Economics regulation of domestic and foreign exchange market.National board of Micro, small and medium enterprises.Advisory committee,Memorandum of MSME,Measures for promotion and enhancement of competitiveness of MSME. Ramanujan college , university of Delhi

1. Presented by:
Shashank 1228
Sangeeta 1246
Pooja sharma 1248
Anjali panday 1404
Sachin 1488

2. 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

3. SR.NO TOPIC TO BE COVERED IN PRESENTATION
1. National board of Micro, small and medium enterprises
2. Advisory committee
3. Memorandum of MSME
4. Measures for promotion and enhancement of
competitiveness of MSME.

4. 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

5. 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.

6. • 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

7.  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

8.  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.

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

10. 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

11. 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.

12. (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

13. (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.

14. (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

15. 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).

17. 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

18. 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.

19. 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.

20. 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

21. 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