ECONOMIC REGULATION OF DOMESTIC AND

FOREIGN EXCHANGE

MARKET Presented by:

Shashank 1228Sangeeta 1246

Pooja sharma 1248Anjali panday

1404Sachin 1488

ACKNOWLEDGEMENT

Firstly we would like to express our gratitude to our respectful ma’am for giving us this topic for our presentation as it gave us the opportunity to go beyond the book and look at the topic from a more practical point of view. It improved our understanding of this topic.

CONTENT SR.NO TOPIC TO BE COVERED IN PRESENTATION

1. National board of Micro, small and medium enterprises

2. Advisory committee3. Memorandum of MSME4. Measures for promotion and enhancement of

competitiveness of MSME.

SHARMA 1 NATIONAL BOARD FOR MICRO, SMALL AND MEDIUM ENTERPRISES

The chapter II sec 3 to sec 6 of MSMED act 2006 provides for establishment Of national board for micro small and medium enterprises and its functions etc . Accordingly to give effect to the formation of NBMSME rules per notified on 26 sept 2006 which provided procedure of the establishment of the board . Term of the members other than ex officio members limited to two years .

SHARMA 2

The national board for micro small and medium enterprises was established for the first time on 15 may 2007 consisting 47 members including chairman vice chairman and members secretary in accordance with sub section 1 of section 3 MSMED act2006 and national board for micro small and medium enterprises rules 2006. The ministry incharge of MSME is ex officio chairman of the national board.

SHARMA 3 SALIENT FEATURES O F THE NBMSME• NBMSME is consisting of 47 members

(18 ex officio and 29 members the tenure of the member is for 2 year from the date of notification).

• Has statutory backing .• Provides representation to all section

including association of micro small and medium manufacturing and service enterprises , women enterprises, central ministries, state representing different regions of the country, trade union etc.

• Quarterly meeting of the board mandatory as per MSMED act 2006 the board has made six times from the date of its establishment.

SHASHANK 1FUNCTIONS OF THE NATIONAL BOARD Examine the factors affecting the promotion and

development of micro, Small & medium Enterprises and review the policy and programme of the central govt in central govt in regard to facilitating the promotion and development and enhancing the competitiveness of such enterprises and the impact thereof on such enterprises .

Make recommendations on maters referred to in clause (a) above all any other matters referred to it by the central govt which, in the opinion of that government , is necessary or expedient for facilitating promotional and development and enhancing competitiveness of micro, small and medium enterprises.

Advice the Central Government on the use of the fund or funds constituted under section 12.

To provide advice to the central government or state government on issues relating to notifying any rule made to carry out the provision of the MSMED ACT 2006.

SANGEETA 1 ADVISORY COMMITTEE

It is a group of person having the right to make suggestions about what should be done and are able to give advice.

SANGEETA 2 Section 7(2) empowers the central

government to constitute an advisory committee consisting of the following members, namely:

(a) the Secretary of the ministry or department of the central government having adminstrative control of the small and medium enterprises as the chair person , ex-officio;

(b) not more than five officers of the central government possessing necessary expertise in matter related to micro, small and medium enterprise as member, ex-officio;

(c) not more than three representative of the state governments , as members, ex-officio

(d) one representative each of the associations of the micro , small and medium enterprises, as member , ex-officio.

SANGEETA 3

The Member – Secretary of the board shall also be the ex – officio Member Secretary of the Advisory Committee.

The Central Government has been put under obligation to obtain the recommendations of the advisory Committee.

The Central government has been put under obligation to obtain the recommendations of the Advisory Board before classifying any class or classes of enterprises.

SACHIN 1FUNCTIONS OF ADVISORY COMMITTEE

(a) To examine the matters referred to it by the board in connection with any subject referred to in section 5 and furnish its recommendations to the Board .

(b) To advise the Central Government on any of the matters specified in section 9,10,11,12 or 14 of chapter IV, dealing with measures for promotion , development and enhancement of competitiveness of micro small and medium enterprises .

Section9 deals with measures for promotion and development

Section10 deals with credit facilities, Section11 deals with procurement preference poling , Section 12 deals Fund Section14 deals with Administration and utilization of

fund .

SACHIN 2

(c ) To advise the state government on any of the matters specified in the rules made under section 30.Section 30 empowers the state government to make rules in respect of the composition of the micro and small enterprises facilitation council, the manner of filling vacancies of the members and the procedure to be followed in the discharge of their functions by the members of the micro and small enterprises Facilitation Council under sub section 3 of section 23.

SACHIN 3

(d) To communicate its recommendations or advice to the central government or ,State Government or the board after considering the following:

1. the level of employment in a class or classes of enterprises;

2. the level of investment in plant and machinery or equipment in

a class or classes of enterprise ; 3. the need of higher investment in plant and

machinery or equipment technological up-gradation, employment generation and enhanced competitiveness of the class or classes of enterprises;

4. the possibility of promoting and diffusing entrepreneurship in a micro , small and medium enterprise; and

5. the international standard for classification of small and medium enterprises.

SANGEETA 4MEMORANDUM OF MICRO, SMALL AND MEDIUM ENTERPRISES

Section 8 dealing with memorandum of micro, small and medium enterprises provides that any person who intends to establish a micro, small or medium enterprises or owns the same is required to file the memorandum of micro, small or , as the case may be of medium enterprise with such authority as may be specified by the state government under sub section(4) or the Central Government under sub section (3).

MEASURES FOR PROMOTION, DEVELOPMENT AND ENHANCEMENT OF MICRO AND MEDIUM ENTERPRISE

ANJALI 11.PROMOTION AND DEVELOPMENT

Section 9 empowers the central Government to specify programs, guidelines or instruction for facilitating the promotion and developments and enhancing the competitiveness of micro, small and medium enterprise, particularly of the micro and small enterprise. These measures may include development of skill in the employees, management and entrepreneurs, provisioning for technological up-gradation marketing assistance or infrastructure facilities and cluster development of such enterprises with a view to strengthening backward and forward linkage

ANJALI 22. CREDIT FACILITIES

Section 10 stipulates that the policies and practices in respect of credit to micro, small and medium enterprise should be progressive and such as may be specified in the guidelines or instructions issued by the reserve bank to ensure timely and smooth flow of credit, minimize the incidence of sickness and enhance the competitiveness of such enterprises.

ANJALI 33. PROCUREMENT PREFERENCE POLICY With a view to facilitates

promotion and development of micro and small enterprises, Section 11 requires the Central Government or the state Government to notify preference policies in respect of procurement of goods and services, produced and provided by micro and small enterprises.

ANJALI 4 4. FUNDS

Section 12 provides for the constitution of one or more funds and to credit thereto any grants made by the central government. Section 13 provides that the central government may credit to the fund or funds by way of grants such sum of money as may be considered necessary. Section14 empowers the central government to administer the funds in the prescribed manner .

Section14(2) stipulates that the fund or funds should be utilized exclusively for the specified manners. Section14(3) casts on the central government the responsibility for the coordination and ensuring timely utilization and release of sums in accordance with prescribed criteria

ANJALI 5