1) I have a 10 year valid B1/B2 visa, I plan to enroll in a one year MBA programe, i would like to know what is the procedure to transfer my visa from B1 to F1, OR is it that i have to apply for a fresh F1 visa.
You have two choices
a) Change your STATUS from tourist to student after you arrive in the USA. You will NOT get an F-1 visa, but you will have F-1 STATUS. This means that you will be in the USA as an F-1 student; however, if you leave the USA you will not be able to re-enter as a student because you will not have an F-1 visa.
b) Apply for an F-1 visa in your country.
2) Once i get my F1 visa, what happens to my B1 visa, would that be canceled
They should not cancel your B1 visa
3) After my completion of my course do i have to apply once again for my B1 visa.
No. Assuming it is still valid.
4) I am an Indian national but currently work in Kuwait, is there any restriction on us to apply for F1 visa from any other country other than from your country of origin? ( i got my B1 visa from Kuwait)
Same as B1. You just have to show a legitimate reason for applying in Kuwait. Being a legal resident of Kuwait who is working there should be a good enough reason.