Regulatory Bodies (1)

8/2/2019 Regulatory Bodies (1)

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Regulatory bodies


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Department of Companies Affairs (DCA)

Department of Economic Affairs (DEA)

Securities and Exchange Board of India (SEBI)

Forward Market Commission (FMC)

Reserve Bank of India (RBI)

Insurance Regulatory Development Authority (IRDI)

Association of Mutual Funds in India (AMFI)

Registrars Association of India (RAIN)

Microfinance Institutions Network (MFIN)


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Department of

Companies Affairs(DCA)


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1. Vision

To facilitate corporate growth with enlightened regulation.

2. Mission

i. To be responsive and sensitive to changes in the business environment

ii. Suitably formulate and modify corporate laws

iii. Regulations from time-to-time.

3. Organization Structure

The Ministry has a three tier organization setup as per provisions in the Companies

Act, 1956. The organization includes

i. The ministry at new delhi,

ii. The regional directors at mumbai, kolkata, chennai, noida, NE region and

ahmadabad,

iii. 20offices of registrar of companies in states and union territories and 19 offices

ofofficial Liquidators.


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Functions

1. Administration of the Companies Act, 1956 and other related Acts.

2. Revision of Companies Act, 1956.

3. Formulation of Policies and Rules under various Acts administered by the Ministry.

4. Implementation of Competition Act, rules & regulations framed there under.

5. E-Governance in MCA.

6. Undertaking Investor education programs/activities.7. Regulation of Institute of

Charted Accountants of India (ICAI),

Institute of Company Secretaries of India (ICSI) &

Institute of Cost and Works Accountants of India (ICWA)


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1. Simplified laws to facilitate effective compliance and

regulatory regime.

2. Online delivery of all registry related services with speed,

certainty and transparency, access to public information andeffective monitoring of statutory complianceby the

companies

3. To encourage corporate sector to adopt good corporate

governance practices and corporate social responsibility

4. To promote investor education and awareness for creationof appropriate business environment that facilitate growth of

corporate sector in the country

5. Cost audit

6. Effective enforcement of provisions of companies act, 1956.


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6.Stakeholders Consulted: The Ministry has taken into account the views of stakeholders through chambers of

commerce & industries, the accountancy and company secretarial professions,

investors, parliamentarians etc.

The stakeholder views have been gathered during various formal and informal

interactions in formulating the Charter.


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Department of Economic affairs Agency of the Union Government

Formulates and monitors country's

economic policies and programs

having a bearing on domestic and

international aspects of economic

management.

Prepares Union Budget annually

(excluding the Railway Budget ).


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Functions

Formulation and monitoring of macroeconomic policies, including issues relating

to fiscal policy and public finance, inflation, public debt management and the

functioning of Capital Market including Stock Exchanges.

In the above context, it looks at ways and means to raise internal resources

through taxation, market borrowings and mobilization of small savings.

Monitoring and raising of external resources through multilateral and bilateral

Official Development Assistance, sovereign borrowings abroad, foreign investments

and monitoring foreign exchange resources including balance of payments.

Production of bank notes and coins of various denominations, postal stationery,

postal stamps; and Cadre management, career planning and training of the Indian

Economic Service (IES).


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Organizational units

Presently, the work of DEA is organised in the following distinct but complementaryDivisions/Units:

Aid, Accounts & Audit Division

Disbursement of loans and grants from multilateral/ bilateral donor agencies

Debt servicing of loans to multilateral/ bilateral donors, Accounting of external assistance, export promotion audit and supply of

management information to credit Divisions.

Budget Division

Preparation of Union budget

Market borrowings, accounting and auditing procedures and financial relationship

with the State Governments.

Mobilization of small savings through the National Savings Institute (NSI).


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Capital Market Division

Policy issues related to development of the securities markets (i.e. share, debt and

derivatives), External Commercial Borrowing (ECB) and administration ofForeign

Exchange Management Act (FEMA), 1999.

