Indian Regulatory Framework Chapter 1

Questions and Answers

What is the primary objective of the chapter on Indian Regulatory Framework?

To comprehend the meaning of law and its sources

Which of the following is NOT a type of law in the Indian Legal System?

International Law

Which Ministry is responsible for overseeing the financial sector in India?

Ministry of Finance

What is the primary function of SEBI?

To oversee the stock market and securities in India Signup and view all the answers

Which of the following is NOT a major regulatory body in India?

National Human Rights Commission Signup and view all the answers

What is the process of making a law referred to as?

Lawmaking Signup and view all the answers

Which of the following is a principle of Natural Justice?

Audi Alteram Partem Signup and view all the answers

What is the primary role of the Ministry of Law and Justice?

To oversee the enforcement of law in India Signup and view all the answers

Why is awareness of law essential for a Chartered Accountant?

To advise management and clients on legal matters Signup and view all the answers

What is the purpose of a regulatory framework?

To provide a set of uniform rules and regulations Signup and view all the answers

What is the name of the oldest law in written form?

Code of Hammurabi Signup and view all the answers

Who ruled Babylon from 1792 BC to 1758 BC?

King Hammurabi Signup and view all the answers

Where is the law notified by the Government?

Official Gazette of India Signup and view all the answers

What is the main focus of Civil Law?

Dispute resolution Signup and view all the answers

What is the primary function of the Ministry of Finance?

Concerning itself with the economy of India Signup and view all the answers

What did King Hammurabi carve the code on?

Bulky stone slabs Signup and view all the answers

Why did King Hammurabi place the stones on different places all over the city?

To display the code publicly Signup and view all the answers

Which of the following is an example of criminal offences?

Fraud Signup and view all the answers

What is the Ministry of Finance also known as?

The Treasury of India Signup and view all the answers

What did King Hammurabi appoint to check whether public is following the laws or not?

Judges Signup and view all the answers

What is the primary function of the Code of Civil Procedure?

Administration of civil law Signup and view all the answers

Who is typically responsible for presenting the Union Budget?

The Minister of Finance Signup and view all the answers

What is the Central Board for Direct Taxes responsible for?

Implementing the Income Tax Act Signup and view all the answers

Why do you need to study law as a Chartered Accountant?

Because you need to advise management and clients on legal matters at a basic level Signup and view all the answers

What is the Indian Penal Code concerned with?

Definition of crimes and punishments Signup and view all the answers

What is the Code of Criminal Procedure concerned with?

Procedure for executing punishments Signup and view all the answers

What is the main role of a Ministry in the Government of India?

To implement laws and regulations Signup and view all the answers

What is the result of notification and effective date of the law?

It becomes an Act of Parliament Signup and view all the answers

Who is accountable for the actions of a Ministry?

The Cabinet Minister Signup and view all the answers

What is the classification of laws that deals with violations of the rule of law or public wrongs?

Criminal Law Signup and view all the answers

What is the role of the Minister of State in a Ministry?

To support the Cabinet Minister Signup and view all the answers

What is the significance of the Union Budget?

It provides for the rates of taxes and budget allocations Signup and view all the answers

Which of the following is the highest post in the Ministry of Corporate Affairs?

Director General of Corporate Affairs Signup and view all the answers

What is the main responsibility of the Ministry of Home Affairs?

Maintenance of internal security and domestic policy Signup and view all the answers

Which department is concerned with advising the various Ministries of the Central Government?

Department of Legal Affairs Signup and view all the answers

Which department is responsible for drafting of principal legislation for the Central Government?

Legislative Department Signup and view all the answers

Which department is responsible for the administration of justice in India?

Department of Justice Signup and view all the answers

Who heads the Ministry of Home Affairs?

Union Minister of Home Affairs Signup and view all the answers

Which department is concerned with the management of the legal affairs?

Ministry of Law and Justice Signup and view all the answers

Study Notes

Importance of Law for Chartered Accountants

Awareness of law is essential for Chartered Accountants to advise management and clients on legal matters
Tax laws are also laws, and a basic awareness of the legal and regulatory framework is necessary to become an expert in taxation

Sources of Law

"Code of Hammurabi" is considered the oldest law in written form, dating back to 1792-1758 BC
Laws are notified by the Government in the Official Gazette of India and become applicable from the date mentioned in the notification
Laws are enforced by the Government through various Ministries and Departments

Types of Laws in the Indian Legal System

Criminal Law: deals with violations of the rule of law or public wrongs and punishment, governed by the Indian Penal Code, 1860, and the Code of Criminal Procedure, 1973
Civil Law: deals with disputes between individuals or organisations, focuses on dispute resolution rather than punishment, governed by the Code of Civil Procedure, 1908
Common Law: based on Principles of Natural Justice

Major Regulatory Bodies

Ministry of Finance: concerned with the economy of India, taxation, financial legislation, financial institutions, capital markets, centre and state finances, and the Union Budget
Ministry of Corporate Affairs (MCA): primarily concerned with administration of the Companies Act, 2013, and the Limited Liability Partnership Act, 2008
Securities and Exchange Board of India (SEBI): responsible for regulating the Indian capital markets and securities industry
Reserve Bank of India (RBI): responsible for regulating the Indian banking and financial system
Insolvency and Bankruptcy Board of India (IBBI): responsible for regulating and implementing the Insolvency and Bankruptcy Code, 2016
Ministry of Law and Justice: deals with the management of legal affairs, legislative activities, and administration of justice in India

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Description

Understand the Indian regulatory framework, including the meaning and sources of law, types of laws, enforcement, and major regulatory bodies such as RBI and SEBI.