State and Federal governments have number of agencies in place that control and supervise financial companies and markets. These agencies particularly have the explicit range of responsibilities and duties that allow them to behave separately of each other where they work to obtain same objectives. Even though advices differ on the competence, efficacy and the requirement for few of the agencies, they were individually planned with the precise goals and would be probable to be get around for less time. Considering in mind, the subsequent article is the detailed review of every regulatory body.
Financial sector regulators in India: Financial system in India is controlled with the help of self-governing controllers, related with the insurance, capital market, commodity market, banking and the pension funds. The government of India is also recognized for playing a substantial role in regulating the field of security of finance and motivating the roles of financial regulators mentioned below:
Forward Markets Commission:
It is the chief supervisor of the commodity (UCX, MCX, NMCE etc) of the Indian future market
It’s headquarter is situated in Mumbai
Working in association with the Minister of Finance.
The main objective of this body is to give an opinion to the Central government on matters of the Forwards Contract Act, 1952.
Reserve Bank of India (RBI):
Apex monetary institution of India is Reserve Bank of India and it is also known as Central Bank of India.
In April 1, 1935 Reserve Bank of India was established in agreement with the requirements of the Reserve Bank of India Act, in 1934.
In Calcutta, Central Office of Reserve Bank was primarily developed whereas in 1937, it was shifted to Mumbai permanently.
Although, officially owned, from nationalization in 1949, Reserve Bank of India is totally purchased by Indian Government.
Reserve Bank of India is the financial controller of the institution of finance such as private sector banks, public sector banks, co-operative banks, RRBs and all kind of non-banking financial companies.
RBI’s main function is to regulate price fluctuations of country seeing several developments taking place.
Securities and Exchange Board of India (SEBI):
SEBI makes the important part in the financial body of India.
This is the controller integrated with the market of security in Indian Territory.
SEBI was started in 1988, but SEBI Act came into consideration in year 1992.
IRDAI (Insurance Regulatory and Development Authority of India):
National agency of Government of India is The Insurance Regulatory and Development Authority (IRDA).
It was created by an Act of Indian Parliament labeled as IRDA Act 1999 that was started in 2002 to integrate some developing necessities.
IRDAI headquarter is situated in Hyderabad.
IRDAI consists of the Indian Parliamentary Act and was approved by Government of India.
Insurance Regulatory and Development Authority of India is the controller of all public sector and private sector insurance business in India.
IRDA approves the guidelines for several insurance companies.
It controls the working of insurance companies to govern them to operate in the public interest.
Pension Fund Regulatory and Development Authority (PFRDA):
Pension Fund Regulatory is the authority related to pension that was started in year 2003 by Government of India.
Pension Fund Regulatory is sanctioned by the Ministry of Finance that assists in encouraging the safety of income of geriatric population by developing and regulating the pension funds.
This group may also assist in safeguarding the subscriber’s interest rate, related with the plan of pension money with related matters.
PFRDA is accountable for the selection of various intermediate agencies such as Pension Fund managers.