Key Takeaways:
Need for Legislation
Establishment and Functions of Authority
Accounts and Finance Functions
Powers of Authority and Central Government
Overview of Regulators in Other Countries
Key Takeaways:
FEMA regulations relating to IFSC
Scheme for setting up of IFSC Banking Units (IBUs)
Permissible activities of IBUs
Rupee Derivatives at IFSCs
The document outlines the Reserve Bank of India's revised regulatory framework for non-banking financial companies (NBFCs) called Scale Based Regulation (SBR). Under SBR, NBFCs will be categorized into four layers - base, middle, upper, and top - based on parameters like size and interconnectedness. Regulation will increase progressively across the layers, with the base layer facing the least regulation and the top layer the most stringent. Key aspects of the new framework include increased net owned funds requirements, tighter prudential norms, expanded disclosures, and governance guidelines for middle and upper layer NBFCs. A scoring methodology is also defined to identify NBFCs that will fall in the upper layer.
Objectives & Agenda :
External Commercial Borrowings (ECB) are commercial loans raised by eligible resident entities from recognised non-resident entities. The objective of this Webinar is to understand the regulations laid down for the purposes of ECBs. We shall discuss the parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, and other such conditions relating to ECBs. We shall also look at relevant Statistics.
The document provides an overview of public issue of debentures by companies in India. It defines debentures and various types of debentures. It discusses the process of public issue of debentures which requires issue of a prospectus, appointment of a debenture trustee, creation of debenture redemption reserve, and compliance with various other statutory requirements. It also describes different types of prospectus that can be issued for public offer of debentures and exceptions available for certain companies.
This document summarizes key provisions around deductions allowed under business and professional income in the Income Tax Act. It discusses sections related to deductible expenses like depreciation, preliminary expenses, scientific research, etc. It also covers inadmissible expenses and special provisions for certain industries. Specific deductions are outlined for tea/coffee development funds, site restoration funds, voluntary retirement schemes, and insurance premiums. The document categorizes the various deduction sections and provides explanations of select concepts like block of assets and mandatory claiming of depreciation.
It provides a comprehensive analysis of the SEBI Invetsor Protection Guideline 2000 from the point of view of the companies. It covers offer documents, exceptions, price discovery, green shoe option, e-IPO, etc.
This document discusses various types of income that are taxable under the head "Income from Other Sources" according to the Indian Income Tax Act:
1. Any sum of money over Rs. 50,000 received without consideration by an individual or HUF is taxable, except money received from relatives, on marriage, under a will, for death, or from specified institutions.
2. Gifts of immovable property, shares, jewelry, art, etc. valued over Rs. 50,000 without consideration are taxable at fair market value.
3. Closely held companies receiving share consideration over the face value are taxed on the excess amount.
4. Winnings from lotteries,
SHARES - MEANING , DEFINITION , CHARACTERISTICS AND ITS TYPES.KhushiGoyal20
This document defines shares and discusses their key characteristics and types. Shares represent a portion of a company's total share capital and are divided into parts. Each part is called a share. There are two main types of shares: equity shares and preference shares. Equity shares constitute the major portion of a company's shares and holders have voting rights and rights to profits. Preference shares have preferential rights to dividends and repayment of capital over equity shares. Preference shares can be further classified as cumulative, non-cumulative, convertible, redeemable and participating.
Key Takeaways:
FEMA regulations relating to IFSC
Scheme for setting up of IFSC Banking Units (IBUs)
Permissible activities of IBUs
Rupee Derivatives at IFSCs
The document outlines the Reserve Bank of India's revised regulatory framework for non-banking financial companies (NBFCs) called Scale Based Regulation (SBR). Under SBR, NBFCs will be categorized into four layers - base, middle, upper, and top - based on parameters like size and interconnectedness. Regulation will increase progressively across the layers, with the base layer facing the least regulation and the top layer the most stringent. Key aspects of the new framework include increased net owned funds requirements, tighter prudential norms, expanded disclosures, and governance guidelines for middle and upper layer NBFCs. A scoring methodology is also defined to identify NBFCs that will fall in the upper layer.
Objectives & Agenda :
External Commercial Borrowings (ECB) are commercial loans raised by eligible resident entities from recognised non-resident entities. The objective of this Webinar is to understand the regulations laid down for the purposes of ECBs. We shall discuss the parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, and other such conditions relating to ECBs. We shall also look at relevant Statistics.
