Economic Reforms 1991 — Policy Reforms

Entry	Year	Description	Impact
FEMA Act 1999	1999	The Foreign Exchange Management Act (FEMA) replaced the Foreign Exchange Regulation Act (FERA) of 1973, shifting from a restrictive to a promotional approach toward foreign exchange transactions. FEMA facilitated external trade and payments while maintaining orderly development of foreign exchange markets.	FEMA enabled easier foreign exchange transactions, promoted foreign investment, and supported India's integration with global financial markets. It reduced bureaucratic hurdles and made India more attractive for international business.
SEBI Act 1992	1992	The Securities and Exchange Board of India Act established SEBI as the statutory regulator for securities markets, replacing the earlier Controller of Capital Issues system. SEBI was given powers to regulate stock exchanges, mutual funds, and other market intermediaries.	SEBI's establishment led to transparent, efficient capital markets with investor protection mechanisms. It enabled the growth of equity markets, mutual funds industry, and foreign institutional investment in India.
Competition Act 2002	2002	The Competition Act replaced the Monopolies and Restrictive Trade Practices Act of 1969, establishing the Competition Commission of India to prevent anti-competitive practices and promote competition in markets.	The Act created a modern competition framework suitable for a liberalized economy, preventing monopolistic practices while allowing businesses to grow based on efficiency rather than regulatory protection.