Presented By : Atansha Chopra Ayush Bhushanwar Chhavi Lahoti Harsh Goyal Osheen Khandelwal Rachit Bhandari Shreshtha Dalmiya

The Securities and Exchange Board of India (frequently abbreviated SEBI) is the regulator for the securities market in India. It was established in the year 1988 and given statutory powers on 12 April 1992 through the SEBI Act, 1992

Functions and Responsibility

THE 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".

SEBI has to be responsive to the needs of three groups, which constitute the market:

the
the the

issuers of securities
investors market intermediaries.

SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and quasiexecutive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeal process to create accountability. There is a Securities Appellate Tribunal which is a three-member tribunal and is presently headed by a former Chief Justice of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court.

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 periodical returns from recognized stock exchanges. inspect the books of accounts of a financial intermediaries.

compel certain companies to list their shares in one or more stock exchanges.
registration brokers.

SEBI Committees

Technical Advisory Committee Committee for review of structure of market infrastructure institutions Members of the Advisory Committee for the SEBI Investor Protection and 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

INTRODUCTION
The IRDA (Insurance regulatory and development authority) is the national regulatory body for insurance industry both life and non life 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 and Development Authority (IRDA, which was constituted by an act 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)

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.

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 the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. 2. Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include: a. issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;

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 value of policy and other terms and conditions of contracts of insurance; c. specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;

d. specifying the code of conduct for surveyors and loss assessors;

e. promoting efficiency in the conduct of insurance business; f. 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; g. regulating investment of funds by insurance companies;

h. regulating maintenance of margin of solvency; i. adjudication of disputes between insurers and intermediaries or insurance 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 or insurance intermediaries; n. Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause o. Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; p. Exercising such other powers as may be prescribed

SUPPORTING ORGANISATIONS
1. Tariff Advisory Committee The main task of Tariff Advisory Committee is to regulate and control the rates, benefits, terms and conditions offered by life insurance companies in India. 2. Insurance Association of India All insurance companies in India are members of the Insurance Association of India. It has two councils under its patronage, mainly a. Life Insurance Council b. General Insurance Council 3. Ombudsmen Ombudsmen play important role in regulating and ensuring smooth functions of the insurance companies. They are appointed to address all complaints relating to settlements of claims. Anyone having a grievance against an insurance company can approach Ombudsmen for redressal.

NEW GUIDELINES AND EFFECTS

Lock in for Five Years and Premium Payment Term: Minimum lock-in period has been revised from the current 3 years to 5 years and barring single premium policies, the minimum payment term has also been raised to 5 pay. Increase in Minimum Sum Assured: The minimum sum assured multiple has been increased to 10 times for age at entry below 45 years and 7 times for age at entry above 45 years. At no time can the sum assured 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 new guideline stipulates the maximum net reduction in yield every year from 5th year. It is primarily an extension of the earlier stipulation of maximum net reduction in yield of 3% for policy term up to 10 years and 2.25% for policy term above 10 years.

Cap on Discontinuance Charge: IRDA has introduced a cap on surrender charge, now termed as policy discontinuance charge, basis the year of discontinuance and annual premium. This allows life insurers to charge only a small penalty on early surrender of policy. Modifications in Unit Linked Pension Products : Partial withdrawals in Unit Linked Pension products will not be allowed. On maturity, one third of the corpus could be taken as lump sum and rest must be used for buying annuities. This change will ensure a larger corpus is collected and used for retirement planning and not for other life stage needs.IRDA has also made it mandatory that all unit linked pension products must offer minimum guaranteed return which would be specified by IRDA from time to time.Even spread of charges during the lockin period. The new guidelines stipulate that the overall charges in ULIPs should be spread evenly over the lock-in period of 5 years.

IRDA IN NEWS
4 sept 2012 Insurance regulator IRDA recently slapped a penalty of Rs 49 lakh on Tata-AIG Life Insurance Company for violation of various regulatory norms. The Insurance Regulatory and Development Authority (IRDA) has found lapses in various rules, including non-adherence to norms of referrals and preparation of financial statements, by the life insurance company. "...I hereby direct the insurer (Tata-AIG Life Insurance Company) to remit the penalty of Rs 49 lakh debiting shareholder's account within 15 days," IRDA Chairman 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 the Insurance Act. The insurance company could not be contacted for comments. The regulator said Tata AIG Life has made certain payments to HSBC Bank and Citibank banks in violation of IRDA's guidelines on Group Insurance policies. The life insurer, IRDA said, was also been found violating the provisions of the norms while entering into referrals arrangement with non-banking entities and utilising unlicensed entities.

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