The document provides an overview of public issue of debentures by companies in India. It defines debentures and various types of debentures. It discusses the process of public issue of debentures which requires issue of a prospectus, appointment of a debenture trustee, creation of debenture redemption reserve, and compliance with various other statutory requirements. It also describes different types of prospectus that can be issued for public offer of debentures and exceptions available for certain companies.
This document summarizes key provisions around deductions allowed under business and professional income in the Income Tax Act. It discusses sections related to deductible expenses like depreciation, preliminary expenses, scientific research, etc. It also covers inadmissible expenses and special provisions for certain industries. Specific deductions are outlined for tea/coffee development funds, site restoration funds, voluntary retirement schemes, and insurance premiums. The document categorizes the various deduction sections and provides explanations of select concepts like block of assets and mandatory claiming of depreciation.
It provides a comprehensive analysis of the SEBI Invetsor Protection Guideline 2000 from the point of view of the companies. It covers offer documents, exceptions, price discovery, green shoe option, e-IPO, etc.
This document discusses various types of income that are taxable under the head "Income from Other Sources" according to the Indian Income Tax Act:
1. Any sum of money over Rs. 50,000 received without consideration by an individual or HUF is taxable, except money received from relatives, on marriage, under a will, for death, or from specified institutions.
2. Gifts of immovable property, shares, jewelry, art, etc. valued over Rs. 50,000 without consideration are taxable at fair market value.
3. Closely held companies receiving share consideration over the face value are taxed on the excess amount.
4. Winnings from lotteries,
SHARES - MEANING , DEFINITION , CHARACTERISTICS AND ITS TYPES.KhushiGoyal20
This document defines shares and discusses their key characteristics and types. Shares represent a portion of a company's total share capital and are divided into parts. Each part is called a share. There are two main types of shares: equity shares and preference shares. Equity shares constitute the major portion of a company's shares and holders have voting rights and rights to profits. Preference shares have preferential rights to dividends and repayment of capital over equity shares. Preference shares can be further classified as cumulative, non-cumulative, convertible, redeemable and participating.
This document discusses residential status under Indian income tax law. It explains that an individual's tax liability depends on their residential status, which can be resident, non-resident, or ordinarily resident. It also discusses how residential status is determined for individuals, HUFs, firms, companies and other persons. Key factors include number of days present in India and control and management of affairs. The document provides examples to illustrate how residential status is assessed and its implications for taxing different types of income received in or outside of India.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
Income Tax Act 1961
Capital Gain, Basis of Charge, Capital Asset U/s 2(14) Income Tax Act, Transactions that do not constitute TRANSFER U/s 47, Types of Capital Assets, Computation of STCG, Computation of LTCG, Tax Exemption for Capital Gain.
This document provides a summary of Non-Banking Financial Companies (NBFCs) in India. It defines what an NBFC is, outlines the key types of NBFCs such as asset finance companies, loan companies, investment companies, and microfinance institutions. It also describes important NBFC concepts like capital adequacy requirements, classification of assets, and the regulations applicable to different categories of NBFCs. The document is intended to serve as a quick guide to NBFCs in India.
The document discusses income from other sources under section 39 of the Income Tax Ordinance. It defines income from other sources as income that is not covered under other heads like salary, property, business, or capital gains. It provides examples of types of income covered under this head, including dividends, royalties, profit on debt, and others. It also discusses relevant provisions, deductions allowed, exemptions, unexplained incomes, and case laws related to income from other sources.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July 2017 which was one of the most important reforms in the Indian Economy. There are various provisions for exemptions under the GST Law. In this Part II of the webinar, we shall analyse and understand such provisions.
The document summarizes key changes brought about by India's new Overseas Direct Investment Guidelines. It introduces definitions for key terms like foreign entity, overseas direct investment, and overseas portfolio investment. It liberalizes regulations by removing restrictions on investment write-offs and allowing more entities like unlisted companies and individuals to undertake overseas investments. The guidelines also expand the scope of permitted overseas investments in sectors like financial services. Overall, the changes aim to simplify regulations and promote ease of doing business for overseas investments by Indian persons and entities.
The document provides an overview of key banking laws and regulations in India, including the Banking Regulation Act of 1949. It discusses the history and objectives of the Act, as well as some important amendments over time. The Act aims to safeguard depositors and control bank personnel while promoting the interests of the Indian economy. It establishes requirements for banks regarding minimum capital, licensing, branch operations, reserves, and more. The Act applies to nationalized, non-nationalized, and cooperative banks operating in India.