Looks after the administrative matters of the Specified Undertaking of Unit Trust of

India (SUUTI), the Securities and Exchange Board of India (SEBI), Securities

Appellate Tribunal (SAT), Pension Funds Regulation & Development Authority

(PFRDA)

Economic Division

Economic advice to the Government on important policy issues relating to macro

management of the economy.


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Forward Market Commission

Chief regulator offorwards and futures markets in

Agency overview- Formed 1953 under the provisions of the Forward Contracts

(Regulation) Act, 1952

Jurisdiction - India

Headquarters - Mumbai, India Agency executive - B.C. Khatua, Chairman

Parent agency - Ministry of Consumer Affairs, Food and Public Distribution

(futures, traded in India, are traditionally on food commodities thus doesnt fall under

finance minisrty as in most of the countries)


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It consists of2 to 4

members appointed by the

Indian Government.

Currently, the Commissionallows commodity trading

in 22 exchanges in India, of

which 3 are national.


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Responsibilities and functions

To advise the Central Government in respect of the recognition or the

withdrawal of recognition from any association or in respect of any other matter

arising out of the administration of the Forward Contracts (Regulation) Act

1952.

To keep forward markets under observation and to take such action in relation to

them in exercise of the powers assigned to it.

To collect and to publish information regarding the trading conditions in respect

of goods to which any of the provisions of the act is made applicable, including

information regarding supply, demand and prices, and to submit to the Central

Government, periodical reports on the working of forward markets relating to such

goods;

To make recommendations generally with a view to improving the organization

and working of forward markets;

To undertake the inspection of the accounts and other documents of any

recognized association or registered association or any member of such association


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Reserve Bank of India

Preamble "...to regulate the issue of Bank

Notes and keeping of reserves

with a view to securing monetary

stability in India and generally to

operate the currency and creditsystem of the country to its

advantage.


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It was set up on the recommendations of the

HILTON Y

OUNG C

OMMI

SSI

ON

It was started as Shareholders Bank with

a paid up capital of5 crs.

established on 1st of April 1935

Initially was located in Kolkata.

It moved to Mumbai in the year1937.

Initially it was privately owned.

It was the1st bank to b eNationalised in 1949.

It has 22 regional offices, most of them in state capitals


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Key roles

Regulator and supervisor of the financial system

Manager of exchange control

Issuer of currency

Banker to the Government

Bank to banks: maintains banking accounts of all

scheduled banks


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Main functions

Monetary Authority:Formulates, implements and monitors the

monetary policy.

Objective: maintaining price stability &

ensuring adequate flow of credit to productive

sectors.

Manager of Foreign Exchange

Manages the FEMA, 1999.

Objective: to facilitate external trade & payment

and promote orderly development &

maintenance of foreign exchange market in

India.

Developmental Role

Performs a wide range of promotional functions

to support national objectives.

Regulator and supervisor of the financialsystem:

Prescribes broad parameters of banking operations

within which the country's banking and financial

system functions.

Objective: maintain public confidence in the

system, protect depositors interest and provide

cost-effective banking services to the public.

Issuer of Currency

Issues and exchanges or destroys currency and

coins not fit for circulation.

Objective: to give the public adequate quantity of

supplies of currency notes and coins and in good

quality.

Related Functions

Banker to the Government: performs merchant

banking function for the central and the state

governments; also acts as their banker.

Banker to banks: maintains banking accounts of allscheduled banks


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Subsidiaries

Fully owned

National Housing bank (

NHB)

Deposit Insurance and Credit

Guarantee Corporation of India (DICGC)

Bharatiya Reserve BankNote Mudran Private Limited (BRBNMPL)

Major stakes

National Bank For Agriculture and RuralDevelopment (NABARD)

The reserve Bank of India has recentlydivested stake in State Bank of India to

the government of India .


