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• To ensure that the operation of the economic system does not result in the concentration of economic power in hands of few,

• To provide for the control of monopolies, and

• To prohibit monopolistic and restrictive trade practices.

The MRTP Act extends to the whole of India except Jammu and Kashmir.

Unless the Central Government otherwise directs, this act shall not apply to:

1. Any undertaking owned or controlled by the Government Company,

2. Any undertaking owned or controlled by the Government,

3. Any undertaking owned or controlled by a corporation (not being a company established by or under any Central, Provincial or State Act,

4. Any trade union or other association of workmen or employees formed for their own reasonable protection as such workmen or employees,

5. Any undertaking engaged in an industry, the management of which has been taken over by any person or body of persons under powers by the Central Government,

6. Any undertaking owned by a co-operative society formed and registered under any Central, Provincial or state Act,

7. Any financial institution.