This research is an exiguous endeavour to highlight the rules and regulations related to trade regulation and promotion of market competition provided under the greatest work of Kautilya, the Arthashastra. Firstly, the paper highlights the features of trade and market during the periods of Guptas. Further, the paper discusses the laws made by Kautilya to maintain competition in the market and prevent abuse of monopoly in that era. It also explains the concept of merchant guilds in the Gupta Empire and how these guilds remain in control of the Kings. This paper in its present visage endeavours to attest the fact that how Arthashastra is an elixir of laws and regulations governing trade and commerce, aimed at maintaining fair competition, preventing monopolies, and protecting the interests of traders and consumers and further put forth a comparative analysis of the various provisions which can be moulded to be more effective with the help of an analysis made.