1. By
Akshay Krishnan
Aakash Singh
Reethika S Iyer

2. Regulators
Reserve Bank of India
Commercial Banks
Urban Co-operative
Banks
State and District Central
Co-operative Banks
All India Financial
Institutions: IFCI, IIBI,
Exim Bank, TFCI, SIDBI,
NABARD, NHB
Non-banking Finance
Companies including
Primary Dealers
Government Securities
Market and Money
Market
Foriegn Exchange
Market
Insurance Regulatory and
Development Authority
Insurance Companies:
Public Sector and Private
Sector Life and Non-Life
Securities and Exchange Board
of India
Capital Market, Capital
Market Intermediaries,
Mutual Funds including UTI
II, Venture Capital, FIIs,
Corporate bond Market
State Government
Urban Co-operative
Banks
SIDBI
State Financial Corportaions
State Indutrial Development
Corporate
NABARD
Rural Co-operative Banks
Regional Rural Banks

3. Salient Features Of The Present Regulations
Registration
Code of conduct
Commission & Fee Monitor
Protect interest of the consumer
Product Regulation
REGULATORY CONTROL

4. Problems with multiple regulators in India
Varying Regulatory
Arbitrage
• Mutual Fund vs ULIP
Differing Standard
of Regulation and
Distribution
• Regulations by RBI
• Ponzi Schemes
• Chit Funds (Financial
Sector Regulations)
Overlap between
Laws and Agencies
• Set back of economic
policy
• Black market
development

6. Organisational Structure of SEBI
 SEBI is working as a corporate sector
 Its activities are divided into five departments. Each department is headed
by an executive director.
Departments
Primary Market
Department
Issue Management
and Intermediaries
Department
Secondary Market
Department
Institutional
Investment
Department
Legal and
Investigation
Department

7. Organisational Structure of SEBI (contd.)
 The head office of SEBI is in Mumbai and it has branch office in Kolkata,
Chennai and Delhi.
 SEBI has formed two advisory committees to deal with primary and
secondary markets.
 These committees consist of market players, investors associations and
eminent persons.

8. Objectives of the two Committees are
Only advise
SEBI cannot
force
Regulation and
development of
secondary stock
exchange.
Stock market
Transparency
Changes in
Legal
framework
Company’s
disclosure
requirements
Issue of
securities in
primary market
Regulate
intermediaries

9. Reasons for Establishing SEBI
Malpractices in stock markets such as:
 price rigging,
 unofficial premium on new issue,
 delay in delivery of shares,
 violation of rules and regulations of stock exchange and listing
requirements
Due to these malpractices the customers started losing confidence and faith
in the stock exchange. So government of India decided to set up an agency
or regulatory body known as Securities Exchange Board of India (SEBI).

10. Purpose and Role of SEBI
 SEBI was set up with the main purpose of keeping a check on malpractices
and protect the interest of investors.

11. Functions of SEBI
To meet these objectives SEBI has three important functions. These are:
 Protective functions
 Developmental functions
 Regulatory functions.

12. Protective Functions
These functions are performed by SEBI to protect the interest of investor and
provide safety of investment.
 Check Price Ranging
 Prohibits Insider Trading
 Fraudulent and Unfair Trade Practices
 Undertakes steps to educate investors
 Issues guidelines to protect the interest of debenture-holders
 Investigate cases of insider trading
 Provisions for stiff fine and imprisonment
 Stopped the practice of making preferential allotment of shares unrelated to
market prices

13. Developmental Functions
 To promote and develop activities in stock exchange
 Increase the business in stock exchange.
 Promotes training of intermediaries of the securities market.
 Permitted internet trading through registered stock brokers
 Underwriting made optional to reduce the cost of issue
 Even initial public offer of primary market is permitted through stock
exchange

14. Regulatory Functions
 To regulate the business in stock exchange
 Framed rules and regulations and a code of conduct to regulate the
intermediaries
 Intermediaries have been brought under the regulatory purview
 Private placement has been made more restrictive.
 Registers and regulates the working of stock brokers, sub-brokers, share
transfer agents, trustees, merchant bankers
 Registers and regulates the working of mutual funds etc.
 Regulates takeover of the companies
 Conducts inquiries and audit of stock exchanges.

15. Powers of SEBI
 Powers relating to stock exchanges & intermediaries
 Power to impose monetary penalties
 Power to initiate actions in functions assigned
 Power to regulate insider trading
 Powers under Securities Contracts Act
 Power to regulate business of stock exchanges

17. Who
we are?
1991: Government of
India begins the
economic reforms
programe and financial
sector reforms
1993: Committee on Reforms in
the Insurance Sector, headed by
Mr. R. N. Malhotra, (Retired
Governor, Reserve Bank of India)
set up to recommend reforms.
1994: The Malhotra
Committee recommends
certain reforms having
studied the sector and
hearing out the
stakeholders

18. Private sector to promote
insurance companies
Foreign promoters
Incorporation of independent
regulatory body regulated by
the Parliament body
RECOMMENDED
REFORMS

19. Birth of IRDA
 Insurance Regulatory and Development Authority (IRDA) set up as
autonomous body under the IRDA Act, 1999 and thereon incorporated as
statutory body in 2000
 IRDA’s Mission: To protect the interests of policyholders, to regulate,
promote and ensure orderly growth of the insurance industry and for
matters connected therewith or incidental thereto.

20. IRDA’s Activities
 Frames regulations for insurance industry in terms of Section 114A of the
Insurance Act 1938
 From the year 2000 has registered new insurance companies in
accordance with regulations
 Monitors insurance sector activities for healthy development of the
industry and protection of policyholders’ interests

21. Functions and Duties of IRDA
Ensuring insurance
coverage in rural
areas and of
vulnerable sections
of society
Ensuring the
maintenance of
solvency margin
by insurance
companies
Regulating
investment of
policyholders’
funds by
insurance
companies
Specifying
financial
reporting
norms of
insurance
companies
Regulating and
overseeing
premium rates
and terms
of non-life
insurance covers
Promoting
professional
organizatio
ns in
insurance
Registering
and
regulating
insurance
companies
Protecting
policyholder
s’ interests
Licensing and
establishing
norms for
insurance
intermediaries

22. Indian Insurance Market
52 Insurance
Companies
24 Life
Insurance
Business
28 Non – Life
Insurance

23. Insurance Industry In India
Insurance Industry
In India
Life Insurance
Non Life Insurance
General insurance
Motor
Insurance
Fire Insurance
Health
Insurance
Marine
Insurance

24. Policy Holders Grievances Redressal System

25. Ombudsman
Created by
Government of
India
Settle
complaints of
individual
policyholders
Cost-effective,
efficient and
impartial
12 Insurance
Ombudsman in
different
locations

26. You can approach the Ombudsman with
complaint if:
 You have first approached your insurance company with the complaint
and
 They have not resolved it
 Not resolved it to your satisfaction or
 Not responded to it at all for 30 days
 Your complaint pertains to any policy you have taken in your capacity as
an individual and
 The value of the claim including expenses claimed is not above Rs 20 lakh

27. The recommended settlement process
 Act as counselor and mediator
 Arrive at a fair recommendation
Award:
 If a settlement by recommendation does not work, the Ombudsman will:
 Pass an award within 3 months of receiving the complaint and which will be
 A speaking award with the detailed reasoning
 Binding on the insurance company but
 Not binding on the policyholder
 The Ombudsman can also award an ex-gratia payment
Once the Award is passed
 You have to accept the award in writing and the insurance company has to be informed of it
within 30 days
 The Insurance company has to comply with the award in 15 days after that.