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CMA Final · Corporate and Economic Laws · Specific Legal Provisions related to MSME Sector

Under the MSMED Act, 2006, which authority may notify preference policies for procurement of goods and services produced and provided by micro and small enterprises, covering Ministries, departments, aided institutions and public sector enterprises?

The Central Government or the State Government may notify procurement preference policies for micro and small enterprises by order from time to time. These policies apply to their Ministries, departments, aided institutions and public sector enterprises, as provided in section 11 of the MSMED Act, 2006.

  1. AOnly the Reserve Bank of India
  2. BOnly the Securities and Exchange Board of India
  3. CThe Central Government or the State Government, by notified orderCorrect
  4. DOnly the National Board for Micro, Small and Medium Enterprises

Explanation

Section 11 empowers the Central Government or the State Government to notify, by order from time to time, preference policies for procurement from micro and small enterprises. The RBI, SEBI and the Board are not given this power in that section.

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