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Financial Regulators
Securities and Exchange Board of India (SEBI)
Reserve Bank of India
Ministry of Finance
IRDA
Objectives of SEBI:
The overall objectives of SEBI are to protect the
interest of investors and to promote the development
of stock exchange and to regulate the activities of
stock market. The objectives of SEBI are:
1. To regulate the activities of stock exchange.
2. To protect the rights of investors and ensuring
safety to their investment.
3. To prevent fraudulent and malpractices by having
balance between self regulation of business and its
statutory regulations.
4. To regulate and develop a code of conduct for
intermediaries such as brokers, underwriters, etc
Functions Of SEBI
Regulates Capital Market.
Checks Trading of securities.
Checks the malpractices in
securities market.
Functions Of SEBI
It enhances investor's knowledge on market
by providing education.
It regulates the stockbrokers and subbrokers.
To promote Research and Investigation
Con.
(iii)SEBI prohibits fraudulent and Unfair Trade Practices:
SEBI does not allow the companies to make misleading statements
which are likely to induce the sale or purchase of securities by any
other person.
(iv)SEBI undertakes steps to educate investors so that they are
able to evaluate the securities of various companies and select the
most profitable securities.
(v)SEBI promotes fair practices and code of conduct in security
market by taking following steps:
(a) SEBI has issued guidelines to protect the interest of debentureholders wherein companies cannot change terms in midterm.
(b) SEBI is empowered to investigate cases of insider trading and
has provisions for stiff fine and imprisonment.
(c) SEBI has stopped the practice of making preferential allotment
of shares unrelated to market prices
2. Developmental Functions:
These functions are performed by the SEBI to promote and
develop activities in stock exchange and increase the business
in stock exchange. Under developmental categories following
functions are performed by SEBI:
(i) SEBI promotes training of intermediaries of the securities
market.
(ii) SEBI tries to promote activities of stock exchange by
adopting flexible and adoptable approach in following way:
(a) SEBI has permitted internet trading through registered
stock brokers.
(b) SEBI has made underwriting optional to reduce the cost of
issue.
(c) Even initial public offer of primary market is permitted
through stock exchange
3. Regulatory Functions:
These functions are performed by SEBI to regulate the business in
stock exchange. To regulate the activities of stock exchange
following functions are performed:
(i) SEBI has framed rules and regulations and a code of conduct to
regulate the intermediaries such as merchant bankers, brokers,
underwriters, etc.
(ii) These intermediaries have been brought under the regulatory
purview and private placement has been made more restrictive.
(iii) SEBI registers and regulates the working of stock brokers, subbrokers, share transfer agents, trustees, merchant bankers and all
those who are associated with stock exchange in any manner.
(iv) SEBI registers and regulates the working of mutual funds etc.
(v) SEBI regulates takeover of the companies.
(vi) SEBI conducts inquiries and audit of stock exchanges
Functions Of RBI
Monetary Authority:
Formulation and Implementation of monetary
policies.
Maintaining price stability and ensuring
adequate flow of credit to the Productive
sectors.
Issuer of currency:
Issues and exchanges or destroys currency
and coins.
Provide the public adequate quantity of
supplies of currency notes and coins.
Functions Of RBI
Regulator and supervisor of the financial
system:
Prescribes broad parameters of banking
operations
Maintain public confidence, protect depositors'
interest and provide cost-effective banking
services.
Authority On Foreign Exchange:
Manages the Foreign Exchange Management Act,
1999.
Facilitate external trade, payment, promote
orderly development and maintenance of foreign
exchange market.
Functions Of RBI
Developmental role:
Performs a wide range of promotional functions to
support national objectives.
Related Functions:
Banker to the Government: performs merchant
banking function for the central and the state
governments.
Maintains banking accounts of all scheduled
banks.
Monetary Measures
(a) Bank Rate:
The Bank Rate was kept unchanged at 6.0 per
cent.
(b) Reverse Repo Rate:
The Repo rate is around 7 per cent and Reverse
repo rate is around 6.10 per cent.
(c) Cash Reserve Ratio:
The cash reserve ratio (CRR) of scheduled banks is
currently at 5.0 per cent.
IRDA
IRDA
Agent Training
Institute
Ins. Co.
(Development
Officer)
III
EXAM
Service Provider
----------------------1.Care-Site
2.Tech Support
Designated
Person
(Ins. Co.)
Agent Registration
Agents
Portal
IRDA Function.
Due diligence
Due diligence is the process of systematically
researching and verifying the accuracy of a statement.
The term originated in the business world, where due
diligence is required to validate financial statements.
The goal of the process is to ensure that all
stakeholders associated with a financial endeavor have
the information they need to assess risk accurately.
In real estate, due diligence is the time period between
the acceptance of an offer and the close of issue.
In civil law, due diligence is synonymous with
"reasonable care."
When apatentis issued, due diligence is the
requirement that the patent holder should develop a
product around the patent, and not just prevent others
from doing so.