Financial Regulators A financial regulator is a

Transcript:Financial Regulators A financial regulator is a:
Financial Regulators A financial regulator is a constituent of the financial system. Financial regulators supervise, monitor and regulate various constituents of the system. Their objective is to develop fair & efficient markets and ensure financial stability. Making & enforcing regulations Preventing malpractices, manipulations & punishing misconducts Monitoring & protecting various constituents of the system Ensuring the competence of the constituents Main Responsibility RBI IRDA SEBI NHB PFRDA RBI Meaning Role & Functions History & Origin Structure & Hierarchy Departments RBI IRDA Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. IRDA (Insurance Regulatory and Development Authority) is the national regulatory body for Insurance industry (both Life and Non-Life Insurance Companies) under the Government of India, situated at Hyderabad. Head Office in Hyderabad The key objective of the IRDA includes promotion of competition so as to enhance customer satisfaction thru increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority specify the composition of Authority The Authority is a ten member team consisting of : (a) a Chairman; (b) five whole-time members; (c) four part-time members, (all appointed by the Government of India) Composition The whole time members shall hold office for 5yrs or until the age of 62 which ever is earlier. The chairman shall hold the office for 5 yrs until the age of 65 yrs whichever is earlier. The part time members will hold the office for not more than 5 yrs. The above said members are to be appointed by the central government from among the persons of ability and standing who have knowledge or experience in life insurance, general insurance, actuarial science, finance, economics, law, accountancy, administration or any other discipline which would, in the opinion of central government. To take care of the policyholders interest. To open up the insurance sector for private sector. To ensure continued financial soundness and solvency. To regulate insurance and reinsurance companies. To eliminate dishonesty and unhealthy competitions. To supervise the activities of intermediaries in insurance sector. To amend the Insurance Act 1938