 1956 (42 of 1956).
Act
Occupational
Safety and Health
Most countries
try to reinforce Occupational Health and Safety
(OSH) by implementing laws, which regulate the
measures the companies have to take. So does India.
Especially, the Factories Act, 1948, the Mines
Act, the Ports Act and the Construction Act refer
to safety of employees working in the respective
sectors. For other employees, for example such
as those employed in shops or establishments,
various state legislations are enacted, which
provide for almost similar matters as under the
Factories Act.
In order
to guarantee a sufficient level of OSH throughout
the whole country, these Acts lay down very specific
minimum requirements regarding health and safety.
This way, differences between the single states
in the administration of the Act can be minimised.
Another intention of these detailed provisions
is to facilitate the work of the inspectors who
have to examine the conditions of work in the
factories, which is said to require too much of
expert knowledge of the inspectors.
Labour Issues
Employment
legislation has a direct bearing on the labour
practices for each type of business. Different
legislations are applicable to different types
of businesses.
Important protections contained in various labour
laws are highlighted as under:
Work
Hours and Holidays
The maximum number of working hours for an adult
worker should not exceed 48 hours in a week and
nine hours in a day, while for a child the working
hours should not exceed 4-1/2 hours in a day.
No child below the age of 14 years can be employed
in a factory. Besides, no worker whether an adult
or child can be employed on any day on which he
has already worked in any other factory. Any worker
working for more than the maximum prescribed time
is entitled to wages in respect of such overtime
work at twice the ordinary rate of wages. Total
working hours should not exceed 60 in a week and
the total overtime hours should not exceed 50
in a quarter.
Every worker
must be allowed one holiday in a week, on any
day. Whenever a worker is required to work on
a weekly holiday, he is to be allowed a compensatory
holiday for each holiday so lost, within the same
month or within two months immediately following
that month. Every woman employee is entitled to
a maternity leave of not more than 12 weeks.
Minimum
Wages
The State Government is responsible for the
fixation and revision of the minimum rates of
wages for different classes of employees.
Other
incentives
Every employee (including casual and temporary
employees) whether employed directly or through
a contractor, who is in receipt of wages upto
Rs. 6,500 per month is entitled to be insured
under the 'Employees State Insurance (ESI) Scheme'.
Both the employer as well as the employee is liable
to make a monthly contribution to the ESI fund
computed at the specified rates on the monthly
wages.
Every employee
of a factory employing more than 20 persons, whether
employed directly or through a contractor (but
excluding apprentices and casual employees) shall
be entitled to be a member of Employees Provident
Fund. Both the employer as well as the employee
is required to make a contribution to the Fund
at the specified rates on the monthly wages.
Every employer
would be required to deposit into Employee's Deposit
Linked Insurance Fund (EDLIP) established under
an EDLIP Scheme formulated by the Government of
India, a sum of which shall not exceed one per
cent of the aggregate of the basic wages, dearness
allowance and retaining allowance (if any) payable
to every employee. The main purpose of establishing
such an Insurance Fund is to provide life insurance
benefits to the employees of the establishment.
Industrial
units are required to pay a minimum bonus to his
employees even if he suffers losses during the
fiscal year.
The
Factories Act 1948
Full
text of the Act
The
Dock Workers(Safety, Health, and Welfare) Act
1986
Full
text of the Act
The
Indian Ports Act 1908
Full
text of the Act
The
Building & Other Construction Workers (Regulation
of Employment & Working Conditions) Act 1996
Full
text of the Act
Competition
Bill
The
Bill aims to promote and sustain competition in
markets by preventing anti competitive practices
and creating a conducive economic environment.
In its Preamble it states that. "To provide
for the establishment of a Commission, to prevent
practices having adverse effect on competition,
to promote and sustain competition in markets,
to protect the interests of consumers and to ensure
freedom of trade carried on by other participants
in markets, in India, and for matters connected
there with or incidental thereto."
Salient
Features
- Competition
Commission of India(CCI) to be established
- Repeal
of MRTP Act, Dissolution of MRTPC
- Competition
Fund to be Created
- Pre-Merger
Notification made optional
- Prohibition
of abuse of dominant position
- Pending
Cases of MRTPC top be transferred to CCI.
- Pending
unfair Trade Practices to be under Consumer
Protection Act, 1986
Bill In Brief
The salient
features of the Bill cover prohibition of anti-
competitive agreements, prohibition of abuse of
dominance, regulation of combinations (acquisitions,
mergers and amalgamations of certain size); establishment
of the Competition Commission of India and definition
of its functions and powers.
The Bill
also states that the CCI may, upon its own knowledge
or information relating to certain "combinations'',
enquire as to whether such a combination has caused
or is likely to cause an appreciable adverse effect
on competition in India. A proviso, however, has
been inserted to stipulate that the Commission
shall not initiate enquiry into certain forms
of acquisitions, merger or amalgamation, or acquiring
of control after the expiry of one year from the
date of which such a combination has taken affect.
In the
case of an acquisition, the regulation of such
a combination would arise where:
(i) the
parties to the acquisition, being the acquirer
and the enterprise, whose control, shares, voting
rights or assets have been acquired or having
acquired jointly have:
- either,
in India, the assets of value of more than Rs
1,000 crore or turnover more than Rs 3,000 crore
- in
India or outside India, in aggregate, the assets
of the value of more than $500 millio
n or turnover more than
$1,500 million
ii) any group or an enterprise
belonging to such group whose control, shares,
voting rights or assets have been acquired or
being acquired jointly have;
- either,
in India, the assets of value of more than Rs
4,000 crore or turnover more than Rs 12,000
crore
- in
India or outside India, in aggregate, the assets
of the value of more than $2 billion or turnover
more than $6 billion
In the
case of merger or amalgamations, the regulation
of combinations relates to
(i) the enterprise remaining after merger or enterprise
created as a result of amalgamation, as the case
may be, have
- either,
in India, the assets of the value of more than
Rs 1,000 crore or turnover more than Rs 3,000
crore
- in
India or outside India, in aggregate, the assets
of the value of more than $500 million or turnover
more than $1,500 million
(ii) the group, or its constituent
enterprise remaining after merger or the enterprise
created as a result of the amalgamation, as the
case may be, have
- either,
in India, the assets of Rs 4,000 crore or turnover
more than Rs 12,000 crore
- in
India or outside India, the assets of the value
of more than $2 billion or
turnover more than $6 billion .
The Bill also seeks to create
a fund to be called the 'Competition Fund'. The
grants given by the Central Government, costs realized
by the Commission, and the application fee charged
will be credited to the fund.
On the
composition of the CCI, the Bill states that the
Commission will consist of a chairperson and not
less than two and not more than 10 other members
to be appointed by the Central Government. In
the first year of its establishment the Central
Government shall appoint the chairperson and the
member.
The chairperson
and the every other member shall be appointed
by the Central Government on the recommendation
of the selection committee consisting of the Chief
Justice of India or his nominee (chairperson),
the Union Finance Minister, Union Minister in-charge
of the Department dealing with this Act, RBI Governor
and Cabinet Secretary (members)
Details
of the bill
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