Controversies between SEBI & IRDA
Flow of the presentation:
* Reason of the dispute
* Role & concepts of
* Difference between Mutual funds & ULIP
* Complete story
* Effects of dispute
* news updates
Securities & Exchange Board of India
SEBI & Its Objectives:
* SEBI is the regulatory authority in India established under section 3 of SEBI act 1992. SEBI act 1992 provides for establishment of Securities & Exchange Board of India (SEBI) with statutory powers for a) protecting the interest of investors in securities.
b) promoting the development of securities market and,
c) regulating the securities market.
Why do we need a regulatory body for Investor protection in India? * India is an ` informationally ' weak market
* Boosting capital market demands restoring the confidence of lay investors who have been beaten down by repeated scams * Progressively softening interest rates and an underperforming economy have eroded investment options, and require enhanced investing skills. Functions of SEBI :
A) Review of the market operations, organizational structure and administrative control of the exchange
- All stock exchanges are required to be Body Corporates
- The exchange provides a fair, equitable and growing market to investors.
- The exchange’s organisation, systems and practices are in accordance with the Securities Contracts (Regulation) Act (SC(R) Act), 1956 B) Registration And Regulation Of Mutual Funds, Venture Capital Funds & Collective Investment Schemes * AMFI-Self Regulatory Organization-'promoting and protecting the interest of mutual funds and their unit-holders, increasing public awareness of mutual funds, and serving the investors' interest by defining and maintaining high ethical and professional standards in the mutual funds industry'. * Every mutual fund must be registered with SEBI and registration is granted only where SEBI is satisfied with the background of the fund. * SEBI has the authority to inspect the books of accounts, records and documents of a mutual fund, its trustees, AMC and custodian where it deems it necessary
C) Promoting & Regulating Self Regulatory Organizations
In order for the SRO to effectively execute its responsibilities, it would be required to be structured, organized, managed and controlled such that it retains its independence, while continuing to perform a genuine market development role D) Prohibiting Fraudulent and Unfair Trade Practices In The Securities Market * SEBI is vested with powers to take action against these practices relating to securities market manipulation and misleading statements to induce sale/purchase of securities.
E] Prohibition of Insider Trading
Stock Watch System, which has been put in place, surveillance over insider trading would be further strengthened.
F] Investor Education And The Training Of Intermediaries
SEBI distributed the booklet titled “A Quick Reference Guide for Investors” to the investors *
SEBI also issued a series of advertisement /public notices in national as well as regional newspapers to educate and caution the investors about the risks associated with the investments in collective investment schemes *
SEBI has also issued messages in the interest of investors on National Channel and Regional Stations on Doordarshan.
Insurance Regulatory and Development Authority (IRDA)
The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements....
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