Page 82 - DMGT401Business Environment

Unit 2: Industrial Policy and Regulatory Structure

GDP: Gross Domestic Product of an economy; indicator of economic growth Notes
IDBI: Industrial Development Bank of India
Industrial Licensing: Tool to regulate private sector industries
Monopoly: Where single seller dominates the market

MRTP Act: Monopolies and Restrictive Trade Practices Act
OCTEI: Exchange for small sized companies and small investors
Planned Economy: Where proper planning takes place and expenditures are planned
Sick Units: Business units which are generating no profits or less revenue

Stock Brokers: Members of recognised stock exchanges who deal in securities
Stock Exchange: Any body of individuals, whether incorporated or not, constituted for the
regulating the capital market

Sub Brokers: Acts as an agent of a stock broker; assists him

2.8 Self Assessment

State whether the following statements are true or false:
1. One of the purposes of the industrial policy is to increase the number of entrepreneurs
India.
2. The Industrial policy of 1948 propagated that foreign capital inflow should be minimised.
3. Under the Industrial Policy of 1956, machine tools and tools steel industry was left only
for private sector.
4. New Industrial Policy allowed a 51% FDI in the hospitality sector also.
5. A stock exchange acts a regulator of the capital market.
6. SEBI is an autonomous body that controls the monetary policy of the government.

7. All the companies listed under a stock exchange have to compulsorily offer their securities
to public.
8. Privatisation may refer to full or even part purchase of any business by private players.

Fill in the blanks:
9. …………………………regulates the Securities Exchange Board of India.
10. The problem of unequal distribution of income and wealth was first dealt in Industry
Policy of………………..
11. Under Industrial Policy of………………, a separate wing of IDBI was established to feed
the credit requirements of small scale industries.

12. Stocks of all the blue-chip companies are listed and traded in…………………
13. ………………..was created as a company in 1990 under the Companies Act.
14. When the share market goes up, it is represented by the…………….

15. Indian stock market is called the…………………
16. When government leases its assets to a private company, it transfers it
the……………….ownership.

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