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501 | A uniform legal process for the financial sector regulators emphasising rule of law.A well-articulated principles-based approach to primary legislation emphasising a sound body of subordinate legislation based on these laws.Statutorily empowered, independent regulators with clear goals, powers and accountability.Removing twilight zones in the financial sector: every entity operating in the financial space needs to be on the radar of a financial regulator.Focusing on consumer protection - This is the ultimate objective of financial sector regulation as regulation per se is not an objective. Consumer protection has two components; prevention and cure. While financial regulators will address the former, the proposed financial redressal agency (FRA) spanning across the financial sector will deal with the latter addressing financial consumer grievances. A feed-back loop from the FRA to the regulators will help the latter in systemically addressing consumer grievances by appropriate regulations. |
502 | A well-articulated principles-based approach to primary legislation emphasising a sound body of subordinate legislation based on these laws.Statutorily empowered, independent regulators with clear goals, powers and accountability.Removing twilight zones in the financial sector: every entity operating in the financial space needs to be on the radar of a financial regulator.Focusing on consumer protection - This is the ultimate objective of financial sector regulation as regulation per se is not an objective. Consumer protection has two components; prevention and cure. While financial regulators will address the former, the proposed financial redressal agency (FRA) spanning across the financial sector will deal with the latter addressing financial consumer grievances. A feed-back loop from the FRA to the regulators will help the latter in systemically addressing consumer grievances by appropriate regulations.A resolution mechanism to address failure of financial firms and |
503 | Removing twilight zones in the financial sector: every entity operating in the financial space needs to be on the radar of a financial regulator.Focusing on consumer protection - This is the ultimate objective of financial sector regulation as regulation per se is not an objective. Consumer protection has two components; prevention and cure. While financial regulators will address the former, the proposed financial redressal agency (FRA) spanning across the financial sector will deal with the latter addressing financial consumer grievances. A feed-back loop from the FRA to the regulators will help the latter in systemically addressing consumer grievances by appropriate regulations.A resolution mechanism to address failure of financial firms andto protect consumers, including management of the deposit insurance scheme.Ownership neutrality and competition.Moving away from the sectoral approach to regulation. |
504 | to protect consumers, including management of the deposit insurance scheme.Ownership neutrality and competition.Moving away from the sectoral approach to regulation.A framework for addressing systemic risk, financial sector development, coordination etc.FSLRC Report – Volume I & IISubsequent to the approach paper, the Financial Sector Legislative Reforms Commission headed by Chairman Justice B.N.Srikrishna submitted a two volume report to the Ministry of Finance in March 2013, with its recommendations on the legal and institutional framework for the future of India’s financial system.The main outcome of the Commission’s work is a draft ‘Indian Financial Code’ which is non-sectoral in nature, which is in Volume II of the report and replaces the bulk of the existing financial law. Volume 1 expresses the arguments that led up to the key decisions embedded in the draft Code.The Commission identified nine components of focus for financial law:consumer protection,micro-prudential regulation, |
505 | The Commission identified nine components of focus for financial law:consumer protection,micro-prudential regulation,resolution,capital controls,systemic risk,development and redistribution,monetary policy,public debt management andcontracts trading & market abuse.Under the proposed regulatory architecture, Securities and Exchange Board of India (SEBI), Forward Markets Commission (FMC), Insurance Regulatory and Development Authority (IRDA) and Pension Fund Regulatory and Development Authority (PFRDA) would be merged into a new unified agency.The Reserve Bank, however, will continue to exist with modified functions, said the two-volume report of the Commission.It said the existing Securities Appellate Tribunal be subsumed into Financial Sector Appellate Tribunal (FSAT).It also suggested that Financial Sector Development Council (FSDC) be given statutory framework. |
506 | It said the existing Securities Appellate Tribunal be subsumed into Financial Sector Appellate Tribunal (FSAT).It also suggested that Financial Sector Development Council (FSDC) be given statutory framework.The panel also suggested setting up of a new Debt Management Office (DMO) and also subsuming the existing Deposit Insurance and Credit Guarantee Corporation of India (DICGC) into the Resolution Corporation.“The Commission believes that this proposed financial regulatory architecture is a modest step away from present practice, embeds important improvements, and will serve India well in coming years,” the Commission said.According to the Commission, the actual functioning of the regulator lies in three areas -- regulation-making, executive functions and administrative law functions.With regard to capital control, the report said the Finance Ministry should make rules for inbound capital flows, while the onus of making rules for outbound capital flows should rest with the RBI. |
507 | According to the Commission, the actual functioning of the regulator lies in three areas -- regulation-making, executive functions and administrative law functions.With regard to capital control, the report said the Finance Ministry should make rules for inbound capital flows, while the onus of making rules for outbound capital flows should rest with the RBI.“At present, in India, there is a confusing situation with regulators utilising many instruments such as regulations, guidelines, circulars, letters, notices and press releases. The draft Code requires all regulators to operate through a small number of well defined instruments only,” it said. It said, in an emergency the regulator can issue regulations. However, these regulations would lapse within six months.The Commission has proposed a financial regulatory architecture featuring seven agencies –The existing RBI will continue to exist, though with modifiedfunctions. |
508 | The Commission has proposed a financial regulatory architecture featuring seven agencies –The existing RBI will continue to exist, though with modifiedfunctions.The existing SEBI, FMC, IRDA and PFRDA will be merged into a new unified agency.The existing Securities Appellate Tribunal (SAT) will be subsumedinto the FSAT.The existing Deposit Insurance and Credit Guarantee Corporation of India (DICGC) will be subsumed into the Resolution Corporation.A new Financial Redressal Agency (FRA) will be created.A new Debt Management Office will be created.The existing FSDC will continue to exist, though with modified functions and a statutory framework. |
509 | The existing Deposit Insurance and Credit Guarantee Corporation of India (DICGC) will be subsumed into the Resolution Corporation.A new Financial Redressal Agency (FRA) will be created.A new Debt Management Office will be created.The existing FSDC will continue to exist, though with modified functions and a statutory framework.The Commission has recommended the repeal or large scale amendment of all special legislations that (a) establish statutory financial institutions; or (b) lay down specific provisions to govern any aspect of the operation or functioning of public sector financial institutions. The undertakings of all statutory institutions should be transferred to ordinary companies incorporated under the Companies Act, 1956 and their regulatory treatment should be identical as that applicable to all other financial companies.Draft Indian Financial Code, 2013 |
510 | The Commission has recommended the repeal or large scale amendment of all special legislations that (a) establish statutory financial institutions; or (b) lay down specific provisions to govern any aspect of the operation or functioning of public sector financial institutions. The undertakings of all statutory institutions should be transferred to ordinary companies incorporated under the Companies Act, 1956 and their regulatory treatment should be identical as that applicable to all other financial companies.Draft Indian Financial Code, 2013The draft Indian Financial Code submitted by the FSLRC contains 450 clauses under 15 Parts and 87 chapters with 6 schedules. It is a single unified and internally consistent draft law that replaces a large part of the existing Indian legal framework governing finance.The draft Code does not differentiate between different sectors in the financial system, the draft Code establishes a single framework for regulatory governance across all agencies. |
511 | The draft Indian Financial Code submitted by the FSLRC contains 450 clauses under 15 Parts and 87 chapters with 6 schedules. It is a single unified and internally consistent draft law that replaces a large part of the existing Indian legal framework governing finance.The draft Code does not differentiate between different sectors in the financial system, the draft Code establishes a single framework for regulatory governance across all agencies.It creates a series of obligations for the Government and for regulators.The draft Code covers all functions of regulators, and defines the behaviour that is required from the regulator.It establishes certain elements of the functioning of board meetings, so as to ensure adequate oversight of the board over the organisation, and an emphasis on transparency. |
512 | The draft Code does not differentiate between different sectors in the financial system, the draft Code establishes a single framework for regulatory governance across all agencies.It creates a series of obligations for the Government and for regulators.The draft Code covers all functions of regulators, and defines the behaviour that is required from the regulator.It establishes certain elements of the functioning of board meetings, so as to ensure adequate oversight of the board over the organisation, and an emphasis on transparency.At present, in India, there is a confusing situation with regulators utilising many instruments such as regulations, guidelines, circulars, letters, notices and press releases. The draft Code requires all regulators to operate through a small number of well defined instruments only. |
513 | The draft Code covers all functions of regulators, and defines the behaviour that is required from the regulator.It establishes certain elements of the functioning of board meetings, so as to ensure adequate oversight of the board over the organisation, and an emphasis on transparency.At present, in India, there is a confusing situation with regulators utilising many instruments such as regulations, guidelines, circulars, letters, notices and press releases. The draft Code requires all regulators to operate through a small number of well defined instruments only.The draft Code has specifics about each element of the executive powers. The first stage is the processing of permissions. A systematic process has been laid down through which permissions would be given.The draft Code has a systematic approach where certain standard categories are defined, and principles guide the application of penalties. This would help induce greater consistency, and help produce greater deterrence. |
514 | At present, in India, there is a confusing situation with regulators utilising many instruments such as regulations, guidelines, circulars, letters, notices and press releases. The draft Code requires all regulators to operate through a small number of well defined instruments only.The draft Code has specifics about each element of the executive powers. The first stage is the processing of permissions. A systematic process has been laid down through which permissions would be given.The draft Code has a systematic approach where certain standard categories are defined, and principles guide the application of penalties. This would help induce greater consistency, and help produce greater deterrence.A critical component of the framework for penalties is the mechanisms for compounding, which are laid on a sound foundation, and consistently applied across the entire financial system.It establishes certain basic rights for all financial consumers. |
515 | The draft Code has specifics about each element of the executive powers. The first stage is the processing of permissions. A systematic process has been laid down through which permissions would be given.The draft Code has a systematic approach where certain standard categories are defined, and principles guide the application of penalties. This would help induce greater consistency, and help produce greater deterrence.A critical component of the framework for penalties is the mechanisms for compounding, which are laid on a sound foundation, and consistently applied across the entire financial system.It establishes certain basic rights for all financial consumers.The Commission envisages a unified Financial Sector Appellate Tribunal (FSAT) that would hear all appeals in finance. A considerable focus has been placed, in the draft Code, on the functioning of the registry of FSAT, so as to achieve high efficiency. |