India's new Overseas Investment Regulatory Architecture.pdfSS Industries
The document provides an overview of India's new overseas investment regulatory architecture. It outlines the key changes made in the new framework, including consolidating various regulations into three main regulations, distinguishing between debt and non-debt instruments, increasing investment limits for overseas direct investment and overseas portfolio investment, and relaxing restrictions on certain outbound investment structures. The document also provides snapshots of historical trends in India's overseas investments, top destinations for such investments, and sectors attracting the highest outflows. It summarizes various aspects of the new framework such as eligible investment types, limits, and conditions for overseas investments by Indian entities and resident individuals.
Clubbing of income provisions allow the income of certain taxpayers to be included in the taxable income of another person under specific circumstances outlined in sections 60-64 of the Income Tax Act. This includes income transferred without asset transfer, income from revocable transfers of assets, income of a spouse from a business in which the other spouse has substantial interest without qualifications, income from assets transferred to a spouse or son's wife without adequate consideration, and income of a minor child. The purpose is to prevent tax avoidance by attributing income to the person who effectively controls or benefits from the income.
Income Of Other Persons, Included In Assesses Total IncomeAdmin SBS
Who is an assessee?
Extract of sec 2(7)(a)
Assessee means a person by whom any tax or any other sum of money is payable under this Act, and includes
every person in respect of whom any proceeding under this Act has been taken for the assessment of HIS income or
of the Income of any other person in respect of which he is assessable
or of the loss sustained by him or by such other person
or of the amount of refund due to him or to such other person
Capital gains are profits arising from the transfer of a capital asset. There are two types of capital assets - short term (held for less than 3 years for non-financial assets and 1 year for financial assets) and long term (held for more than 3 years/1 year). Capital gains are taxed differently based on whether the asset is short term or long term. Indexation of cost is allowed for long term capital gains to account for inflation. Various sections like 54, 54B, 54D, 54EC, 54F provide exemptions from capital gains tax if certain conditions are met like reinvestment of sale proceeds.
This document outlines the different heads of income under which a person's taxable income is classified and assessed in India. The key heads of income are: salary, house property, profits from business/profession, capital gains, and other sources. It provides details on what constitutes income from each of these heads, such as the types of allowances and deductions included in salary income or the conditions for business/profession income to be taxed.
This document provides details about two key cases involving SEBI regulations - Sahara India and DLF Limited.
In the Sahara India case, SEBI found that Sahara raised around Rs. 19,000 crores through issuance of optionally fully convertible debentures to over 2 crore investors without complying with public issue norms. SEBI concluded this was actually a public issue requiring various disclosures and investor protections under ICDR regulations. The Supreme Court agreed, finding Sahara violated securities laws.
In the DLF Limited case, a complaint was filed with SEBI alleging the company defrauded an investor through land deals involving subsidiaries. SEBI's investigation found DLF transferred shares in companies holding
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
Objectives & Agenda :
To know when an appeal can be made before a Commissioner, High Court and Supreme Court. To gain knowledge regarding the pre-requisites for filing an appeal. To understand the provisions relating to the fines, penalties and the time limit in an appeal. To gain insight regarding the procedure followed during an appeal.
This document outlines income tax rates for various types of individuals and entities in India. It provides income tax slabs and rates for:
1) Resident individual/HUF/AOP/BOI between the ages of 60-79 years and 80+ years. Tax rates range from nil for income up to Rs. 30,000-50,000 to 30% for income over Rs. 10,00,000.
2) Firms, LLPs, and local authorities which are all taxed at a flat rate of 30% on total income.
3) Domestic and foreign companies which are taxed at 30% and 40% respectively.
It also defines key tax terms
BBF 322 REGULATORY FRAME WORK OF FINANCIAL (1).pptxmichealmawadri
The document discusses regulations around shareholding and capital requirements for financial institutions in Uganda. It states that no individual or group can own more than 49% of a financial institution's shares. Minimum capital requirements are also specified, such as commercial banks needing a minimum paid-up cash capital of UGX 10 billion, to be increased to UGX 25 billion by 2013. Non-bank financial institutions must have a minimum capital of UGX 500 million. These regulations aim to promote stability in the financial system.
