ORGANIZATIONS FACILITATING BUSINESS

After studying this chapter, you will be able to:

1. Describe the meaning of business facilitation.

2. Explain the need for organizational / institutional arrangements for stimulating, supporting and sustaining business.

3. Differentiate between funding and non-funding organisations.

4. Describe briefly the purpose, functions and schemes of some of the facilitating organizations.

SUMMARY

The financial system in India is regulated by independent regulators in the field of banking, insurance, capital market, commodities market, and pension funds. Government of India plays a significant role in controlling the financial system in India by influencing these regulators. Indian regulatory bodies like SEBI,RBI, IRDA, CCI and the Indian development banks like NABARD etc. are the key organizations that facilitate businesses in India.

♦ SEBI is an authority to regulate and develop the Indian capital market and protect the interest of investors in the capital market. Controller of Capital Issues has been repealed by the SEBI, an authority under Capital Issue (Control) Act, 1947.

♦ The Reserve Bank of India (RBI) is the Central Bank of our country. It occupies a pivotal position in the Indian economy. The RBI, being the Central Bank of India performs all the central banking functions. Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous apex statutory body which regulates and develops the insurance industry in India. It was constituted by a Parliament of India Act called Insurance Regulatory and Development Authority Act, 1999 and duly passed by the Government of India.

♦ Competition Commission of India is responsible for enforcing The Competition Act, 2002 throughout India and to prevent activities that have an appreciable adverse effect on competition in India.