516 | The draft Code has a systematic approach where certain standard categories are defined, and principles guide the application of penalties. This would help induce greater consistency, and help produce greater deterrence.A critical component of the framework for penalties is the mechanisms for compounding, which are laid on a sound foundation, and consistently applied across the entire financial system.It establishes certain basic rights for all financial consumers.The Commission envisages a unified Financial Sector Appellate Tribunal (FSAT) that would hear all appeals in finance. A considerable focus has been placed, in the draft Code, on the functioning of the registry of FSAT, so as to achieve high efficiency.The part on establishment of financial regulatory agencies provides for the creation of five new statutory bodies - UFA, Resolution Corporation, FRA, PDMA and FSAT. This part also provides for the allocation of regulatory responsibilities between the two financial sector regulators - UFA and RBI. |
517 | A critical component of the framework for penalties is the mechanisms for compounding, which are laid on a sound foundation, and consistently applied across the entire financial system.It establishes certain basic rights for all financial consumers.The Commission envisages a unified Financial Sector Appellate Tribunal (FSAT) that would hear all appeals in finance. A considerable focus has been placed, in the draft Code, on the functioning of the registry of FSAT, so as to achieve high efficiency.The part on establishment of financial regulatory agencies provides for the creation of five new statutory bodies - UFA, Resolution Corporation, FRA, PDMA and FSAT. This part also provides for the allocation of regulatory responsibilities between the two financial sector regulators - UFA and RBI.The draft Code however revisits the functions and powers of RBI, and sets out the manner in which it must be operated and governed. Similarly, in case of FSDC, the existing FSDC is to be recast as a statutory body. |
518 | It establishes certain basic rights for all financial consumers.The Commission envisages a unified Financial Sector Appellate Tribunal (FSAT) that would hear all appeals in finance. A considerable focus has been placed, in the draft Code, on the functioning of the registry of FSAT, so as to achieve high efficiency.The part on establishment of financial regulatory agencies provides for the creation of five new statutory bodies - UFA, Resolution Corporation, FRA, PDMA and FSAT. This part also provides for the allocation of regulatory responsibilities between the two financial sector regulators - UFA and RBI.The draft Code however revisits the functions and powers of RBI, and sets out the manner in which it must be operated and governed. Similarly, in case of FSDC, the existing FSDC is to be recast as a statutory body.The remaining provisions of the draft Code lay down the powers and functions of these statutory bodies and the principles and processes to govern the exercise of their powers. |
519 | The Commission envisages a unified Financial Sector Appellate Tribunal (FSAT) that would hear all appeals in finance. A considerable focus has been placed, in the draft Code, on the functioning of the registry of FSAT, so as to achieve high efficiency.The part on establishment of financial regulatory agencies provides for the creation of five new statutory bodies - UFA, Resolution Corporation, FRA, PDMA and FSAT. This part also provides for the allocation of regulatory responsibilities between the two financial sector regulators - UFA and RBI.The draft Code however revisits the functions and powers of RBI, and sets out the manner in which it must be operated and governed. Similarly, in case of FSDC, the existing FSDC is to be recast as a statutory body.The remaining provisions of the draft Code lay down the powers and functions of these statutory bodies and the principles and processes to govern the exercise of their powers.The Code envisages the establishment of the following agencies |
520 | The part on establishment of financial regulatory agencies provides for the creation of five new statutory bodies - UFA, Resolution Corporation, FRA, PDMA and FSAT. This part also provides for the allocation of regulatory responsibilities between the two financial sector regulators - UFA and RBI.The draft Code however revisits the functions and powers of RBI, and sets out the manner in which it must be operated and governed. Similarly, in case of FSDC, the existing FSDC is to be recast as a statutory body.The remaining provisions of the draft Code lay down the powers and functions of these statutory bodies and the principles and processes to govern the exercise of their powers.The Code envisages the establishment of the following agenciesUnified Financial Authority (UFA)Reserve Bank of India (RBI)Financial Redress Agency (FRA)Resolution CorporationFinancial Stability & Development Council (FSDC)Public Debt Management Agency (PDMA)Financial Sector Appellate Tribunal (FSAT) |
521 | Financial Stability & Development Council (FSDC)Public Debt Management Agency (PDMA)Financial Sector Appellate Tribunal (FSAT)The Code covers all functions of the regulator and lays down the principles and standards of behaviour expected from the regulator. It also provides for a system of monitoring the functions of the regulator with a process to ensure that the regulator is fully transparent and they act in compliance with the best practices of public administration. The Commission felt that the structure of the regulator should be standardised for all financial regulators except for certain exemptions where the general regulatory processes may not apply. These exceptions to the general process law should be kept to the minimum and generally avoided. |
522 | Financial Sector Appellate Tribunal (FSAT)The Code covers all functions of the regulator and lays down the principles and standards of behaviour expected from the regulator. It also provides for a system of monitoring the functions of the regulator with a process to ensure that the regulator is fully transparent and they act in compliance with the best practices of public administration. The Commission felt that the structure of the regulator should be standardised for all financial regulators except for certain exemptions where the general regulatory processes may not apply. These exceptions to the general process law should be kept to the minimum and generally avoided.The consumer protection part of the Code has three components: an enumerated set of rights and protections for consumers, an enumerated set of powers in the hands of the regulator, and principles that guide what power should be used under what circumstances. The details of consumer protection would, of course, lie in the subordinated legislation to be drafted by financial regulators. The Commission felt that an overarching principle based body of law would allow regulatory flexibility, consistent treatment of consumers across all aspects of their engagement with the financial system, fairness and ultimately a more stable financial system. The basic objective of consumer protection is to guard consumer interests and to promote public awareness. While pursuing these objectives, the regulator will be empowered to make regulations to determine the manner and extent to which the protections under the law will apply to the users of different financial products and services. |
523 | Financial Sector Appellate Tribunal (FSAT)The Code covers all functions of the regulator and lays down the principles and standards of behaviour expected from the regulator. It also provides for a system of monitoring the functions of the regulator with a process to ensure that the regulator is fully transparent and they act in compliance with the best practices of public administration. The Commission felt that the structure of the regulator should be standardised for all financial regulators except for certain exemptions where the general regulatory processes may not apply. These exceptions to the general process law should be kept to the minimum and generally avoided.The consumer protection part of the Code has three components: an enumerated set of rights and protections for consumers, an enumerated set of powers in the hands of the regulator, and principles that guide what power should be used under what circumstances. The details of consumer protection would, of course, lie in the subordinated legislation to be drafted by financial regulators. The Commission felt that an overarching principle based body of law would allow regulatory flexibility, consistent treatment of consumers across all aspects of their engagement with the financial system, fairness and ultimately a more stable financial system. The basic objective of consumer protection is to guard consumer interests and to promote public awareness. While pursuing these objectives, the regulator will be empowered to make regulations to determine the manner and extent to which the protections under the law will apply to the users of different financial products and services. |
524 | The Code covers all functions of the regulator and lays down the principles and standards of behaviour expected from the regulator. It also provides for a system of monitoring the functions of the regulator with a process to ensure that the regulator is fully transparent and they act in compliance with the best practices of public administration. The Commission felt that the structure of the regulator should be standardised for all financial regulators except for certain exemptions where the general regulatory processes may not apply. These exceptions to the general process law should be kept to the minimum and generally avoided.The consumer protection part of the Code has three components: an enumerated set of rights and protections for consumers, an enumerated set of powers in the hands of the regulator, and principles that guide what power should be used under what circumstances. The details of consumer protection would, of course, lie in the subordinated legislation to be drafted by financial regulators. The Commission felt that an overarching principle based body of law would allow regulatory flexibility, consistent treatment of consumers across all aspects of their engagement with the financial system, fairness and ultimately a more stable financial system. The basic objective of consumer protection is to guard consumer interests and to promote public awareness. While pursuing these objectives, the regulator will be empowered to make regulations to determine the manner and extent to which the protections under the law will apply to the users of different financial products and services.The draft Code addresses fundamental concerns in the framework of capital controls, and provides for the following: |
525 | The consumer protection part of the Code has three components: an enumerated set of rights and protections for consumers, an enumerated set of powers in the hands of the regulator, and principles that guide what power should be used under what circumstances. The details of consumer protection would, of course, lie in the subordinated legislation to be drafted by financial regulators. The Commission felt that an overarching principle based body of law would allow regulatory flexibility, consistent treatment of consumers across all aspects of their engagement with the financial system, fairness and ultimately a more stable financial system. The basic objective of consumer protection is to guard consumer interests and to promote public awareness. While pursuing these objectives, the regulator will be empowered to make regulations to determine the manner and extent to which the protections under the law will apply to the users of different financial products and services.The draft Code addresses fundamental concerns in the framework of capital controls, and provides for the following:The rules on capital account transactions for all inbound flows including outflows that arise as a consequence of these inflows, will be made by the Central Government in consultation with the RBI. The regulations on capital account transactions for all outbound flows will be made by the RBI in consultation with the Central Government. |
526 | The consumer protection part of the Code has three components: an enumerated set of rights and protections for consumers, an enumerated set of powers in the hands of the regulator, and principles that guide what power should be used under what circumstances. The details of consumer protection would, of course, lie in the subordinated legislation to be drafted by financial regulators. The Commission felt that an overarching principle based body of law would allow regulatory flexibility, consistent treatment of consumers across all aspects of their engagement with the financial system, fairness and ultimately a more stable financial system. The basic objective of consumer protection is to guard consumer interests and to promote public awareness. While pursuing these objectives, the regulator will be empowered to make regulations to determine the manner and extent to which the protections under the law will apply to the users of different financial products and services.The draft Code addresses fundamental concerns in the framework of capital controls, and provides for the following:The rules on capital account transactions for all inbound flows including outflows that arise as a consequence of these inflows, will be made by the Central Government in consultation with the RBI. The regulations on capital account transactions for all outbound flows will be made by the RBI in consultation with the Central Government.A single investment vehicle for investment in India i.e., qualified foreign investors (those foreign investors who meet the customer due diligence criteria prescribed by the Central Government); |
