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SEBI

RBI

Presented By:SHRESTH KOTISH (47)

CHANDRA BHUSHAN SINGH(51)ANKITA MALHOTRA(53)

IRDA

www.sebi.gov.in

In 1988 the Securities and Exchange Board of India (SEBI) was established by the Government of India through an executive resolution, and was subsequently upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992.PREAMBLEThe Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as“…..to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto” 3

The Board shall consist of the following members, namely:-

a) a Chairman

b) Two members, One from amongst the officials of the Ministry of the Central Government dealing with Finance and second from administration of the Companies Act, 1956.

c) One member from amongst the officials of the Reserve Bank of India.

d) Five other members of whom at least three shall be the whole-time members to be appointed by the central Government .

The Board shall consist of the following members, namely:-

a) a Chairman

b) Two members, One from amongst the officials of the Ministry of the Central Government dealing with Finance and second from administration of the Companies Act, 1956.

c) One member from amongst the officials of the Reserve Bank of India.

d) Five other members of whom at least three shall be the whole-time members to be appointed by the central Government .

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Management of the Board

The primary objective of SEBI is to promote healthy and orderly growth -of the securities market and secure investor protection. The objectives of SEBI are as follows:

To protect the interest of investors, so that, there is a steady flow of savings into the capital market.

To regulate the securities market and ensure fair practices.

To promote efficient services by brokers, merchant bankers, and other intermediaries, so that, they become competitive and professional.

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The SEBI Act, 1992 has entrusted with two functions, they are Regulatory functions Developmental functions

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Regulation of stock exchange and self regulatory organizations.

Registration and regulation of stock brokers, sub-brokers, Registrars to all issues, merchant bankers, underwriters, portfolio managers etc.

Prohibition of fraudulent and unfair trade practices relating to securities market.

Prohibition of insider trading

Regulating substantial acquisition of shares and takeover of companies.

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Promoting investor’s education

Training of intermediaries

Conducting research and publishing information useful to all market participants.

Promotion of fair practices

Promotion of self regulatory organizations

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S. No. Name of Dept.1. MARKET INTERMEDIARIES REGULATION AND

SUPERVISION DEPARTMENT (MIRSD)

2. DERIVATIVES AND NEW PRODUCTS DEPARTMENT (DNPD)

3. INVESTMENT MANAGEMENT DEPARTMENT (IMD)

4. INVESTIGATIONS DEPARTMENT (IVD)

5. LEGAL AFFAIRS DEPARTMENT (LAD)

6. OFFICE OF INVESTOR ASSISTANCE & EDUCATION (OIAE)

7. DEPARTMENT OF ECONOMIC & POLICY ANALYSIS (DEPA)

8. INFORMATION TECHNOLOGY DEPARTMENT (ITD)9

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S. No. Name of Dept.9. MARKET REGULATION DEPARTMENT (MRD)

10. CORPORATION FINANCE DEPARTMENT (CFD)

11. INTEGRATED SURVEILLANCE DEPARTMENT (ISD)

12. ENFORCEMENT OF DEPARTMENT (EFD)

13. ENQUIRIES & ADJUDICATION DEPARTMENT (EAD)

14. GENERAL SERVICES DEPARTMENT (GSD)

15. OFFICE OF THE CHAIRMEN (OCH)

16. THE REGIONAL OFFICES (RO’s)

The Central Government has power to issue directions to SEBI Board, supersede the Board, if necessary and to call for returns and reports as and when necessary. The Central Government has also power to give any guideline or to make regulations and rules for SEBI and its operations.

The activities of SEBI are financed by grants from Central Government, in addition to fees, charges etc. collected by SEBI. The fund called SEBI General Fund is set up, to which, all fees, charges and grants are credited. This fund is used to meet the expenses of the Board and to pay salary of staff and members of the body.

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On the recommendation of the HILTON-YOUNG commission a bill to the effect in 1927 was introduced in the legislative assembly in 1927

The bill was passed & became the Reserve bank of India Act,1934

Originally a shareholder’s bank with a fully paid up capital of Rs. 5 crore

It’s major functions can be stated below Issuing currency notes i.e. to act as a

currency authorityBanker to the governmentActing as banker’s bank and supervisorMonetary regulation and managementExchange management and controlCollection of data and their publication

Miscellaneous activities Agricultural finance Industrial finance

QuantitativeBank rate-Open market operationCash reserve ratioStatutory liquidity ratioRepo and reverse repo rate

QualitativeSelective credit controlRationing of creditMoral persuasionDirect action

Policy Measure Repo rate reduced by 25 bps to 7.75 %▪ to provide an appropriate interest rate environment to support

growth as inflation risks moderate CRR reduced by 25 basis points from 4.25% to 4% ▪ to address systemic structural liquidity deficit - to increase credit

flow to productive sectors▪ release of Rs. 180 billion of primary liquidity

Policy Stance Support growth, contain inflation and anchor inflation

expectations and manage liquidity Guidance

Inflation likely to remain around current levels in 2013-14

Giving space, though limited, to address growth risks Guidance - conditioned by the evolving growth-inflation

dynamic and the management of risks from twin deficits

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Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutory body which regulates and develops the insurance industry in India. It was constituted by a Parliament of India act called Insurance Regulatory and Development Authority Act, 1999 [2] [3] and duly passed by the Government of India. [4]

The IRDA Act, 1999 was passed as per the major recommendation of the Malhotra Committee report (1994) which recommended establishment of an independent regulatory authority for insurance sector in India

IRDA is a ten member body consisting of:[6]

A Chairman,Five whole-time members andFour part-time members.

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

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 value of policy and other terms and conditions of contracts of insurance;

specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents

specifying the code of conduct for surveyors and loss assessors;

promoting efficiency in the conduct of insurance business;

promoting and regulating professional organizations connected with the insurance and re-insurance business;

levying fees and other charges for carrying out the purposes of this Act;

calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business

control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);

specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries

regulating investment of funds by insurance companies;

regulating maintenance of margin of solvency;

adjudication of disputes between insurers and intermediaries or insurance intermediaries;

supervising the functioning of the Tariff Advisory Committee;

specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organisations referred to in clause (2.6);

specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and

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