The Act was enacted to meet the obligations under the Convention on Biological Diversity, because India is a signatory to the treaty.
"[5] The National Biodiversity Authority (NBA) is a statutory autonomous body, headquartered in Chennai, under the Ministry of Environment and Forests, Government of India established in 2003 to implement the provisions under the Act.
[8] Result of research using biological resources from India cannot be transferred to a non-citizen or a foreign company without the permission of NBA.
[9] The NBA while granting such permission may make an order for benefit sharing or royalty based on utilisation of such protection.
[10] Benefit sharing out of usage of biological resources can be done in following manner: If a person, violates the regulatory provisions he/she will be "punishable with imprisonment for a term which may extend to five years, or with fine which may extend to ten lakh rupees and where the damage caused exceeds ten lakh rupees, fine may commensurate {be in proportion} with the damage caused, or with both.