527 | The draft Code addresses fundamental concerns in the framework of capital controls, and provides for the following:The rules on capital account transactions for all inbound flows including outflows that arise as a consequence of these inflows, will be made by the Central Government in consultation with the RBI. The regulations on capital account transactions for all outbound flows will be made by the RBI in consultation with the Central Government.A single investment vehicle for investment in India i.e., qualified foreign investors (those foreign investors who meet the customer due diligence criteria prescribed by the Central Government);A sound legal process while making rules for capital account transactions and while granting approvals;A framework for imposition of controls in emergency situations (such as war, natural calamity and balance of payment crises); |
528 | A single investment vehicle for investment in India i.e., qualified foreign investors (those foreign investors who meet the customer due diligence criteria prescribed by the Central Government);A sound legal process while making rules for capital account transactions and while granting approvals;A framework for imposition of controls in emergency situations (such as war, natural calamity and balance of payment crises);Review or restrictions on capital account transactions on national security considerations, by the Central Government or the RBI for inbound and outbound flows, respectively;Review of decisions of the Central Government and the RBI;andThe principle that once controls are imposed at the entry level there must be equal treatment for Indian investors and foreign investors. |
529 | Review or restrictions on capital account transactions on national security considerations, by the Central Government or the RBI for inbound and outbound flows, respectively;Review of decisions of the Central Government and the RBI;andThe principle that once controls are imposed at the entry level there must be equal treatment for Indian investors and foreign investors.Ensuring compliance of provisions on capital controls in the draft Code, rules and regulations in relation to the capital controls is placed with the RBI in the draft Code. This would include oversight of reporting of foreign exchange transactions with the FDMC and ensuring compliance of the law, rules and regulations. Under conditions of full capital account convertibility, these functions will be placed with the Central Government. |
530 | andThe principle that once controls are imposed at the entry level there must be equal treatment for Indian investors and foreign investors.Ensuring compliance of provisions on capital controls in the draft Code, rules and regulations in relation to the capital controls is placed with the RBI in the draft Code. This would include oversight of reporting of foreign exchange transactions with the FDMC and ensuring compliance of the law, rules and regulations. Under conditions of full capital account convertibility, these functions will be placed with the Central Government.The governance and operations of the public debt management agency would be handled through a two-tiered arrangement. At the top, there would be an advisory council, comprising of experts in finance, law, and public debt management. The advisory council must advise and issue opinions on any matter related to the objectives and functions of the public debt management agency that is referred to it by the agency or the Central Government. It must also advise and provide its opinion on the financing plans submitted by the public debt management agency to the Central Government, as well as the agency’s annual report, whenever such opinion is sought. The council must meet periodically to review and ratify the borrowing programme for the upcoming months. The main benefit of an independent public debt management agency will come through the integration of public debt management functions and various databases and information, which are currently dispersed. By unifying the public debt management function, and efficiently linking it with the cash and the investment management functions, there will be improved information, analysis and thus decision making. With specialised human resources at its disposal, the public debt management agency can contribute to a more effective interface with the market resulting in Cost-efficient management of Government borrowings. A specialised, unified and independent agency will have significant comparative advantage over the existing structure of a fractured and uncoordinated Government borrowing programme spread across various agencies. |
531 | The principle that once controls are imposed at the entry level there must be equal treatment for Indian investors and foreign investors.Ensuring compliance of provisions on capital controls in the draft Code, rules and regulations in relation to the capital controls is placed with the RBI in the draft Code. This would include oversight of reporting of foreign exchange transactions with the FDMC and ensuring compliance of the law, rules and regulations. Under conditions of full capital account convertibility, these functions will be placed with the Central Government.The governance and operations of the public debt management agency would be handled through a two-tiered arrangement. At the top, there would be an advisory council, comprising of experts in finance, law, and public debt management. The advisory council must advise and issue opinions on any matter related to the objectives and functions of the public debt management agency that is referred to it by the agency or the Central Government. It must also advise and provide its opinion on the financing plans submitted by the public debt management agency to the Central Government, as well as the agency’s annual report, whenever such opinion is sought. The council must meet periodically to review and ratify the borrowing programme for the upcoming months. The main benefit of an independent public debt management agency will come through the integration of public debt management functions and various databases and information, which are currently dispersed. By unifying the public debt management function, and efficiently linking it with the cash and the investment management functions, there will be improved information, analysis and thus decision making. With specialised human resources at its disposal, the public debt management agency can contribute to a more effective interface with the market resulting in Cost-efficient management of Government borrowings. A specialised, unified and independent agency will have significant comparative advantage over the existing structure of a fractured and uncoordinated Government borrowing programme spread across various agencies. |
532 | Ensuring compliance of provisions on capital controls in the draft Code, rules and regulations in relation to the capital controls is placed with the RBI in the draft Code. This would include oversight of reporting of foreign exchange transactions with the FDMC and ensuring compliance of the law, rules and regulations. Under conditions of full capital account convertibility, these functions will be placed with the Central Government.The governance and operations of the public debt management agency would be handled through a two-tiered arrangement. At the top, there would be an advisory council, comprising of experts in finance, law, and public debt management. The advisory council must advise and issue opinions on any matter related to the objectives and functions of the public debt management agency that is referred to it by the agency or the Central Government. It must also advise and provide its opinion on the financing plans submitted by the public debt management agency to the Central Government, as well as the agency’s annual report, whenever such opinion is sought. The council must meet periodically to review and ratify the borrowing programme for the upcoming months. The main benefit of an independent public debt management agency will come through the integration of public debt management functions and various databases and information, which are currently dispersed. By unifying the public debt management function, and efficiently linking it with the cash and the investment management functions, there will be improved information, analysis and thus decision making. With specialised human resources at its disposal, the public debt management agency can contribute to a more effective interface with the market resulting in Cost-efficient management of Government borrowings. A specialised, unified and independent agency will have significant comparative advantage over the existing structure of a fractured and uncoordinated Government borrowing programme spread across various agencies.Following is a list of legislations to be repealed: |
533 | The governance and operations of the public debt management agency would be handled through a two-tiered arrangement. At the top, there would be an advisory council, comprising of experts in finance, law, and public debt management. The advisory council must advise and issue opinions on any matter related to the objectives and functions of the public debt management agency that is referred to it by the agency or the Central Government. It must also advise and provide its opinion on the financing plans submitted by the public debt management agency to the Central Government, as well as the agency’s annual report, whenever such opinion is sought. The council must meet periodically to review and ratify the borrowing programme for the upcoming months. The main benefit of an independent public debt management agency will come through the integration of public debt management functions and various databases and information, which are currently dispersed. By unifying the public debt management function, and efficiently linking it with the cash and the investment management functions, there will be improved information, analysis and thus decision making. With specialised human resources at its disposal, the public debt management agency can contribute to a more effective interface with the market resulting in Cost-efficient management of Government borrowings. A specialised, unified and independent agency will have significant comparative advantage over the existing structure of a fractured and uncoordinated Government borrowing programme spread across various agencies.Following is a list of legislations to be repealed:The Securities Contracts (Regulation) Act, 1956 |
534 | The governance and operations of the public debt management agency would be handled through a two-tiered arrangement. At the top, there would be an advisory council, comprising of experts in finance, law, and public debt management. The advisory council must advise and issue opinions on any matter related to the objectives and functions of the public debt management agency that is referred to it by the agency or the Central Government. It must also advise and provide its opinion on the financing plans submitted by the public debt management agency to the Central Government, as well as the agency’s annual report, whenever such opinion is sought. The council must meet periodically to review and ratify the borrowing programme for the upcoming months. The main benefit of an independent public debt management agency will come through the integration of public debt management functions and various databases and information, which are currently dispersed. By unifying the public debt management function, and efficiently linking it with the cash and the investment management functions, there will be improved information, analysis and thus decision making. With specialised human resources at its disposal, the public debt management agency can contribute to a more effective interface with the market resulting in Cost-efficient management of Government borrowings. A specialised, unified and independent agency will have significant comparative advantage over the existing structure of a fractured and uncoordinated Government borrowing programme spread across various agencies.Following is a list of legislations to be repealed:The Securities Contracts (Regulation) Act, 1956The Securities and Exchange Board of India Act, 1992 |
535 | Following is a list of legislations to be repealed:The Securities Contracts (Regulation) Act, 1956The Securities and Exchange Board of India Act, 1992The Depositories Act, 1996The Public Debt Act, 1944The Government Securities Act, 2006The Reserve Bank of India Act, 1934The Insurance Act, 1938The Banking Regulation Act, 1949The Forward Contracts (Regulation) Act, 1952TheBankingCompanies(AcquisitionandTransferof Undertakings) Act, 1970The Deposit Insurance and Credit Guarantee Corporation Act,1961The Foreign Exchange Management Act, 1999The Insurance Regulatory and Development Authority Act, 1999The Payment and Settlement Systems Act, 2007The Acts establishing bodies corporate involved in the financial sector (e.g. TheState Bank of India Act, 1955 and The Life Insurance Corporation Act, 1956)Adoption of governance enhancing and non-legislative elements of the draft Indian Financial Code |
536 | State Bank of India Act, 1955 and The Life Insurance Corporation Act, 1956)Adoption of governance enhancing and non-legislative elements of the draft Indian Financial CodeThe Report of the Financial Sector Legislative Reforms Commission, which was submitted to the Central Government in March 2013 has recommended transformation of the legal foundations for Indian finance, through the enactment of the IFC. The IFC, establishes sound public administration and rule of law, and focuses financial agencies towards addressing market failures in the financial sector.In its Eighth Meeting, the Financial Stability and Development Council (FSDC) decided, inter alia that, “all the financial sector regulators (including FMC) will finalise an action plan for implementation of all the FSLRC principles relating to regulatory governance, transparency andimproved operational efficiency that do not require legislative action.” |
