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What is the primary purpose of the Foreign Contribution (Regulation) Act, 2010 in India?
  • a)
    To facilitate foreign investments in Indian businesses
  • b)
    To manage and regulate foreign contributions to NGOs and other entities
  • c)
    To promote international trade agreements
  • d)
    To restrict foreign ownership of Indian land
Correct answer is option 'B'. Can you explain this answer?
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What is the primary purpose of the Foreign Contribution (Regulation) A...
The primary purpose of the Foreign Contribution (Regulation) Act, 2010 is to manage and regulate foreign contributions made to NGOs and other entities within India. This Act aims to prevent foreign entities from influencing Indian politics and societal discussions for improper purposes. It establishes registration requirements and spending limitations for organizations receiving foreign donations, ensuring that such contributions are used for intended purposes only. An interesting fact is that this Act originally came into existence in 1976 but was significantly amended in 2010 to tighten regulations and enhance transparency.
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Directions: Kindly read the passage carefully and answer the questions given beside.India has a flourishing fintech ecosystem and the UK’s strength in tech, digital trade and investment provides much scope for collaboration. There are now more than 250,000 operations and technology professionals in India working directly for the UK financial services sector. The creation of international fintech bridges (five currently) have helped to ease cross border friction and support businesses to scale up. Fintech businesses need access to top talent and skills from financial experts to data analysts and this is being enabled by the UK government’s rollout of visas, including the new Scaleup visa and Migration and Mobility partnership with India. As we approach the conclusion of UK-India trade deal talks both UK and Indian businesses need to make commitments that will unlock investment such as greater financial regulatory cooperation, actions to enable smoother digital trade and free flow of data, ease in movement of people, recognition for UK and Indian professional qualifications, and strong investment protection provisions for UK businesses operating in India. Both sides have made great progress in these areas.The UK is the sixth largest investor in India, whilst India stands as the second largest investor in the UK. This investment relationship supports over half a million jobs across both economies. Meanwhile The London Stock Exchange is the leading international listing venue for rupee denominated bonds, having listed 48 bonds which have raised $7.16 billion. At a time when much of the world is seeing the rise of geopolitical tensions, the UK and India have decided to pursue a different path of cooperation, peace and low carbon growth. On green finance, for India to achieve its net zero targets, it will need to unlock the private capital. This is an area where the UK’s world leading expertise in green finance can assist.Q.Which of the following provides the most accurate explanation of the primary conclusion drawn from the argument above?

Read the passage and answer the question based on it.Last week, a series of investigative reports revealed that the far-right government of Narendra Modi had opened windows for the purchase of electoral bonds to fund political parties on six occasions, two more than the permitted number. This happened in two consecutive years. The government also relaxed rules and permitted the cashing of many of these bonds after the time limit Both left parties and the Election Commission of India (ECI) have expressed the concern that the electoral bonds will allow foreign companies and international finance to pour unlimited funds intoIndian political parties through shell companies. The reports were based on documents obtained by RTI activist Commodore Lokesh Batra (Retd.). Earlier, any donation in excess of Rs. 20,000 (USD 279.75) was to be listed out in a Contribution Report, which every political party is obliged to prepare by the end of each financial year. Now, thishas been amended to exempt donations received through electoral bonds. Similarly, while introducing the scheme, another law was amended that obliged companies to declare their political contributions. The companies earlier also had to disclose which party they were contributing to. Now, they just have to disclose the amount and not the name of the party. Most importantly, earlier laws ensured that a company could not donate over 7.5% of its average profit over three years to political parties. This was to ensure that money would not be routed through shell companies to political parties. Even this cap has been removed. India’s election commission has warned that this could lead to a huge inflow of black money into the electoral process. The new scheme can also help foreign corporations, who have no legitimate business in India, to route money through shell companies. The left in India has been consistently resisting this scheme. The Communist Party of India (Marxist) (CPI-M) fighting a case in the Supreme Court against the opaque funding mechanism. The party is now examining the possibility of filing an additional affidavit seeking an immediate stay on the use of the bonds till the final verdict is out. This is a battle for the very soul of democracy in India.Q.In the union budget which year, Electoral Bonds were introduced in the country?

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What is the primary purpose of the Foreign Contribution (Regulation) Act, 2010 in India?a) To facilitate foreign investments in Indian businessesb) To manage and regulate foreign contributions to NGOs and other entitiesc) To promote international trade agreementsd) To restrict foreign ownership of Indian landCorrect answer is option 'B'. Can you explain this answer?
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What is the primary purpose of the Foreign Contribution (Regulation) Act, 2010 in India?a) To facilitate foreign investments in Indian businessesb) To manage and regulate foreign contributions to NGOs and other entitiesc) To promote international trade agreementsd) To restrict foreign ownership of Indian landCorrect answer is option 'B'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about What is the primary purpose of the Foreign Contribution (Regulation) Act, 2010 in India?a) To facilitate foreign investments in Indian businessesb) To manage and regulate foreign contributions to NGOs and other entitiesc) To promote international trade agreementsd) To restrict foreign ownership of Indian landCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary purpose of the Foreign Contribution (Regulation) Act, 2010 in India?a) To facilitate foreign investments in Indian businessesb) To manage and regulate foreign contributions to NGOs and other entitiesc) To promote international trade agreementsd) To restrict foreign ownership of Indian landCorrect answer is option 'B'. Can you explain this answer?.
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