PAPER :1. The Rationale of Government Regulation :1.1 Constitutional perspectives1.

2 The new economic policy Industrial policy resolutions, declarations and statements1.3 The place of public, small scale, co-operative, corporate, private and joint sectors - in thechanging context.1.4 Regulation of information1.5 Disclosure of information1.6 Fairness in competition1.7 Emphasis on co nsumerism2. Development and Regulation of Industries3. Take-over of Management and Control of Industrial Units4. Sick Undertakings : Nationalization or Winding Up ?5. Critical Issues Regarding the Capital Issues5.1 Equity and debt finance5.2 Global depositories5.3 De-materialized securities6. Problems of Control and Accountability : Regulation of Hazardous Activity6.1 Mass disaster and environmental degradation : legal liability and legal remedies6.2 Public Liability Insurance : adequacy6.3 Issues in zoning and location of industrial units7. Legal Regulation of Multi Nationals7.1 Collaboration agreements for technology transfer

7.2 Development and regulation of foreign investments7.3 Investment in India : FDIs and NRIs7.4 Investment abroad 1. The Rationale of Government Regulation : In India there are several Acts and legislations enacted by the Government of Indiafor regulation of industries in the country. These enactments play a very importantrole in the country's overall progress and economic development. These legislationsare amended from time to time in accordance with the changing circumstances andenvironment. The most important Act is the Companies Act,1956 which relates tosetting up and operation of companies in India. It empowers the CentralGovernment to regulate the formation, financing, functioning and winding up of companies. It contains the mechanism regarding organisational, financial,managerial and all the relevant aspects of a company.In

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order to provide the Central Government with the means to implement itsindustrial policies, several legislations have been enacted. The most importantbeing the Industries (Development and Regulation) Act, 1951 (IDRA). The mainobjectives of the Act is to empower the Government to take necessary steps for thedevelopment of industries; to regulate the pattern and direction of industrialdevelopment; and to control the activities, performance and results of industrialundertakings in the public interest. The bulk of the transactions in trade, commerce and industry are based oncontracts. In India, the Indian Contract Act,1872 is the governing legislation forcontracts, which lays down the general principles relating to formation,performance and enforceability of contracts and the rules relating to certain specialtypes of contracts like Indemnity and Guarantee; Bailment and Pledge; as well asAgency.Another important aspect of legislations is the industrial relations, which involvesvarious aspects of interactions between the employer and the employees; amongthe employees as well as between the employers. In such relations whenever thereis a clash of interest, it may result in dissatisfaction for either of the partiesinvolved and hence lead to industrial disputes or conflicts. The Industrial DisputesAct, 1947 is the main legislation for investigation and settlement of all industrialdisputes. The Act enumerates the contingencies when a strike or lock-out can belawfully resorted to, when they can be declared illegal or unlawful, conditions forlaying off, retrenching, discharging or dismissing a workman, circumstances under which an industrial unit can be closed down and several other matters related toindustrial employees and employer

which an industrial unit can be closed down and several other matters related toindustrial employees and employers.Trade unions are also an important part of an industrial set up. The legislationregulating these trade unions is the Indian Trade Unions Act, 1926 . The Act dealswith the registration of trade unions, their rights, their liabilities and responsibilitiesas well as ensures that their funds are utilised properly. It gives legal and corporatestatus to the registered trade unions. It also seeks to protect them from civil orcriminal prosecution so that they could carry on their legitimate activities for thebenefit of the working class.An entrepreneur has to take into account the basic regulatory requirements of thecountry in order to ensure sustainability of the profits and productivity of his/herbusiness. The most important regulation relates to the environment. Theenvironmental regulatory requirements envisage a wide

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legislative frameworkcovering every aspect of environment protection. Broadly, it includes the emissionstandards for air, noise, water, etc. Separate set of laws for emission of hazardouswastes have also been enacted. Every industry has to abide by these guidelines andparameters for environmental protection.An organization for its smooth and effective functioning, must ensure health andsafety of its employees. The major legislations relating to Occupational Health andSafety in India are:- the Factories Act, 1948; the Mines Act, 1952 and the DockWorkers (Safety, Health & Welfare) Act, 1986. The Directorate General of MinesSafety (DGMS) and the Directorate General of Factory Advice Service and LabourInstitutes (DGFASLI) are the two field organisations of the Ministry of Labour andEmployment in the area of occupational safety and health in mines, factories andports. Besides, the Government of India has taken steps like, announcing a competitionpolicy, enacting Competition Act, 2002 and setting up of Competition Commissionof India , in order to ensure a healthy and fair competition in the market economy.These aim to prohibit the anti-competitive business practices, abuse of dominanceby an enterprise as well as regulate various business combinations like mergers andacquisitions.For regulation of the export and import of goods and services an entrepreneur hasto abide by the Foreign Trade (Development and Regulation) Act, 1992 and theEXIM policy announced by the Government from time to time. The Ministry of Commerce and Industry is the most important organ concerned with the promotionand regulation of the foreign trade in India. The Ministry has an elaborateorganizational set up to look after the various aspects of trade. Within the Ministry,the Department of Commerce is responsible for formulating and implementing theforeign trade policy
Laws relating to Specific Industries There are several legislations which regulate the conditions of employment, work environmentand other welfare requirements of certain specific industries. These enactments deal withfactories and workshops; mines and minerals; plantations; shops and establishments as well astransportation. Some of the major legislations are:The Factories Act,1948 is the umbrella legislation enacted to regulate the workingconditions in factories. According to the Act, a 'factory' means "any premises includingthe precincts thereof:- (i) whereon ten or more workers are working, or were working onany day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on; or (ii)whereon twenty or more workers are working working on any day of the preceding twelve months, and in any part of which a manufacturing process is beingcarried on without the aid of power, or is ordinarily so carried on; but this does notinclude a mine subject to the operation of the

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Mines Act, 1952 , or a mobile unit belonging to the armed forces of the union, a railway running shed or a hotel, restaurantor eating place."The Act is administered by the Ministry of Labour and Employment through its DirectorateGeneral Factory Advice Service & Labour Institutes (DGFASLI) and by the State Governmentsthrough their factory inspectorates. DGFASLI serves as a technical arm to assist the Ministry informulating national policies on occupational safety and health in factories and docks.

The P lantation Labour Act, 1951 provides for the welfare of plantation labour andregulates the conditions of work in plantations. According to the Act, the term 'plantation'means "any plantation to which this Act, whether wholly or in part, applies and includesoffices, hospitals, dispensaries, schools, and any other premises used for any purposeconnected with such plantation, but does not include any factory on the premises towhich the provisions of the Factories Act,1948 apply".The Act is administered by the Ministry of Labour through its Industrial Relations Division . TheDivision is concerned with improving the institutional framework for dispute settlement andamending labour laws relating to industrial relations. It works in close co-ordination withthe Central Industrial Relations Machinery (CIRM) in an effort to ensure that the country gets astable, dignified and efficient workforce, free from exploitation and capable of generating higher levels of output.

The Mines Act, 1952 contains provisions for measures relating to the health, safety andwelfare of workers in the coal, metalliferous and oil mines. According to the Act,the term'mine' means "any excavation where any operation for the purpose of searching for or obtaining minerals has been or is being carried

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on and includes all borings, bore holes, oilwells and accessory crude conditioning plants, shafts, opencast workings, conveyors or aerial ropeways, planes, machinery works, railways, tramways, slidings, workshops, power stations, etc. or any premises connected with mining operations and near or in the

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mining area" , or were

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