537 | In its Eighth Meeting, the Financial Stability and Development Council (FSDC) decided, inter alia that, “all the financial sector regulators (including FMC) will finalise an action plan for implementation of all the FSLRC principles relating to regulatory governance, transparency andimproved operational efficiency that do not require legislative action.”The FSDC accordingly approved twelve steps (and one item on the early implementation of these steps) that each regulator will take for the implementation of the recommendations of the Report of the Financial Sector Legislative Reforms Commission, that would enhance governance, and not require legislative action at present. This is given in the ‘Handbook on adoption of governance enhancing and non- legislative elements of the draft Indian Financial Code’.Consumer Protection |
538 | The FSDC accordingly approved twelve steps (and one item on the early implementation of these steps) that each regulator will take for the implementation of the recommendations of the Report of the Financial Sector Legislative Reforms Commission, that would enhance governance, and not require legislative action at present. This is given in the ‘Handbook on adoption of governance enhancing and non- legislative elements of the draft Indian Financial Code’.Consumer ProtectionThe vulnerability of consumers reflects a major gap in Indian financial regulation. The Financial Sector Legislative Reforms Commission (FSLRC) has recommended the adoption of a consolidated consumer protection framework for the entire financial system that will empower and require regulators to pursue consumer protection for the financial activities under their jurisdiction. It has recommended legislative action on two fronts: prevention and cure. |
539 | The FSDC accordingly approved twelve steps (and one item on the early implementation of these steps) that each regulator will take for the implementation of the recommendations of the Report of the Financial Sector Legislative Reforms Commission, that would enhance governance, and not require legislative action at present. This is given in the ‘Handbook on adoption of governance enhancing and non- legislative elements of the draft Indian Financial Code’.Consumer ProtectionThe vulnerability of consumers reflects a major gap in Indian financial regulation. The Financial Sector Legislative Reforms Commission (FSLRC) has recommended the adoption of a consolidated consumer protection framework for the entire financial system that will empower and require regulators to pursue consumer protection for the financial activities under their jurisdiction. It has recommended legislative action on two fronts: prevention and cure.Prevention requires regulation-making and enforcement across the entire financial system from the viewpoint of consumer interests. For example, regulation may prohibit use of certain unfair terms of contract, which unreasonably favor the financial service provider at the expense of consumers. |
540 | Consumer ProtectionThe vulnerability of consumers reflects a major gap in Indian financial regulation. The Financial Sector Legislative Reforms Commission (FSLRC) has recommended the adoption of a consolidated consumer protection framework for the entire financial system that will empower and require regulators to pursue consumer protection for the financial activities under their jurisdiction. It has recommended legislative action on two fronts: prevention and cure.Prevention requires regulation-making and enforcement across the entire financial system from the viewpoint of consumer interests. For example, regulation may prohibit use of certain unfair terms of contract, which unreasonably favor the financial service provider at the expense of consumers.Cure requires providing consumers access to effective grievance redress mechanisms. The Report of the Financial Sector Legislative Reforms Commission, has recommended a two-tiered system of grievance redress. First, there should be mandated grievance redress mechanism within each financial service provider. Second, it has recommended an Ombudsman- like mechanism to redress consumer grievances. |
541 | Consumer ProtectionThe vulnerability of consumers reflects a major gap in Indian financial regulation. The Financial Sector Legislative Reforms Commission (FSLRC) has recommended the adoption of a consolidated consumer protection framework for the entire financial system that will empower and require regulators to pursue consumer protection for the financial activities under their jurisdiction. It has recommended legislative action on two fronts: prevention and cure.Prevention requires regulation-making and enforcement across the entire financial system from the viewpoint of consumer interests. For example, regulation may prohibit use of certain unfair terms of contract, which unreasonably favor the financial service provider at the expense of consumers.Cure requires providing consumers access to effective grievance redress mechanisms. The Report of the Financial Sector Legislative Reforms Commission, has recommended a two-tiered system of grievance redress. First, there should be mandated grievance redress mechanism within each financial service provider. Second, it has recommended an Ombudsman- like mechanism to redress consumer grievances.Consumer Protection for Retail Consumers |
542 | The vulnerability of consumers reflects a major gap in Indian financial regulation. The Financial Sector Legislative Reforms Commission (FSLRC) has recommended the adoption of a consolidated consumer protection framework for the entire financial system that will empower and require regulators to pursue consumer protection for the financial activities under their jurisdiction. It has recommended legislative action on two fronts: prevention and cure.Prevention requires regulation-making and enforcement across the entire financial system from the viewpoint of consumer interests. For example, regulation may prohibit use of certain unfair terms of contract, which unreasonably favor the financial service provider at the expense of consumers.Cure requires providing consumers access to effective grievance redress mechanisms. The Report of the Financial Sector Legislative Reforms Commission, has recommended a two-tiered system of grievance redress. First, there should be mandated grievance redress mechanism within each financial service provider. Second, it has recommended an Ombudsman- like mechanism to redress consumer grievances.Consumer Protection for Retail ConsumersThe Report of the Financial Sector Legislative Reforms Commission, report recommends giving certain rights and protections to retail consumers. Retail consumers are individuals and small organisations. |
543 | Prevention requires regulation-making and enforcement across the entire financial system from the viewpoint of consumer interests. For example, regulation may prohibit use of certain unfair terms of contract, which unreasonably favor the financial service provider at the expense of consumers.Cure requires providing consumers access to effective grievance redress mechanisms. The Report of the Financial Sector Legislative Reforms Commission, has recommended a two-tiered system of grievance redress. First, there should be mandated grievance redress mechanism within each financial service provider. Second, it has recommended an Ombudsman- like mechanism to redress consumer grievances.Consumer Protection for Retail ConsumersThe Report of the Financial Sector Legislative Reforms Commission, report recommends giving certain rights and protections to retail consumers. Retail consumers are individuals and small organisations.It is envisaged that the regulators will specify by regulation: |
544 | Cure requires providing consumers access to effective grievance redress mechanisms. The Report of the Financial Sector Legislative Reforms Commission, has recommended a two-tiered system of grievance redress. First, there should be mandated grievance redress mechanism within each financial service provider. Second, it has recommended an Ombudsman- like mechanism to redress consumer grievances.Consumer Protection for Retail ConsumersThe Report of the Financial Sector Legislative Reforms Commission, report recommends giving certain rights and protections to retail consumers. Retail consumers are individuals and small organisations.It is envisaged that the regulators will specify by regulation:A cap on the value of the financial product or financial service, below which a consumer is considered a retail consumer; and |
545 | The Report of the Financial Sector Legislative Reforms Commission, report recommends giving certain rights and protections to retail consumers. Retail consumers are individuals and small organisations.It is envisaged that the regulators will specify by regulation:A cap on the value of the financial product or financial service, below which a consumer is considered a retail consumer; andA cap on the net asset value or turnover for organisations, below which such organisations may be considered retail consumers, as long as the value of the financial product or financial service they are availing or looking to avail is less than the cap specified above. Every regulator should specify these caps to create a category of retail consumers in the specific sector(s) it is regulating.Framing RegulationsThe FSLRC Analysis and Recommendations, lays down the key features of the desired regulation making system, which are: |
546 | A cap on the net asset value or turnover for organisations, below which such organisations may be considered retail consumers, as long as the value of the financial product or financial service they are availing or looking to avail is less than the cap specified above. Every regulator should specify these caps to create a category of retail consumers in the specific sector(s) it is regulating.Framing RegulationsThe FSLRC Analysis and Recommendations, lays down the key features of the desired regulation making system, which are:The regulator will have to publish the following documents in the process of formulating new regulations:Draft regulations; |
547 | Framing RegulationsThe FSLRC Analysis and Recommendations, lays down the key features of the desired regulation making system, which are:The regulator will have to publish the following documents in the process of formulating new regulations:Draft regulations;Jurisdiction clause to identify the legal provision under which the proposed regulations are being made, and the manner in which the regulation is consistent with the principles in the concerned legislation(s). If the parent legislation does not specifically refer to the subject matter of regulations, the regulator will have to establish a logical connection between the subject matter and the empowering provision in the law; |
548 | The FSLRC Analysis and Recommendations, lays down the key features of the desired regulation making system, which are:The regulator will have to publish the following documents in the process of formulating new regulations:Draft regulations;Jurisdiction clause to identify the legal provision under which the proposed regulations are being made, and the manner in which the regulation is consistent with the principles in the concerned legislation(s). If the parent legislation does not specifically refer to the subject matter of regulations, the regulator will have to establish a logical connection between the subject matter and the empowering provision in the law;Astatement of the problem or market failure that the regulator seeks to address through the proposed regulations, which will be used to test the effectiveness with which the regulations address the stated problem. The statement must contain: (a) The principles governing the proposed regulations; and (b) The outcome the regulator seeks to achieve through the regulation; and |
549 | The regulator will have to publish the following documents in the process of formulating new regulations:Draft regulations;Jurisdiction clause to identify the legal provision under which the proposed regulations are being made, and the manner in which the regulation is consistent with the principles in the concerned legislation(s). If the parent legislation does not specifically refer to the subject matter of regulations, the regulator will have to establish a logical connection between the subject matter and the empowering provision in the law;Astatement of the problem or market failure that the regulator seeks to address through the proposed regulations, which will be used to test the effectiveness with which the regulations address the stated problem. The statement must contain: (a) The principles governing the proposed regulations; and (b) The outcome the regulator seeks to achieve through the regulation; andAn analysis of the costs and benefits of the proposed regulation. This is required because every regulatory intervention imposes certain costs on regulated entities and the system as a whole. |
550 | Draft regulations;Jurisdiction clause to identify the legal provision under which the proposed regulations are being made, and the manner in which the regulation is consistent with the principles in the concerned legislation(s). If the parent legislation does not specifically refer to the subject matter of regulations, the regulator will have to establish a logical connection between the subject matter and the empowering provision in the law;Astatement of the problem or market failure that the regulator seeks to address through the proposed regulations, which will be used to test the effectiveness with which the regulations address the stated problem. The statement must contain: (a) The principles governing the proposed regulations; and (b) The outcome the regulator seeks to achieve through the regulation; andAn analysis of the costs and benefits of the proposed regulation. This is required because every regulatory intervention imposes certain costs on regulated entities and the system as a whole.The Commission recommends that regulations be drafted in a manner that minimises these compliance costs. In some cases where a pure numerical value based cost-benefit analysis is not possible, the regulator should provide the best possible analysis and reasoning for its choice of intervention. |
