Page 90 - DMGT545_INTERNATIONAL_BUSINESS

Unit 5: Political and Economic Environment

5.3.6 consumer Product safety commission (cPsc) notes

Another powerful central agency was created in 1972 under the Consumer Product Safety Act.
The law created the Consumer Product Safety Commission, which was intended to protect
consumers from defective and dangerous products. In addition, Government wanted to unify
the majority of laws regarding product safety (except food, automobiles, and other products
already regulated by federal agencies) so that they would be effective and clear. The CPSC is
very powerful; it can ban products without a court hearing if they are deemed dangerous and can
order recalls, product redesigns, and the inspection of production plants. In more severe cases,
the CPSC may also charge officers, managers, and/or supervisors with criminal offenses.

Notes Another powerful central agency was created in 1972 under the Consumer
Product Safety Act. The law created the Consumer Product Safety Commission, which
was intended to protect consumers from defective and dangerous products.

5.3.7 central monetary regulatory agencies

Several federal agencies have been established to monitor monetary practices in the India,
including the Securities and Exchange Commission, the Central Reserve Board, and the Central
Deposit Insurance Corporation.

securities and exchange commission (sec)

The SEC was established to regulate the securities industries in the India. A quasi-regulatory
and judicial agency, the SEC regulates publicly traded stock-offering companies by requiring
them to issue annual and other financial reports. In addition, the SEC regulates the stock market,
brokers who sell securities, and large investment firms. The SEC also looks for insider trading,
such as trading on secret knowledge about a company, other white-collar crime that may affect
a company’s stock price, and securities fraud by stockbrokers. The agency can initiate civil or
criminal action against the individual or firms charged with securities violations. Depending
on the circumstances, the penalties levied by the SEC can be severe, with large fines and long
jail terms being the norm. The SEC normally works closely with the Justice Department when
criminal prosecution is involved. As always, the SEC’s actions can be appealed to the federal
courts if the individual or firm believes the charges are inaccurate or unjust.

central reserve Board

As the India grew, the nation’s banking system became more complex and subject to greater
fluctuations without government regulation. The India experienced an acute money panic in
1907 that put a severe strain on the banking system. As a result of the financial panic, a National
Monetary Commission was established by Government to study how the India could protect the
banking system and, in turn, the money supply. National Monetary Commission recommendations
were implemented by Government in 1913 when the Central Reserve Act was passed and the
Central Reserve Board was established. The primary purpose of the Central Reserve Board is to
function as a semi-independent board designed to protect the banking system in the India.

Did u know? SEC was founded in 1992 to regulate securities industries in India.

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