Indian Regulatory Framework - CA Foundation Notes (Flashcards)

This set of flashcards covers key concepts from the Indian Regulatory Framework lecture notes, including sources of law, law-making processes, types of law, major regulatory bodies (SEBI, RBI, IBBI, MCA, MHA, MoLJ), the Ministry of Finance structure, insolvency framework (IBC/IBBI), and the Indian judiciary system (Supreme Court, High Courts, District/Metropolitan Courts, and jurisdictional concepts.

What is the oldest written code of law historically cited in the notes?

Code of Hammurabi (Babylon)

What are the 12 bronze tablets in Rome known as in the context of ancient law?

The Twelve Tables, the first detailed code of civil law

What are the main sources of law in India?

The Constitution, statutes enacted by Parliament and State Legislatures, precedents (judicial decisions), and customs/usages

Which body is the ultimate law-making authority in India for national laws?

Parliament; state legislatures make laws for their respective states

What are the three lists that distribute law-making powers in the Indian Constitution?

Central List, State List, and Joint List

What happens after a bill is discussed and passed by Parliament in India?

It must receive the assent of the President and be notified in the Official Gazette to become an Act

What is the sequence for enacting a law in India?

Bill → Lok Sabha passage → Rajya Sabha passage → President assent → Official Gazette notification (effective date)

Name the main branches of law described in the Indian legal system notes.

Criminal Law, Civil Law, and Common Law (with Principles of Natural Justice)

What codes govern Criminal Law in India?

Indian Penal Code (IPC), 1860 and Criminal Procedure Code (CrPC), 1973

What code governs Civil Law procedures in India?

Code of Civil Procedure (CPC), 1908; Civil Law also includes Law of Contract, Family Law, Property Law, and Law of Tort

What are the principles of Natural Justice mentioned in the notes?

Nemo judex in causa sua and audi alteram partem (no one should be a judge in his own cause; hear the other party)

Which ministry implements the Income Tax Act in India?

The Ministry of Finance, through the Department of Revenue and the CBDT

What are the five major departments under the Ministry of Finance?

Department of Economic Affairs (DEA), Department of Revenue (DoR), Department of Financial Services (DFS), Department of Investment & Public Asset Management (DIPAM), Department of Public Expenditure

What is the role of the Department of Economic Affairs (DEA) under MoF?

Formulates economic policies, prepares the Union Budget, manages foreign investments and external borrowings, engages with IMF/World Bank/G20

What is the function of the Department of Revenue (DoR) under MoF?

Administers direct taxes (CBDT) and indirect taxes (CBIC) and prevents tax evasion

What is the Department of Financial Services (DFS) responsible for?

Regulates banks, insurance, and pension sectors (PSBs, LIC, GIC)

What is the DIPAM under MoF responsible for?

Disinvestment of PSUs and management of Central Public Sector Enterprises (CPSEs)

What does the Insolvency and Bankruptcy Board of India (IBBI) regulate?

Insolvency Professionals (IPs), Insolvency Professional Agencies (IPAs), and Information Utilities (IUs) under the IBC, 2016

What are the main objectives of the Insolvency and Bankruptcy Code (IBC), 2016?

Time-bound insolvency resolution (180–270 days), creditor-driven resolution, and promoting entrepreneurship

Which tribunals handle insolvency matters under IBC?

National Company Law Tribunal (NCLT) for corporate insolvency; Debt Recovery Tribunal (DRT) for individual insolvency

What is SEBI and when was it given statutory powers?

Securities and Exchange Board of India; statutory powers granted by SEBI Act, 1992 (effective 30 Jan 1992)

What is the primary role of SEBI?

Regulate securities and commodity markets, protect investors, ensure transparency and fairness

What are the main monetary policy instruments used by RBI?

Repo rate, reverse repo rate, Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), and Open Market Operations (OMO)

What is the RBI’s role as currency issuer?

Prints and circulates currency notes (excluding ₹1 note issued by the Finance Ministry)

What is NPCI and which organization established it?

National Payments Corporation of India; established under RBI guidance to regulate payment systems

What is the difference between RBI and SEBI?

RBI: central bank, monetary policy, banking regulation; SEBI: regulator of securities market, investor protection

What is the structure of a typical Indian ministry?

Minister (Political Head) → Secretary (Administrative Head) → Additional Secretaries → Joint Secretaries → Directors → Deputy Secretaries; with attached/subordinate offices and autonomous bodies

What is the role of the Secretary in a ministry?

Principal advisor to the Minister; ensures policy implementation and coordination with PMO and other ministries

Name a few autonomous bodies and their general role.

RBI (central bank); UGC (higher education oversight); NITI Aayog (policy planning; attached to PMO)

What is the difference between District Courts and Metropolitan Courts?

District Courts handle civil and criminal matters across a district; Metropolitan Courts handle criminal matters only in metros (10+ lakh population)

What is the pecuniary jurisdiction of a civil judge?

Up to 2 crores; higher values go to a District Judge or higher court

What is the oldest High Court in India?

Calcutta High Court, established in 1862

What is Article 141 of the Constitution?

A Supreme Court decision is binding on all High Courts

What is Article 214?

There shall be a High Court in every state

What is Article 227?

High Court’s supervisory jurisdiction over subordinate courts; not an appellate power

What is the role of the Supreme Court in India’s judiciary?

Final arbiter; interprets laws; ensures constitutional validity; exercises Article 141 binding authority