551 | Jurisdiction clause to identify the legal provision under which the proposed regulations are being made, and the manner in which the regulation is consistent with the principles in the concerned legislation(s). If the parent legislation does not specifically refer to the subject matter of regulations, the regulator will have to establish a logical connection between the subject matter and the empowering provision in the law;Astatement of the problem or market failure that the regulator seeks to address through the proposed regulations, which will be used to test the effectiveness with which the regulations address the stated problem. The statement must contain: (a) The principles governing the proposed regulations; and (b) The outcome the regulator seeks to achieve through the regulation; andAn analysis of the costs and benefits of the proposed regulation. This is required because every regulatory intervention imposes certain costs on regulated entities and the system as a whole.The Commission recommends that regulations be drafted in a manner that minimises these compliance costs. In some cases where a pure numerical value based cost-benefit analysis is not possible, the regulator should provide the best possible analysis and reasoning for its choice of intervention.After publishing the above documents, the regulator will specify a designated time for receiving comments from the public on the regulations and the accompanying documents. |
552 | Astatement of the problem or market failure that the regulator seeks to address through the proposed regulations, which will be used to test the effectiveness with which the regulations address the stated problem. The statement must contain: (a) The principles governing the proposed regulations; and (b) The outcome the regulator seeks to achieve through the regulation; andAn analysis of the costs and benefits of the proposed regulation. This is required because every regulatory intervention imposes certain costs on regulated entities and the system as a whole.The Commission recommends that regulations be drafted in a manner that minimises these compliance costs. In some cases where a pure numerical value based cost-benefit analysis is not possible, the regulator should provide the best possible analysis and reasoning for its choice of intervention.After publishing the above documents, the regulator will specify a designated time for receiving comments from the public on the regulations and the accompanying documents. |
553 | An analysis of the costs and benefits of the proposed regulation. This is required because every regulatory intervention imposes certain costs on regulated entities and the system as a whole.The Commission recommends that regulations be drafted in a manner that minimises these compliance costs. In some cases where a pure numerical value based cost-benefit analysis is not possible, the regulator should provide the best possible analysis and reasoning for its choice of intervention.After publishing the above documents, the regulator will specify a designated time for receiving comments from the public on the regulations and the accompanying documents.The draft Code will ensure that the time period and the mode of participation specified by the regulator is appropriate to allow for widespread public participation.Notices |
554 | After publishing the above documents, the regulator will specify a designated time for receiving comments from the public on the regulations and the accompanying documents.The draft Code will ensure that the time period and the mode of participation specified by the regulator is appropriate to allow for widespread public participation.NoticesOne of the steps the IFC, takes to ensure transparency and accountability is by requiring the standardisation of notices sent to regulated entities. The serving of a notice fulfills one of the requirements of the principles of natural justice. It seeks to give the recipient necessary information to respond to a regulator effectively, in order to defend his/her actions.TransparencyTransparency refers to the practice of disclosing appropriate information to the public about the workings of an organisation, including the decision making processes as well as outcomes.The provisions of the IFC, regarding transparency are: |
555 | One of the steps the IFC, takes to ensure transparency and accountability is by requiring the standardisation of notices sent to regulated entities. The serving of a notice fulfills one of the requirements of the principles of natural justice. It seeks to give the recipient necessary information to respond to a regulator effectively, in order to defend his/her actions.TransparencyTransparency refers to the practice of disclosing appropriate information to the public about the workings of an organisation, including the decision making processes as well as outcomes.The provisions of the IFC, regarding transparency are:Definition of the term ‘publish’.The process of making regulations, and requiring publication of drafts of proposed regulations;Publication of general and special guidance;The requirement that a mandatory review of all regulations take place periodically, and the result of the review be published;The publication of comments received during the rulemaking process; and |
556 | The process of making regulations, and requiring publication of drafts of proposed regulations;Publication of general and special guidance;The requirement that a mandatory review of all regulations take place periodically, and the result of the review be published;The publication of comments received during the rulemaking process; andThe minimum standard for publication of information.Transparency in Board MeetingsTransparency in board meetings refers to the practice of allowing public scrutiny of the work of the board’s crucial functions.The boards of regulators have a critical role in ensuring good governance in the financial system, both by ensuring that best practices apply to regulators, and by creating a regulatory environment where good governance norms are upheld. Given this central role of boards, the FSLRC Analysis and Recommendations, has made explicit reference to the need for transparency in board meetings.Reporting |
557 | The boards of regulators have a critical role in ensuring good governance in the financial system, both by ensuring that best practices apply to regulators, and by creating a regulatory environment where good governance norms are upheld. Given this central role of boards, the FSLRC Analysis and Recommendations, has made explicit reference to the need for transparency in board meetings.ReportingReporting refers to the practice of measuring, recording and publishing data and information about an organisation’s activities, measured against the organisation’s objectives. |
558 | ReportingReporting refers to the practice of measuring, recording and publishing data and information about an organisation’s activities, measured against the organisation’s objectives.Effective reporting results in immediate and clear benefits to regulated entities and consumers. When regulators declare how they intend to perform their functions and fulfill their objectives in their reports, regulated entities better understand the nature and context of regulation imposed on them. This helps regulated entities to account for compliance costs. It also makes regulatory action more predictable and consistent, thereby increasing its legitimacy.Approvals |
559 | Effective reporting results in immediate and clear benefits to regulated entities and consumers. When regulators declare how they intend to perform their functions and fulfill their objectives in their reports, regulated entities better understand the nature and context of regulation imposed on them. This helps regulated entities to account for compliance costs. It also makes regulatory action more predictable and consistent, thereby increasing its legitimacy.ApprovalsApprovals refer to the permissions granted by regulators and government to carry out any regulated activity. Committing to a time-bound approval process increases predictability, and this helps firms to rationally plan for rollout of products and services. Commitment to clear service-level targets also lowers administrative and compliance costs, since time- consuming status checks and follow-up calls become unnecessary.Investigation |
560 | Approvals refer to the permissions granted by regulators and government to carry out any regulated activity. Committing to a time-bound approval process increases predictability, and this helps firms to rationally plan for rollout of products and services. Commitment to clear service-level targets also lowers administrative and compliance costs, since time- consuming status checks and follow-up calls become unnecessary.InvestigationInvestigation refers to the process by which the regulator determines if there has been a violation of an provision of the law or subordinate regulation that the regulator enforces. |
561 | InvestigationInvestigation refers to the process by which the regulator determines if there has been a violation of an provision of the law or subordinate regulation that the regulator enforces.The rule of law in the financial sector would be further enhanced where regulators assign investigative duties to specialized staff, who are not involved making a final evaluation as to whether a violation has occurred, and what penalties to impose. This is already being done by most regulators. The IFC, however requires clearer structure to the investigative process. The investigating staff would present the results of their investigation to a separate cell or specialized group within the regulatory body, whose job it is to determine violations and penalties.AdjudicationBoth regulators and regulated entities benefit when adjudicatory decisions are viewed as legitimate, are easy to understand, and |
562 | AdjudicationBoth regulators and regulated entities benefit when adjudicatory decisions are viewed as legitimate, are easy to understand, andserve as guidance to other parties in the future. For this reason, the adjudication process should mandate that adjudicatory decisions be accompanied by a reasoned opinion. An effective, transparent, fair adjudication process, accompanied by clear, well-reasoned decisions, is a critical mechanism for removing regulatory uncertainty.Imposition of PenaltyWhile making regulations on the imposition of penalties in a proportional manner, regulators must consider the following factors (in addition to existing law):The nature and seriousness of the violation, including whether it was deliberate, reckless or negligent;The consequence and impact of the violation, including the extent of unfair enrichment of the violator, loss caused or likely to be caused;The conduct of the violator after the occurrence of the violation;and |
563 | The nature and seriousness of the violation, including whether it was deliberate, reckless or negligent;The consequence and impact of the violation, including the extent of unfair enrichment of the violator, loss caused or likely to be caused;The conduct of the violator after the occurrence of the violation;andPrior violations or offences committed by the person.REGULATORY FRAMEWORK |
564 | andPrior violations or offences committed by the person.REGULATORY FRAMEWORKThe regulation and supervision of the financial system in India is carried out by different regulatory authorities. The Reserve Bank of India (RBI) regulates and supervises the major part of the financial system. The supervisory role of the RBI covers commercial banks, urban cooperative banks (UCBs), some financial institutions and non- banking finance companies (NBFCs). Some of the financial institutions, in turn, regulate or supervise other institutions in the financial sector, for instance, Regional Rural Banks and the Co-operative banks are supervised by National Bank for Agriculture and Rural Development (NABARD); and housing finance companies by National Housing Bank(NHB). Department of Company Affairs (DCA), Government of India regulates deposit taking activities of corporate, other than NBFCS registered under companies Act, but not those which are under separate statutes. The Registrar of Cooperatives of different states in the case of single state cooperatives and the Central Government in the case of multi-state cooperatives are joint regulators, with the RBI for UCBs, and with NABARD for rural cooperatives. Whereas RBI and NABARD are concerned with the banking functions of the cooperatives, management control rests with the State/ Central Government. This “dual control” impacts the supervision and regulation of the cooperative banks. The capital market, mutual funds, and other capital market intermediaries are regulated by Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA) regulates the insurance sector; and the Pension Funds Regulatory and Development Authority (PFRDA) regulates the pension funds. |
