Final ppt of financial mgmt

FINANCIAL REFORMS IN INDIA 2000-2005

SUBMITTED TO :-VIDHYA TELANG MAM

SUBMITTED BY:-AMRIN JAHANARADHANA SINGHPAYAL THARANIPOOJA PATIDARPOOJA KABRAPRATEEK GOSWAMI

CONTENTS

Introduction Economic development in India. Financial sector reforms:- FOREX market reforms List of various act :- PMLA act 2005 IDBI act 2003 SEZ act 2005 National Tax Tribunal act Conclusion

INTRODUCTION

India’s financial sector is diversified and expanding rapidly.

It comprises commercial banks, insurance companies ,non- banking financial companies, cooperatives , pensions funds, mutual funds and other smaller financial entities.

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Ours is a bank dominated financial sector and commercial banks accounts for over 60 % of the total assets of the financial system followed by the insurance sector .

Other bank intermediaries include RRB and cooperative bank that target under serviced rural and urban populations.

Economic development in India

The economic development in India followed socialist-inspired policies for most of its independent history, including state-ownership of many sectors; India's per capita income increased at only around 1% annualised rate in the three decades after Independence.

Financial sector reforms

Reforms of security interest laws in India in particular, the passing of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest act 2002 (SARFAESI)

In June 2004 the existing limits on unsecured exposure(unsecured advances as a ratio of total advances, which stood at 15% )of banks were withdrawn this enabled banks to set their own limits on unsecured exposures.

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The investment limit in plant and machinery for various good which figure in the list of goods reserved for manufacturing in SSI sector increased from time to time.

For e.g....on June 12 2004 for sport goods it was in increased from 1 crore to 5 crore

In Aug 2005 banks were allowed to extend financial assistance to Indian companies for acquisition of equity in over seas joint venture wholly owned subsidiaries or other over seas companies.

Forex market reform

During 2003-04 the average monthly turnover in the Indian foreign exchange market touched about 175 billion us $ .

Since 2001 ,clearing and settlement function in the foreign exchange market are largely carried out by clearing corporation of India limited that handle transaction of approximately 3.5 billion dollar a day, about 80% of the total transaction

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Since the mid-1980s, India has slowly opened up its markets through economic liberalisation.

After more fundamental reforms since 1991 and their renewal in the 2000s, India has progressed towards a free market economy

List of various act (2000-2005)

Prevention of money laundering act 2002.

Industrial development bank act 2003.

Special Economic Zone(SEZ) act 2005.

National tax tribunal act 2005.

Process of prevention of money laundering

PREVENTION OF MONEY-LAUNDRING ACT 2002

Introduction:- An Act to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto.

Citation :- Act no. 15 of 2003

Enacted by:- Parliament of India

Date enacted:- 17 January 2003

Date assented to:- 17 January 2003

Date commenced:- 1 July 2005

The Prevention of Money Laundering (Amendment) Act, 2005

The Prevention of Money Laundering (Amendment) Act, 2009

 The Prevention of Money Laundering (Amendment) Act , 2013.

Amendments:-

INDUSTRIAL DEVELOPMENT BANK ACT 2003

IDBI Bank Limited is an Indian financial service company headquartered Mumbai, India.

RBI categorised IDBI as an "other public sector bank".

It was established in 1964 by an Act of Parliament to provide credit and other facilities for the development of the fledgling Indian industry.

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It is currently 10th largest development bank in the world in terms of reach with 1945 ATMs, 1159 branches including one overseas branch at DIFC, Dubai and 779 centres including two overseas centres at Singapore & Beijing.

IDBI Bank is on a par with nationalized banks and the SBI Group as far as government ownership is concerned. It is one among the 26 commercial banks owned by the Government of India

List of Institutions built by IDBI:-• Securities and Exchange Board of India (SEBI)• National Stock Exchange of India(NSE).• National Securities Depository Limited(NSDL)• The Stock Holding Corporation of India

Limited (SHCIL)• Credit Analysis & Research Limited• Export Import Bank of India (EXIM)• Small Industries Development Bank of India

(SIDBI).

SEZ ACT 2005

A Special Economic zone (SEZ) is a geographical region that is designed to export goods and provide employment. SEZs are exempt from federal laws regarding taxes, quotas, FDI-bans, labour laws and other restrictive laws in order to make the goods manufactured in the SEZ at a globally competitive price.

The category SEZ includes free trade zones (FTZ), export processing Zones (EPZ), free Zones (FZ), industrial parks or industrial estates (IE), free ports, free economic zones, and urban enterprise zones

NATIONAL TAX TRIBUAL ACT 2005

An Act to provide for the adjudication by the National Tax Tribunal of disputes with respect to levy, assessment, collection and enforcement of direct taxes and also to provide for the adjudication by that Tribunal of disputes with respect to the determination of the rates of duties of customs and central excise on goods and the valuation of goods for the purposes of assessment of such duties as well as in matters relating to levy of tax on service, in pursuance of article 323B of the Constitution and for matters connected therewith or incidental thereto.

Conclusion

The reforms currently underway in the banking sector and in the capital market, combined with the agenda for reform identified for the insurance sector, represent a major structural overhaul of the financial system. It will certainly bring India=s financial system much closer to what is expected of developing countries as they integrate with the world economy. As in so many other areas, reforms in the financial sector have been of the gradualist variety, with changes being made only after much discussion and over a somewhat longer period than attempted in most other countries. However the direction of change has been steady and in retrospect a great deal has been accomplished in the past seven years. It is essential to continue these reforms along the directions already indicated and to accelerate the pace of change as much as possible.

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Finally, it is important to recognise that financial sector reforms by themselves cannot guarantee good economic performance. That depends upon a number of other factors, including especially the maintenance of a favourable macro economic environment and the pursuit of much needed economic reforms in other parts of the real economy. The impact of financial sector reforms in accelerating growth will be maximised if combined with progress in economic reforms in other areas.