rachit ppt

7/27/2019 rachit ppt

1/20


2/20

Presented By :

Atansha ChopraAyush BhushanwarChhavi Lahoti

Harsh GoyalOsheen KhandelwalRachit BhandariShreshtha Dalmiya


3/20


4/20

The Securities and Exchange Board ofIndia (frequently abbreviated SEBI) isthe regulator for the securities marketin India. It was established in the year1988 and given statutory powers on 12April 1992 through the SEBI Act, 1992
http://en.wikipedia.org/wiki/Regulatory_agencyhttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_India_Act,_1992http://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_India_Act,_1992http://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Regulatory_agency


5/20

Functions and

ResponsibilityTHE PREAMBLE OF THE SECURITIES AND EXCHANGEBOARD OF INDIA DESCRIBES THE BASIC FUNCTIONS

OF THE SECURITIES AND EXCHANGE BOARD OFINDIA AS "...TO PROTECT THE INTERESTS OFINVESTORS IN SECURITIES AND TO PROMOTE THEDEVELOPMENT OF, AND TO REGULATE THESECURITIES MARKET AND FOR MATTERS CONNECTEDTHEREWITH OR INCIDENTAL THERETO".


6/20

SEBI has to be responsive to the needsof three groups, which constitute the

market:

the issuers of securities

the investors

the market intermediaries.


7/20

SEBI has three functions rolled into one body:quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its legislative

capacity, it conducts investigation andenforcement action in its executive functionand it passes rulings and orders in its judicialcapacity. Though this makes it very powerful,there is an appeal process to createaccountability. There is a Securities AppellateTribunal which is a three-member tribunal and ispresently headed by a former Chief Justice of aHigh court - Mr. Justice NK Sodhi. A secondappeal lies directly to the Supreme Court.
http://en.wikipedia.org/wiki/Quasi-legislativehttp://en.wikipedia.org/wiki/Quasi-judicialhttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Quasi-judicialhttp://en.wikipedia.org/wiki/Quasi-judicialhttp://en.wikipedia.org/wiki/Quasi-judicialhttp://en.wikipedia.org/wiki/Quasi-legislativehttp://en.wikipedia.org/wiki/Quasi-legislativehttp://en.wikipedia.org/wiki/Quasi-legislative


8/20

Powers

For the discharge of its functions efficiently, SEBI has

been vested with the following powers: to approve bylaws of stock exchanges.sebi

to require the stock exchange to amend their bylaws.

inspect the books of accounts and call for periodicalreturns from recognized stock exchanges.

inspect the books of accounts of a financialintermediaries.

compel certain companies to list their shares in one ormore stock exchanges.

registration brokers.


9/20

SEBI Committees

Technical Advisory Committee

Committee for review of structure of market infrastructure institution

Members of the Advisory Committee for the SEBI Investor Protectionand Education Fund

Takeover Regulations Advisory Committee

Primary Market Advisory Committee (PMAC) Secondary Market Advisory Committee (SMAC)

Mutual Fund Advisory Committee

Corporate Bonds & Securitization Advisory Committee


10/20


11/20

INTRODUCTION

The IRDA (Insurance regulatory and development authority) is tnational regulatory body for insurance industry both life and nlife under the auspices Government of India, situated in

Hyderabad.

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory anDevelopment Authority (IRDA, which was constituted by an of parliament) specify the composition of Authority.

The Authority is a ten member team consisting of

a. a Chairman;

b. five whole-time members;

c. four part-time members,

(all appointed by the Government of India)


12/20

MISSION

To protect the interests of the policyholders.

To promote, regulate and ensure orderly growth of the insurance

sector and for the matters connected therewith or incidental thereto.

Conduction of insurance sector in India in an ethical manner.


13/20

ROLE OF IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and

functions of IRDA.

1. Subject to the provisions of this Act and any other law for thetime being in force, the Authority shall have the duty to regulatepromote and ensure orderly growth of the insurance business anre-insurance business.