565 | Prior violations or offences committed by the person.REGULATORY FRAMEWORKThe regulation and supervision of the financial system in India is carried out by different regulatory authorities. The Reserve Bank of India (RBI) regulates and supervises the major part of the financial system. The supervisory role of the RBI covers commercial banks, urban cooperative banks (UCBs), some financial institutions and non- banking finance companies (NBFCs). Some of the financial institutions, in turn, regulate or supervise other institutions in the financial sector, for instance, Regional Rural Banks and the Co-operative banks are supervised by National Bank for Agriculture and Rural Development (NABARD); and housing finance companies by National Housing Bank(NHB). Department of Company Affairs (DCA), Government of India regulates deposit taking activities of corporate, other than NBFCS registered under companies Act, but not those which are under separate statutes. The Registrar of Cooperatives of different states in the case of single state cooperatives and the Central Government in the case of multi-state cooperatives are joint regulators, with the RBI for UCBs, and with NABARD for rural cooperatives. Whereas RBI and NABARD are concerned with the banking functions of the cooperatives, management control rests with the State/ Central Government. This “dual control” impacts the supervision and regulation of the cooperative banks. The capital market, mutual funds, and other capital market intermediaries are regulated by Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA) regulates the insurance sector; and the Pension Funds Regulatory and Development Authority (PFRDA) regulates the pension funds. |
566 | REGULATORY FRAMEWORKThe regulation and supervision of the financial system in India is carried out by different regulatory authorities. The Reserve Bank of India (RBI) regulates and supervises the major part of the financial system. The supervisory role of the RBI covers commercial banks, urban cooperative banks (UCBs), some financial institutions and non- banking finance companies (NBFCs). Some of the financial institutions, in turn, regulate or supervise other institutions in the financial sector, for instance, Regional Rural Banks and the Co-operative banks are supervised by National Bank for Agriculture and Rural Development (NABARD); and housing finance companies by National Housing Bank(NHB). Department of Company Affairs (DCA), Government of India regulates deposit taking activities of corporate, other than NBFCS registered under companies Act, but not those which are under separate statutes. The Registrar of Cooperatives of different states in the case of single state cooperatives and the Central Government in the case of multi-state cooperatives are joint regulators, with the RBI for UCBs, and with NABARD for rural cooperatives. Whereas RBI and NABARD are concerned with the banking functions of the cooperatives, management control rests with the State/ Central Government. This “dual control” impacts the supervision and regulation of the cooperative banks. The capital market, mutual funds, and other capital market intermediaries are regulated by Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA) regulates the insurance sector; and the Pension Funds Regulatory and Development Authority (PFRDA) regulates the pension funds.In India, the capital market is regulated by the Capital Markets Division of the Department of Economic Affairs, Ministry of Finance. The division is responsible for formulating the policies related to the orderly growth and development of the securities markets (i.e. share, debt and derivatives) as well as protecting the interest of the investors. In particular, it is responsible for (i) institutional reforms in the securities markets, (ii) building regulatory and market institutions, (iii) strengthening investor protection mechanism, and (iv) providing efficient legislative framework for securities markets, such as Securities and Exchange Board of India Act, 1992 (SEBI Act, 1992); Securities Contracts (Regulation) Act, 1956; and the Depositories Act, 1996. The division administers these legislations and the rules framed thereunder. |
567 | REGULATORY FRAMEWORKThe regulation and supervision of the financial system in India is carried out by different regulatory authorities. The Reserve Bank of India (RBI) regulates and supervises the major part of the financial system. The supervisory role of the RBI covers commercial banks, urban cooperative banks (UCBs), some financial institutions and non- banking finance companies (NBFCs). Some of the financial institutions, in turn, regulate or supervise other institutions in the financial sector, for instance, Regional Rural Banks and the Co-operative banks are supervised by National Bank for Agriculture and Rural Development (NABARD); and housing finance companies by National Housing Bank(NHB). Department of Company Affairs (DCA), Government of India regulates deposit taking activities of corporate, other than NBFCS registered under companies Act, but not those which are under separate statutes. The Registrar of Cooperatives of different states in the case of single state cooperatives and the Central Government in the case of multi-state cooperatives are joint regulators, with the RBI for UCBs, and with NABARD for rural cooperatives. Whereas RBI and NABARD are concerned with the banking functions of the cooperatives, management control rests with the State/ Central Government. This “dual control” impacts the supervision and regulation of the cooperative banks. The capital market, mutual funds, and other capital market intermediaries are regulated by Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA) regulates the insurance sector; and the Pension Funds Regulatory and Development Authority (PFRDA) regulates the pension funds.In India, the capital market is regulated by the Capital Markets Division of the Department of Economic Affairs, Ministry of Finance. The division is responsible for formulating the policies related to the orderly growth and development of the securities markets (i.e. share, debt and derivatives) as well as protecting the interest of the investors. In particular, it is responsible for (i) institutional reforms in the securities markets, (ii) building regulatory and market institutions, (iii) strengthening investor protection mechanism, and (iv) providing efficient legislative framework for securities markets, such as Securities and Exchange Board of India Act, 1992 (SEBI Act, 1992); Securities Contracts (Regulation) Act, 1956; and the Depositories Act, 1996. The division administers these legislations and the rules framed thereunder. |
568 | The regulation and supervision of the financial system in India is carried out by different regulatory authorities. The Reserve Bank of India (RBI) regulates and supervises the major part of the financial system. The supervisory role of the RBI covers commercial banks, urban cooperative banks (UCBs), some financial institutions and non- banking finance companies (NBFCs). Some of the financial institutions, in turn, regulate or supervise other institutions in the financial sector, for instance, Regional Rural Banks and the Co-operative banks are supervised by National Bank for Agriculture and Rural Development (NABARD); and housing finance companies by National Housing Bank(NHB). Department of Company Affairs (DCA), Government of India regulates deposit taking activities of corporate, other than NBFCS registered under companies Act, but not those which are under separate statutes. The Registrar of Cooperatives of different states in the case of single state cooperatives and the Central Government in the case of multi-state cooperatives are joint regulators, with the RBI for UCBs, and with NABARD for rural cooperatives. Whereas RBI and NABARD are concerned with the banking functions of the cooperatives, management control rests with the State/ Central Government. This “dual control” impacts the supervision and regulation of the cooperative banks. The capital market, mutual funds, and other capital market intermediaries are regulated by Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA) regulates the insurance sector; and the Pension Funds Regulatory and Development Authority (PFRDA) regulates the pension funds.In India, the capital market is regulated by the Capital Markets Division of the Department of Economic Affairs, Ministry of Finance. The division is responsible for formulating the policies related to the orderly growth and development of the securities markets (i.e. share, debt and derivatives) as well as protecting the interest of the investors. In particular, it is responsible for (i) institutional reforms in the securities markets, (ii) building regulatory and market institutions, (iii) strengthening investor protection mechanism, and (iv) providing efficient legislative framework for securities markets, such as Securities and Exchange Board of India Act, 1992 (SEBI Act, 1992); Securities Contracts (Regulation) Act, 1956; and the Depositories Act, 1996. The division administers these legislations and the rules framed thereunder.India has a legacy financial regulatory architecture. The present work allocation between RBI, SEBI, IRDA, PFRDA, and Forward Market |
569 | In India, the capital market is regulated by the Capital Markets Division of the Department of Economic Affairs, Ministry of Finance. The division is responsible for formulating the policies related to the orderly growth and development of the securities markets (i.e. share, debt and derivatives) as well as protecting the interest of the investors. In particular, it is responsible for (i) institutional reforms in the securities markets, (ii) building regulatory and market institutions, (iii) strengthening investor protection mechanism, and (iv) providing efficient legislative framework for securities markets, such as Securities and Exchange Board of India Act, 1992 (SEBI Act, 1992); Securities Contracts (Regulation) Act, 1956; and the Depositories Act, 1996. The division administers these legislations and the rules framed thereunder.India has a legacy financial regulatory architecture. The present work allocation between RBI, SEBI, IRDA, PFRDA, and Forward Market |
570 | In India, the capital market is regulated by the Capital Markets Division of the Department of Economic Affairs, Ministry of Finance. The division is responsible for formulating the policies related to the orderly growth and development of the securities markets (i.e. share, debt and derivatives) as well as protecting the interest of the investors. In particular, it is responsible for (i) institutional reforms in the securities markets, (ii) building regulatory and market institutions, (iii) strengthening investor protection mechanism, and (iv) providing efficient legislative framework for securities markets, such as Securities and Exchange Board of India Act, 1992 (SEBI Act, 1992); Securities Contracts (Regulation) Act, 1956; and the Depositories Act, 1996. The division administers these legislations and the rules framed thereunder.India has a legacy financial regulatory architecture. The present work allocation between RBI, SEBI, IRDA, PFRDA, and Forward MarketCommission (FMC) – was not designed; it has evolved over the years, with a sequence of piecemeal decisions responding to immediate pressures from time to time. Each regulator has their own rules on registration, code of conduct, commissions and fees to monitor the product providers and distributors. RBI, SEBI and IRDA have grievance redress procedures through sector financial Ombudsmen services. |
571 | India has a legacy financial regulatory architecture. The present work allocation between RBI, SEBI, IRDA, PFRDA, and Forward MarketCommission (FMC) – was not designed; it has evolved over the years, with a sequence of piecemeal decisions responding to immediate pressures from time to time. Each regulator has their own rules on registration, code of conduct, commissions and fees to monitor the product providers and distributors. RBI, SEBI and IRDA have grievance redress procedures through sector financial Ombudsmen services. |
572 | India has a legacy financial regulatory architecture. The present work allocation between RBI, SEBI, IRDA, PFRDA, and Forward MarketCommission (FMC) – was not designed; it has evolved over the years, with a sequence of piecemeal decisions responding to immediate pressures from time to time. Each regulator has their own rules on registration, code of conduct, commissions and fees to monitor the product providers and distributors. RBI, SEBI and IRDA have grievance redress procedures through sector financial Ombudsmen services.The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act, 1992, in order to protect the interests of the investors in securities as well as promote the development of the capital market. It involves regulating the business in stock exchanges; supervising the working of stock brokers, share transfer agents, merchant bankers, underwriters, etc; as well as prohibiting unfair trade practices in the securities market. The following departments of SEBI take care of the activities in the secondary market:- |
573 | Commission (FMC) – was not designed; it has evolved over the years, with a sequence of piecemeal decisions responding to immediate pressures from time to time. Each regulator has their own rules on registration, code of conduct, commissions and fees to monitor the product providers and distributors. RBI, SEBI and IRDA have grievance redress procedures through sector financial Ombudsmen services.The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act, 1992, in order to protect the interests of the investors in securities as well as promote the development of the capital market. It involves regulating the business in stock exchanges; supervising the working of stock brokers, share transfer agents, merchant bankers, underwriters, etc; as well as prohibiting unfair trade practices in the securities market. The following departments of SEBI take care of the activities in the secondary market:- |
