BASIC REGULATORY

REQUIREMENTS
Dr. Archana Mishra
 Brief
• An entrepreneur has to take into account the basic regulatory
requirements of the country in order to ensure sustainability of the profits
and productivity of his/her business.
• The most important regulation relates to the environment. The
environmental regulatory requirements envisage a wide legislative
framework covering every aspect of environment protection.
• An organization for its smooth and effective functioning, must ensure
health and safety of its employees.
– The Factories Act, 1948;
– The Mines Act, 1952 and
– The Dock Workers (Safety, Health & Welfare) Act, 1986.
• Government of India has taken steps like, announcing a competition
policy, enacting Competition Act, 2002 and setting up of Competition
Commission of India , in order to ensure a healthy and fair competition in
the market economy.
• For regulation of the export and import of goods and services an
entrepreneur has to abide by the Foreign Trade (Development and
Regulation) Act, 1992 and the EXIM policy announced by the Government
from time to time.
 Environment
• In India, the Ministry of Environment and Forests (MoEF) is the apex administrative body for :-

– (i) regulating and ensuring environmental protection;

– (ii) formulating the environmental policy framework in the country;

– (iii) undertaking conservation & survey of flora, fauna, forests and wildlife; and

– (iv) planning, promotion, co-ordination and overseeing the implementation of environmental and

forestry programmes.

• The Ministry is also the Nodal agency in the country for the United Nations Environment Programme

(UNEP).

• Prevention and control of industrial pollution - Central Pollution Control Board (CPCB) at the Central

Level, which is a statutory authority, attached to the MoEF. The State Departments of Environment and

State Pollution Control Boards are the designated agencies to perform this function at the State Level.
 Environment
• The Environment (Protection) Act, 1986 : Protect and improve environmental quality,

control and reduce pollution from all sources, and prohibit or restrict the setting and /or

operation of any industrial facility on environmental grounds. According to the Act, the

term "environment" includes water, air and land and the inter- relationship which exists

among and between water, air and land, and human beings, other living creatures, plants,

micro-organism and property.

• The other important environmental legislations may be categorised as follows:-

– Water Pollution

– Air Pollution

– Forest Conservation

– Wildlife Protection

– Biological Diversity
 Environment
• National Environment Policy - 2006: It briefly describes the key
environmental challenges currently and prospectively facing the
country.
• Also, several sector-specific policies have been evolved, the major
being:-
– National Zoo policy
– The National Forest Policy, 1988
– The National Conservation Strategy and Policy Statement on
Environment & Development, 1992
– The policy statement for abatement of pollution, 1992
– The National Water Policy,2002
– Wildlife Conservation Strategy 2002
• Environmental Information System (ENVIS) has been established as a
plan programme and as a comprehensive network in environmental
information collection, collation, storage, retrieval and dissemination
to varying users.
• International Co-operation & Sustainable Development Division
(IC&SD) is the nodal point within the Ministry of Environment and
Forests (MoEF) to co-ordinate all international environmental
cooperation and sustainable development issues.
 Exports and Imports
• Foreign Trade (Development and Regulation) Act, 1992, which replaced
the Imports and Exports(Control) Act, 1947, gave the Government of India
enormous powers to control it.
– It has empowered the CG to make provisions for development and regulation
of foreign trade by facilitating imports into, and augmenting exports from
India and for all matters.
– The CG can prohibit, restrict and regulate exports and imports.
– It authorizes the CG to formulate and announce an Export and Import (EXIM)
Policy .
– It provides for the appointment of a Director General of Foreign Trade by the
CG for the purpose of the Act. He shall advise CG in formulating export and
import policy and implementing the policy.
– Every importer and exporter must obtain a 'Importer Exporter Code Number'
(IEC) from DG of Foreign Trade or from the officer so authorised.
– The DG or any other officer so authorised can suspend or cancel a licence
issued for export or import of goods in accordance with the Act only after a
reasonable opportunity of being heard.
– GOI formulates and announces an Export and Import policy (EXIM policy) and
amends it from time to time. EXIM policy refers to the policy measures
adopted by a country with reference to its exports and imports.
 Exports and Imports
• There are some other laws which control the export and
import of goods. These include:-
Tea Act,1953
Coffee Act, 1942
The Rubber Act, 1947
The Marine Products Export Development Authority Act,1972
The Enemy Property Act, 1968
The Export (Quality Control and Inspection) Act, 1963
The Tobacco Board Act, 1975
• At the central level, the Ministry of Commerce and Industry
is the most important organ concerned with the promotion
and regulation of the foreign trade in India.
 Occupational Health & Safety (OH & S)
• The Constitution of India has also specified provisions for ensuring occupational
health and safety for workers in the form of three Articles i.e. 24, 39(e and f)
and 42.
• The regulation of labour and safety in mines and oil fields is under the Union
list. While the welfare of labour including conditions of work, provident funds,
employers' invalidity and old age pension and maternity benefit are in the
Concurrent list.
• The Ministry of Labour, Government of India and Labour Departments of the
States and Union Territories are responsible for safety and health of
workers. Directorate General of Mines Safety (DGMS) and Directorate General
Factory Advice Services & Labour Institutes (DGFASLI) assist the Ministry in
technical aspects of occupational safety and health in mines and factories &
ports sectors, respectively.