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Board for Financial

Supervision

Board for Payment

& Settlement SystemsLocal Boards

Chairman- RBIs governor

Vice-Chairman- Deputy

Governor in charge ofbanking regulation and

supervision

4 members - 4 Directors

from the Central Board for a

term of two years.

ex-officio members -TheDeputy Governors of RBI

Chairman- RBIs governor

Vice chairman- deputy

governor of dept ofpayments & settlement

system

3 other members- directors

of RBI

Assisted by Dept of

payments & settlementsystem

5 members appointed by

central government for 4

yearsOne each for the four

regions of the country in

Mumbai, Calcutta, Chennai

and New Delhi

Appointed by the Government of India for 4 years

Official Directors1 Governor

maximum 4 Deputy Governors

Non-Official Directors

10 Directors from various fields

1 government Official.

4 Directors each from four local boards

Central BoardConstitution


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Governor & deputy governors

Deputy Governor

Smt. Shyamala Gopinath

Deputy Governor

Dr. Subir Gokarn

Governor

Dr. D. Subbarao

Deputy Governor

Smt. Usha Thorat

Deputy Governor

Dr. K. C. Chakrabarty


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Board for Financial

Supervision

Board for Payment

& Settlement SystemsLocal Boards

Undertake consolidated

supervision of the financial

sector comprising

commercial banks, financial

institutions and non-banking

finance companies.

The policies for regulation

& supervision of payment

system

Standard for existing &

future payment system

Authorization of paymentsystems

Membership criteria

determination

Issuing directions

To advise the central board

on local matters

To represent territorial and

economic interests of local

cooperative and indigenous

banksTo perform such other

functions as delegated by

central board.

General superintendence and direction of the bank's affairs

Central Board

Functions


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IRDA To protect the interest ofand secure fair treatment to policyholders

To bring about speedy and orderly growth of the insurance industry

To set, promote, monitor and enforce high standards of integrity, financial

soundness, fair dealing and competence of those it regulates;

To ensure speedy settlement of genuine claims, to prevent insurance frauds and

other malpractices and put in place effective grievance redressal machinery

To promote fairness, transparency and orderly conduct in financial markets

dealing with insurance

To take action where such standards are inadequate or ineffectively enforced

To bring self-regulation in day-to-day working of the industry


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AMFI

Incorporated on august 22, 1995 as a non profit organisation.

Apex body of all 39 registered asset management companies registered with SEBI

Dedicated to developing the Indian mutual fund industry on professional,

healthy and ethical lines.

To enhance and maintain standards in all areas

to protect and promote the interests of mutual funds and their unit holders.


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objectives

To define and maintain high professional and ethical standards

To recommend and promote best business practices and code of conduct to be

followed by members and others.

To interact with the SEBI and to represent to SEBI on all matters concerning the

mutual fund industry.

To represent to the Government, RBI and other bodies on all matters relating to

the Mutual Fund Industry.

To develop a cadre of well trained Agent distributors and to implement a

program of training and certification for all intermediaries and other engaged in

the industry.

To undertake nation wide investor awareness program

To disseminate information on Mutual Fund Industry and to undertake studies

and research directly and/or in association with other bodies.


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RAIN

The basic aim was that RAIN should be the representative body of

Securities' Registrars Share Transfer Agents in India

RAIN, with the active participation of its members, contributed immenselyto the smooth and successful switchover to paperless trading and electronic

shareholding.

play a vital role in the areas of IPOs, corporate actions, investor servicing

and compliance facilitation.

RAIN provides the one-point interface for its members with the regulator-SEBI,NSDL, CDSL, NSE, BSE


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The tasks ahead for RAIN

Issuing Standard Operating Procedures in the Indian context

Training & certification for industry personnel

Identifying services for the international community

Redefining infrastructure especially the IT infrastructure


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Microfinance Institutions Network

An international association of leading microfinance institutions.

Through the MFIN, 31 members ( NBFC- MFIs) share ideas, experiences, and

innovative solutions to the challenges they face in search of continuous growth and

progress.

MFIN members have invested in Alpha Micro Finance Consultants P Ltd (Alpha),which in turn has invested Rs. 2 Crore in setting up a credit bureau which will help

improve credit risk management within the sector and ensure multiple borrowing

and over indebtedness is checked

Documents

Regulatory Bodies (1)