574 | Commission (FMC) – was not designed; it has evolved over the years, with a sequence of piecemeal decisions responding to immediate pressures from time to time. Each regulator has their own rules on registration, code of conduct, commissions and fees to monitor the product providers and distributors. RBI, SEBI and IRDA have grievance redress procedures through sector financial Ombudsmen services.The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act, 1992, in order to protect the interests of the investors in securities as well as promote the development of the capital market. It involves regulating the business in stock exchanges; supervising the working of stock brokers, share transfer agents, merchant bankers, underwriters, etc; as well as prohibiting unfair trade practices in the securities market. The following departments of SEBI take care of the activities in the secondary market:-Market Intermediaries Regulation and Supervision Department (MIRSD) - concerned with the registration, monitoring, supervision, inspection, investor grievances and policy related issues of all market intermediaries in respect of all segments of the markets, such as equity, equity derivatives, debt and debt related derivatives. |
575 | The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act, 1992, in order to protect the interests of the investors in securities as well as promote the development of the capital market. It involves regulating the business in stock exchanges; supervising the working of stock brokers, share transfer agents, merchant bankers, underwriters, etc; as well as prohibiting unfair trade practices in the securities market. The following departments of SEBI take care of the activities in the secondary market:-Market Intermediaries Regulation and Supervision Department (MIRSD) - concerned with the registration, monitoring, supervision, inspection, investor grievances and policy related issues of all market intermediaries in respect of all segments of the markets, such as equity, equity derivatives, debt and debt related derivatives.Market Regulation Department (MRD) - concerned with formulation of new policies as well as supervising the functioning and operations (except relating to derivatives) of securities exchanges, their subsidiaries, and market institutions such as Clearing and settlement organizations and Depositories. |
576 | The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act, 1992, in order to protect the interests of the investors in securities as well as promote the development of the capital market. It involves regulating the business in stock exchanges; supervising the working of stock brokers, share transfer agents, merchant bankers, underwriters, etc; as well as prohibiting unfair trade practices in the securities market. The following departments of SEBI take care of the activities in the secondary market:-Market Intermediaries Regulation and Supervision Department (MIRSD) - concerned with the registration, monitoring, supervision, inspection, investor grievances and policy related issues of all market intermediaries in respect of all segments of the markets, such as equity, equity derivatives, debt and debt related derivatives.Market Regulation Department (MRD) - concerned with formulation of new policies as well as supervising the functioning and operations (except relating to derivatives) of securities exchanges, their subsidiaries, and market institutions such as Clearing and settlement organizations and Depositories.Corporation Finance Department - deals with matters relating to Issuance and listing of securities, including initial and continuous listing requirements, corporate governance and accounting/ auditing standards, corporate restructuring through Takeovers / buy backs, Delisting etc. |
577 | Market Intermediaries Regulation and Supervision Department (MIRSD) - concerned with the registration, monitoring, supervision, inspection, investor grievances and policy related issues of all market intermediaries in respect of all segments of the markets, such as equity, equity derivatives, debt and debt related derivatives.Market Regulation Department (MRD) - concerned with formulation of new policies as well as supervising the functioning and operations (except relating to derivatives) of securities exchanges, their subsidiaries, and market institutions such as Clearing and settlement organizations and Depositories.Corporation Finance Department - deals with matters relating to Issuance and listing of securities, including initial and continuous listing requirements, corporate governance and accounting/ auditing standards, corporate restructuring through Takeovers / buy backs, Delisting etc.Investment Management department - responsible for registering and regulating mutual funds, venture capital funds, foreign venture capital investors, collective investment schemes, including plantation schemes, Foreign Institutional Investors, Portfolio Managers and Custodians. |
578 | Market Intermediaries Regulation and Supervision Department (MIRSD) - concerned with the registration, monitoring, supervision, inspection, investor grievances and policy related issues of all market intermediaries in respect of all segments of the markets, such as equity, equity derivatives, debt and debt related derivatives.Market Regulation Department (MRD) - concerned with formulation of new policies as well as supervising the functioning and operations (except relating to derivatives) of securities exchanges, their subsidiaries, and market institutions such as Clearing and settlement organizations and Depositories.Corporation Finance Department - deals with matters relating to Issuance and listing of securities, including initial and continuous listing requirements, corporate governance and accounting/ auditing standards, corporate restructuring through Takeovers / buy backs, Delisting etc.Investment Management department - responsible for registering and regulating mutual funds, venture capital funds, foreign venture capital investors, collective investment schemes, including plantation schemes, Foreign Institutional Investors, Portfolio Managers and Custodians.The Integrated Surveillance department - responsible for monitoring market activity through market systems, data from other departments and analytical software. |
579 | Market Regulation Department (MRD) - concerned with formulation of new policies as well as supervising the functioning and operations (except relating to derivatives) of securities exchanges, their subsidiaries, and market institutions such as Clearing and settlement organizations and Depositories.Corporation Finance Department - deals with matters relating to Issuance and listing of securities, including initial and continuous listing requirements, corporate governance and accounting/ auditing standards, corporate restructuring through Takeovers / buy backs, Delisting etc.Investment Management department - responsible for registering and regulating mutual funds, venture capital funds, foreign venture capital investors, collective investment schemes, including plantation schemes, Foreign Institutional Investors, Portfolio Managers and Custodians.The Integrated Surveillance department - responsible for monitoring market activity through market systems, data from other departments and analytical software. |
580 | Corporation Finance Department - deals with matters relating to Issuance and listing of securities, including initial and continuous listing requirements, corporate governance and accounting/ auditing standards, corporate restructuring through Takeovers / buy backs, Delisting etc.Investment Management department - responsible for registering and regulating mutual funds, venture capital funds, foreign venture capital investors, collective investment schemes, including plantation schemes, Foreign Institutional Investors, Portfolio Managers and Custodians.The Integrated Surveillance department - responsible for monitoring market activity through market systems, data from other departments and analytical software.Investigations Department (IVD) - responsible for conducting investigations on potentially illegal market activities, providing referrals to the enforcement department and assisting the enforcement department in enforcing SEBI action against violators. |
581 | Investment Management department - responsible for registering and regulating mutual funds, venture capital funds, foreign venture capital investors, collective investment schemes, including plantation schemes, Foreign Institutional Investors, Portfolio Managers and Custodians.The Integrated Surveillance department - responsible for monitoring market activity through market systems, data from other departments and analytical software.Investigations Department (IVD) - responsible for conducting investigations on potentially illegal market activities, providing referrals to the enforcement department and assisting the enforcement department in enforcing SEBI action against violators.Enforcement Department (ED) - responsible for proceedings related to regulatory action and obtaining redress for violations of securities laws and regulations against all market participants, issuers and individuals and other entities that breach securities laws and regulations. |
582 | The Integrated Surveillance department - responsible for monitoring market activity through market systems, data from other departments and analytical software.Investigations Department (IVD) - responsible for conducting investigations on potentially illegal market activities, providing referrals to the enforcement department and assisting the enforcement department in enforcing SEBI action against violators.Enforcement Department (ED) - responsible for proceedings related to regulatory action and obtaining redress for violations of securities laws and regulations against all market participants, issuers and individuals and other entities that breach securities laws and regulations.Department of Legal Affairs (LAD) - responsible to provide legal counsel to the Board and to its other departments, and to handle non-enforcement litigation. |
583 | Investigations Department (IVD) - responsible for conducting investigations on potentially illegal market activities, providing referrals to the enforcement department and assisting the enforcement department in enforcing SEBI action against violators.Enforcement Department (ED) - responsible for proceedings related to regulatory action and obtaining redress for violations of securities laws and regulations against all market participants, issuers and individuals and other entities that breach securities laws and regulations.Department of Legal Affairs (LAD) - responsible to provide legal counsel to the Board and to its other departments, and to handle non-enforcement litigation.Enquiries and Adjudication Department (EAD) - handle quasi judicial matters and provide timely hearings and initiate adjudication brought by the other Departments against alleged violators who are within SEBI’s disciplinary jurisdiction. |
584 | Investigations Department (IVD) - responsible for conducting investigations on potentially illegal market activities, providing referrals to the enforcement department and assisting the enforcement department in enforcing SEBI action against violators.Enforcement Department (ED) - responsible for proceedings related to regulatory action and obtaining redress for violations of securities laws and regulations against all market participants, issuers and individuals and other entities that breach securities laws and regulations.Department of Legal Affairs (LAD) - responsible to provide legal counsel to the Board and to its other departments, and to handle non-enforcement litigation.Enquiries and Adjudication Department (EAD) - handle quasi judicial matters and provide timely hearings and initiate adjudication brought by the other Departments against alleged violators who are within SEBI’s disciplinary jurisdiction.Office of Investor Assistance and Education (OIAE) - support SEBI’s operations by handling investor complaints centrally and be the focal point of SEBI’s investor education effort. The Office would be the single point interface with investors and would receive complaints relating to all departments, forward to the concerned departments, follow up and respond to investors. |
585 | Enforcement Department (ED) - responsible for proceedings related to regulatory action and obtaining redress for violations of securities laws and regulations against all market participants, issuers and individuals and other entities that breach securities laws and regulations.Department of Legal Affairs (LAD) - responsible to provide legal counsel to the Board and to its other departments, and to handle non-enforcement litigation.Enquiries and Adjudication Department (EAD) - handle quasi judicial matters and provide timely hearings and initiate adjudication brought by the other Departments against alleged violators who are within SEBI’s disciplinary jurisdiction.Office of Investor Assistance and Education (OIAE) - support SEBI’s operations by handling investor complaints centrally and be the focal point of SEBI’s investor education effort. The Office would be the single point interface with investors and would receive complaints relating to all departments, forward to the concerned departments, follow up and respond to investors.General Serviced Department (GSD) - support all of the internal operations of SEBI. |
586 | Department of Legal Affairs (LAD) - responsible to provide legal counsel to the Board and to its other departments, and to handle non-enforcement litigation.Enquiries and Adjudication Department (EAD) - handle quasi judicial matters and provide timely hearings and initiate adjudication brought by the other Departments against alleged violators who are within SEBI’s disciplinary jurisdiction.Office of Investor Assistance and Education (OIAE) - support SEBI’s operations by handling investor complaints centrally and be the focal point of SEBI’s investor education effort. The Office would be the single point interface with investors and would receive complaints relating to all departments, forward to the concerned departments, follow up and respond to investors.General Serviced Department (GSD) - support all of the internal operations of SEBI.Department of Economic and Policy Analysis (DEPA) - maintain the data base for entire capital/ securities market, prepare weekly and monthly report to be sent to Ministry of Finance, prepare papers on regulatory developments or changes in regulatory structures, provide research based input for policy formation by operational departments or senior management, |