– The Factories Act, 1948

– Mines Act, 1952
– Dock Workers (Safety, Health & Welfare) Act, 1986
– Plantation Labour Act, 1951
– Explosives Act, 1884
– Petroleum Act, 1934
Occupational Health & Safety (OH & S)
– Insecticide Act, 1968
– Indian Electricity Act, 1910
– Indian Boilers Act, 1923
– Indian Atomic Energy Act, 1962
– Building and Other Construction Workers (Regulation of Employment
and Conditions of Service) Act, 1996
– Beedi and Cigar Workers' (Conditions of Employment) Act, 1966

• National Safety Council of India (NSCI)

– Road Transportation Safety
– Safety of Health in Construction Sector
– Safety, Health and Environment in Small and Medium Scale
Enterprises(SMEs)

• Bureau of Indian Standards has formulated an Indian Standard on

OH&S management systems. It is called as the IS 18001:2000
Occupational Health and Safety Management Systems.
 Manpower
• Protection of the interests of labour is the responsibility of the
State in the democratic countries.
• Under the Constitution of India, Labour is a subject in the
Concurrent List where both the Central and the State
Governments are competent to enact legislations subject to
certain matters being reserved for the Centre.
• Union List includes:-
– (i) Regulation of labour and safety in mines and oil fields;
– (ii) Industrial disputes concerning Union employees; and
– (iii) Union agencies and institutions for "vocational. training.".
• While, the concurrent List includes:-
– (i) Trade Unions; industrial and labour disputes;
– (ii) Social security and social insurance; employment and
unemployment; and (iii) Welfare of labour including conditions of
work, provident funds, employers' liability, workmen's
compensation, invalidity and old age pensions and maternity
benefit.
 Manpower
• Broadly, the Ministry has been allocated the work of:-
– Labour policy (including wage policy) and legislation.
– Safety, health and welfare of labour.
– Social security of labour.
– Policy relating to special target group such as women, child
labour.
– Industrial relations and enforcement of labour laws in the
Central sphere.
– Adjudication of industrial disputes through Central
Government Industrial Tribunals- cum-Labour Courts and
National Industrial Tribunals.
– Workers' Education.
– Labour and Employment Statistics.
– Employment Services and Vocational training.
– Administration of Central Labour & Employment Services.
– International Cooperation in Labour & Employment matters.
 Competition Protection
• The main legislation governing competition in India
is the Competition Act,2002 which repealed
the Monopolies and Restrictive Trade Practices
(MRTP) Act, 1969 and provided for a modern
framework of competition protection.
• The main objectives of the Act are:-
– (i) to provide for the establishment of a commission to
prevent practices having adverse effect on competition;
– (ii) to promote and sustain competition in markets in
India ;
– (iii) to protect the interests of consumers;
– (iv) to ensure freedom of trade carried on by the
participants in the markets in India and for related
matters.
Thank you