2. Without prejudice to the generality of the provisions contained insub-section (1), the powers and functions of the Authority shallinclude:

a. issue to the applicant a certificate of registration, renew,modify, withdraw, suspend or cancel such registration;


14/20

b. protection of the interests of the policy holders in matters

concerning assigning of policy, nomination by policy holders,

insurable interest, settlement of insurance claim, surrender val

of policy and other terms and conditions of contracts of

insurance;

c. specifying requisite qualifications, code of conduct and practi

training for intermediary or insurance intermediaries and agen

d. specifying the code of conduct for surveyors and loss assesso

e. promoting efficiency in the conduct of insurance business;

f. specifying the form and manner in which books of account sh

be maintained and statement of accounts shall be rendered by

insurers and other insurance intermediaries;

g. regulating investment of funds by insurance companies;


15/20

h. regulating maintenance of margin of solvency;

i. adjudication of disputes between insurers and intermediaries oinsurance intermediaries;

j. supervising the functioning of the Tariff Advisory Committee;

k. Regulating investment of funds by insurance companies;l. Regulating maintenance of margin of solvency;

m. Adjudication of disputes between insurers and intermediaries insurance intermediaries;

n. Specifying the percentage of premium income of the insurer tofinance schemes for promoting and regulating professional

organizations referred to in clauseo. Specifying the percentage of life insurance business and gener

insurance business to be undertaken by the insurer in the ruralsocial sector;

p. Exercising such other powers as may be prescribed

SUPPORTING ORGANISATIONS


16/20

SUPPORTING ORGANISATIONS

1. Tariff Advisory CommitteeThe main task of Tariff Advisory Committee is to regulate andcontrol the rates, benefits,terms and conditions offered by life insurance companies inIndia.

2. Insurance Association of IndiaAll insurance companies in India are members of the InsurancAssociation of India. It has two councils under its patronage,mainlya. Life Insurance Council

b. General Insurance Council

3. OmbudsmenOmbudsmen play important role in regulating and ensuringsmooth functions of the insurance companies. They are appoito address all complaints relating to settlements of claims.Anyone having a grievance against an insurance company canapproach Ombudsmen for redressal.


17/20

NEW GUIDELINES AND EFFECTS

Lock in for Five Years and Premium Payment Term: Minimumlock-in period has been revised from the current 3 years to 5 years and

barring single premium policies, the minimum payment term has alsobeen raised to 5 pay.

Increase in Minimum Sum Assured: The minimum sum assuredmultiple has been increased to 10 times for age at entry below 45 yearand 7 times for age at entry above 45 years. At no time can the sumassured be less than 105 per cent of total premium paid including top

ups. All top ups also must have life insurance cover built into them.

Net Reduction in Yield for Every Year from Year 5: This newguideline stipulates the maximum net reduction in yield every yearfrom 5th year. It is primarily an extension of the earlier stipulation ofmaximum net reduction in yield of 3% for policy term up to 10 yearsand 2.25% for policy term above 10 years.


18/20

Cap on Discontinuance Charge: IRDA has introduced a cap onsurrender charge, now termed as policy discontinuance charge,basis the year of discontinuance and annual premium. Thisallows life insurers to charge only a small penalty on earlysurrender of policy.

Modifications in Unit Linked Pension Products : Partialwithdrawals in Unit Linked Pension products will not beallowed. On maturity, one third of the corpus could be taken aslump sum and rest must be used for buying annuities. Thischange will ensure a larger corpus is collected and used forretirement planning and not for other life stage needs.IRDA hasalso made it mandatory that all unit linked pension products mustoffer minimum guaranteed return which would be specified byIRDA from time to time.Even spread of charges during the lock-in period. The new guidelines stipulate that the overall charges inULIPs should be spread evenly over the lock-in period of 5years.


19/20

IRDA IN NEWS

4 sept 2012

Insurance regulator IRDA recently slapped a penalty of Rs 49 lakh on Tata-AIGLife Insurance Company for violation of various regulatory norms.

The Insurance Regulatory and Development Authority (IRDA) has found lapsesin various rules, including non-adherence to norms of referrals and preparationof financial statements, by the life insurance company.

"...I hereby direct the insurer (Tata-AIG Life Insurance Company) to remit thepenalty of Rs 49 lakh debiting shareholder's account within 15 days," IRDAChairman J Hari Narayan said in his order.

The penalty follows an on-site inspection of Tata-AIG in August, 2010, during

which the regulator found violations of the provisions and guidelines of theInsurance Act.

The insurance company could not be contacted for comments.

The regulator said Tata AIG Life has made certain payments to HSBC Bank andCitibank banks in violation of IRDA's guidelines on Group Insurance policies.

The life insurer, IRDA said, was also been found violating the provisions of thenorms while entering into referrals arrangement with non-banking entities and

utilising unlicensed entities.


20/20

THANK YOU

rachit ppt

Documents