587 | Enquiries and Adjudication Department (EAD) - handle quasi judicial matters and provide timely hearings and initiate adjudication brought by the other Departments against alleged violators who are within SEBI’s disciplinary jurisdiction.Office of Investor Assistance and Education (OIAE) - support SEBI’s operations by handling investor complaints centrally and be the focal point of SEBI’s investor education effort. The Office would be the single point interface with investors and would receive complaints relating to all departments, forward to the concerned departments, follow up and respond to investors.General Serviced Department (GSD) - support all of the internal operations of SEBI.Department of Economic and Policy Analysis (DEPA) - maintain the data base for entire capital/ securities market, prepare weekly and monthly report to be sent to Ministry of Finance, prepare papers on regulatory developments or changes in regulatory structures, provide research based input for policy formation by operational departments or senior management,Information Technology Department - perform its role as the technical support group for SEBI. |
588 | Office of Investor Assistance and Education (OIAE) - support SEBI’s operations by handling investor complaints centrally and be the focal point of SEBI’s investor education effort. The Office would be the single point interface with investors and would receive complaints relating to all departments, forward to the concerned departments, follow up and respond to investors.General Serviced Department (GSD) - support all of the internal operations of SEBI.Department of Economic and Policy Analysis (DEPA) - maintain the data base for entire capital/ securities market, prepare weekly and monthly report to be sent to Ministry of Finance, prepare papers on regulatory developments or changes in regulatory structures, provide research based input for policy formation by operational departments or senior management,Information Technology Department - perform its role as the technical support group for SEBI.The Governing Board of the stock exchange consists of elected member directors, government nominees and public representatives. Rules, byelaws and regulations of the stock exchange provide substantial powers to the Executive Director for maintaining efficient and smooth day-to-day functioning of the stock exchange. The governing Board has the responsibility to orderly maintain the well-regulated market. |
589 | General Serviced Department (GSD) - support all of the internal operations of SEBI.Department of Economic and Policy Analysis (DEPA) - maintain the data base for entire capital/ securities market, prepare weekly and monthly report to be sent to Ministry of Finance, prepare papers on regulatory developments or changes in regulatory structures, provide research based input for policy formation by operational departments or senior management,Information Technology Department - perform its role as the technical support group for SEBI.The Governing Board of the stock exchange consists of elected member directors, government nominees and public representatives. Rules, byelaws and regulations of the stock exchange provide substantial powers to the Executive Director for maintaining efficient and smooth day-to-day functioning of the stock exchange. The governing Board has the responsibility to orderly maintain the well-regulated market.LAWS APPLICABLE TO FINANCIAL MARKET |
590 | Information Technology Department - perform its role as the technical support group for SEBI.The Governing Board of the stock exchange consists of elected member directors, government nominees and public representatives. Rules, byelaws and regulations of the stock exchange provide substantial powers to the Executive Director for maintaining efficient and smooth day-to-day functioning of the stock exchange. The governing Board has the responsibility to orderly maintain the well-regulated market.LAWS APPLICABLE TO FINANCIAL MARKETVarious acts, rules, regulations, ordinances, guidelines, clarifications and press releases constitute the legal framework of Indian financial market. The main legislations governing the Financial Market in India are –ActsNegotiable Instruments Act, 1881Reserve Bank of India Act, 1934Banking Regulation Act, 1949Securities Contracts (Regulation) Act, 1956The Securities and Exchange Board of India Act, 1992 (SEBI Act) |
591 | Reserve Bank of India Act, 1934Banking Regulation Act, 1949Securities Contracts (Regulation) Act, 1956The Securities and Exchange Board of India Act, 1992 (SEBI Act)Recovery of Debts Due to Banks and Financial Institutions Act, 1993Depositories Act, 1996Foreign Exchange Management Act, 1999SARFAESI Act, 2002Prevention of Money- Laundering Act, 2002Credit Information Companies (Regulation) Act, 2005Government Securities Act, 2006Payment and Settlement Systems Act, 2007Foreign Contribution (Regulation) Act (FCRA), 2010Companies Act, 2013RulesThe Securities Contract (Regulation) Rules, 1957SEBI (Appeal to Central Government) Rules, 1993SEBI (Procedure for holding inquiry and imposing penalties by adjudicating officer) Rules, 1995SEBI Appellate Tribunal (Procedure) Rules, 1995Depositories (Appeal to Securities Appellate Tribunal) Rules, 2000Depositories (Procedure for holding Inquiry and ImposingPenalties by Adjudicating Officer) Rules, 2005 |
592 | Depositories (Appeal to Securities Appellate Tribunal) Rules, 2000Depositories (Procedure for holding Inquiry and ImposingPenalties by Adjudicating Officer) Rules, 2005The Debts Recovery Tribunal (Procedure) Rules, 1993The Debts Recovery Appellate Tribunal (Procedure) Rules,1994Security Interest (Enforcement) Rules, 2002Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011RegulationsSEBI (Stock-brokers and Sub-brokers) Regulations, 1992SEBI (Prohibition of Insider Trading) Regulations, 1992SEBI (Merchant Bankers) Regulations, 1992SEBI (Portfolio Managers) Regulations, 1993SEBI (Underwriters) Regulations, 1993SEBI (Debenture Trustees) Regulations, 1993Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993SEBI (Bankers to an Issue) Regulations, 1994SEBI (Foreign Institutional Investors) Regulations, 1995SEBI (Depositories and Participants) Regulations, 1996 |
593 | Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993SEBI (Bankers to an Issue) Regulations, 1994SEBI (Foreign Institutional Investors) Regulations, 1995SEBI (Depositories and Participants) Regulations, 1996SEBI (Custodian Of Securities) Regulations, 1996SEBI (Venture Capital Funds) Regulations, 1996SEBI (Mutual Funds) Regulations, 1996SEBI (Buy Back Of Securities) Regulations, 1998SEBI (Credit Rating Agencies) Regulations, 1999SEBI (Collective Investment Schemes) Regulations, 1999SEBI (Foreign Venture Capital Investors) Regulations 2000SEBI (Procedure for Board Meetings) Regulations, 2001SEBI (Issue of Sweat Equity) Regulations, 2002SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003SEBI - Ombudsman Regulations 2003SEBI (Central Database Of Market Participants) Regulations,2003 |
594 | SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003SEBI - Ombudsman Regulations 2003SEBI (Central Database Of Market Participants) Regulations,2003SEBI (Self Regulatory Organizations) regulations, 2004SEBI (Interest Liability Regularisation) Scheme, 2004SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007SEBI (Intermediaries) Regulations, 2008SEBI (Public Offer and Listing of Securitised Debt Instruments) Regulations, 2008SEBI (Issue and Listing of Debt Securities) Regulations, 2008SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009Securities and Exchange Board of India (Delisting Of Equity Shares) Regulations, 2009SEBI (Substantial Acquisition of Shares and Takeovers) (Regulations), 2011SEBI {KYC (Know Your Client) Registration Agency} Regulations, 2011Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 |
595 | Securities and Exchange Board of India (Delisting Of Equity Shares) Regulations, 2009SEBI (Substantial Acquisition of Shares and Takeovers) (Regulations), 2011SEBI {KYC (Know Your Client) Registration Agency} Regulations, 2011Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012SEBI (Investment Advisers) Regulations, 2013SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013SEBI (Listing of Specified Securities on Institutional Trading Platform) Regulations, 2013SEBI(Foreign Portfolio Investors) Regulations, 2014SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2014SEBI (Procedure for Search and Seizure) Regulations, 2014OrdersSEBI (Issuing Observations On Draft Offer Documents Pending Regulatory Actions) Order, 2006SEBI (Framework For Rejection Of Draft Offer Documents) Order, 2012GuidelinesGuidelines for opening of Trading terminals abroadSEBI (Delisting of securities) Guidelines, 2003 |
596 | SEBI (Framework For Rejection Of Draft Offer Documents) Order, 2012GuidelinesGuidelines for opening of Trading terminals abroadSEBI (Delisting of securities) Guidelines, 2003SEBI (Informal Guidance) Scheme, 2003Guidelines for Anti-money laundering measuresSEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999SEBI (Disclosure and Investor Protection Guidelines) 2000Framework for recognition and supervision of stock exchanges / platforms of stock exchanges for small and medium enterprisesSEBI (Disclosure and Investor Protection) Guidelines, 2000SEBI (Aid for Legal Proceedings) Guidelines, 2009Negotiable Instruments Act, 1881Negotiable instruments are of great importance in the business world and by extension in banking. They are instruments for making payments and discharging business obligations. |
597 | Negotiable Instruments Act, 1881Negotiable instruments are of great importance in the business world and by extension in banking. They are instruments for making payments and discharging business obligations.The Negotiable Instruments Act, 1881 does not define a negotiable instrument but merely states, “a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or bearer.” (Section 13)In simple words, negotiable means transferable and instrument means document.Thus, the term, negotiable instrument means a written document which creates a right in favour of some person and which is freely transferable. Although the Act mentions only these three instruments(such as a promissory note, a bill of exchange and cheque), it does not exclude the possibility of adding any other instrument which satisfies the following two conditions of negotiability: |
598 | Thus, the term, negotiable instrument means a written document which creates a right in favour of some person and which is freely transferable. Although the Act mentions only these three instruments(such as a promissory note, a bill of exchange and cheque), it does not exclude the possibility of adding any other instrument which satisfies the following two conditions of negotiability:The instrument should be freely transferable (by delivery or by endorsement. and delivery) by the custom of the trade. Usually, when we transfer any property to somebody, we are required to make a transfer deed, get it registered, pay stamp duty, etc. But, such formalities are not required while transferring a negotiable instrument. The ownership is changed by mere delivery (when payable to the bearer) or by valid endorsement and delivery (when payable to order). Further, while transferring it is also not required to give a notice to the previous holder. |
599 | (such as a promissory note, a bill of exchange and cheque), it does not exclude the possibility of adding any other instrument which satisfies the following two conditions of negotiability:The instrument should be freely transferable (by delivery or by endorsement. and delivery) by the custom of the trade. Usually, when we transfer any property to somebody, we are required to make a transfer deed, get it registered, pay stamp duty, etc. But, such formalities are not required while transferring a negotiable instrument. The ownership is changed by mere delivery (when payable to the bearer) or by valid endorsement and delivery (when payable to order). Further, while transferring it is also not required to give a notice to the previous holder.The person who obtains it in good faith and for value should get it free from all defects, and be entitled to recover the money of the instrument in his own name. This means that a person who receives a negotiable instrument has a clear and undisputable title to the instrument. However, the title of the receiver will be absolute, only if he has got the instrument in good faith and for a consideration. |
600 | (such as a promissory note, a bill of exchange and cheque), it does not exclude the possibility of adding any other instrument which satisfies the following two conditions of negotiability:The instrument should be freely transferable (by delivery or by endorsement. and delivery) by the custom of the trade. Usually, when we transfer any property to somebody, we are required to make a transfer deed, get it registered, pay stamp duty, etc. But, such formalities are not required while transferring a negotiable instrument. The ownership is changed by mere delivery (when payable to the bearer) or by valid endorsement and delivery (when payable to order). Further, while transferring it is also not required to give a notice to the previous holder.The person who obtains it in good faith and for value should get it free from all defects, and be entitled to recover the money of the instrument in his own name. This means that a person who receives a negotiable instrument has a clear and undisputable title to the instrument. However, the title of the receiver will be absolute, only if he has got the instrument in good faith and for a consideration.About the Act |
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