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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