This document discusses residential status under Indian income tax law. It explains that an individual's tax liability depends on their residential status, which can be resident, non-resident, or ordinarily resident. It also discusses how residential status is determined for individuals, HUFs, firms, companies and other persons. Key factors include number of days present in India and control and management of affairs. The document provides examples to illustrate how residential status is assessed and its implications for taxing different types of income received in or outside of India.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
Income Tax Act 1961
Capital Gain, Basis of Charge, Capital Asset U/s 2(14) Income Tax Act, Transactions that do not constitute TRANSFER U/s 47, Types of Capital Assets, Computation of STCG, Computation of LTCG, Tax Exemption for Capital Gain.
This document provides a summary of Non-Banking Financial Companies (NBFCs) in India. It defines what an NBFC is, outlines the key types of NBFCs such as asset finance companies, loan companies, investment companies, and microfinance institutions. It also describes important NBFC concepts like capital adequacy requirements, classification of assets, and the regulations applicable to different categories of NBFCs. The document is intended to serve as a quick guide to NBFCs in India.
The document discusses income from other sources under section 39 of the Income Tax Ordinance. It defines income from other sources as income that is not covered under other heads like salary, property, business, or capital gains. It provides examples of types of income covered under this head, including dividends, royalties, profit on debt, and others. It also discusses relevant provisions, deductions allowed, exemptions, unexplained incomes, and case laws related to income from other sources.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July 2017 which was one of the most important reforms in the Indian Economy. There are various provisions for exemptions under the GST Law. In this Part II of the webinar, we shall analyse and understand such provisions.
The document summarizes key changes brought about by India's new Overseas Direct Investment Guidelines. It introduces definitions for key terms like foreign entity, overseas direct investment, and overseas portfolio investment. It liberalizes regulations by removing restrictions on investment write-offs and allowing more entities like unlisted companies and individuals to undertake overseas investments. The guidelines also expand the scope of permitted overseas investments in sectors like financial services. Overall, the changes aim to simplify regulations and promote ease of doing business for overseas investments by Indian persons and entities.
The document provides an overview of key banking laws and regulations in India, including the Banking Regulation Act of 1949. It discusses the history and objectives of the Act, as well as some important amendments over time. The Act aims to safeguard depositors and control bank personnel while promoting the interests of the Indian economy. It establishes requirements for banks regarding minimum capital, licensing, branch operations, reserves, and more. The Act applies to nationalized, non-nationalized, and cooperative banks operating in India.
India's new Overseas Investment Regulatory Architecture.pdfSS Industries
The document provides an overview of India's new overseas investment regulatory architecture. It outlines the key changes made in the new framework, including consolidating various regulations into three main regulations, distinguishing between debt and non-debt instruments, increasing investment limits for overseas direct investment and overseas portfolio investment, and relaxing restrictions on certain outbound investment structures. The document also provides snapshots of historical trends in India's overseas investments, top destinations for such investments, and sectors attracting the highest outflows. It summarizes various aspects of the new framework such as eligible investment types, limits, and conditions for overseas investments by Indian entities and resident individuals.
Clubbing of income provisions allow the income of certain taxpayers to be included in the taxable income of another person under specific circumstances outlined in sections 60-64 of the Income Tax Act. This includes income transferred without asset transfer, income from revocable transfers of assets, income of a spouse from a business in which the other spouse has substantial interest without qualifications, income from assets transferred to a spouse or son's wife without adequate consideration, and income of a minor child. The purpose is to prevent tax avoidance by attributing income to the person who effectively controls or benefits from the income.
Income Of Other Persons, Included In Assesses Total IncomeAdmin SBS
Who is an assessee?
Extract of sec 2(7)(a)
Assessee means a person by whom any tax or any other sum of money is payable under this Act, and includes
every person in respect of whom any proceeding under this Act has been taken for the assessment of HIS income or
of the Income of any other person in respect of which he is assessable
or of the loss sustained by him or by such other person
or of the amount of refund due to him or to such other person
Capital gains are profits arising from the transfer of a capital asset. There are two types of capital assets - short term (held for less than 3 years for non-financial assets and 1 year for financial assets) and long term (held for more than 3 years/1 year). Capital gains are taxed differently based on whether the asset is short term or long term. Indexation of cost is allowed for long term capital gains to account for inflation. Various sections like 54, 54B, 54D, 54EC, 54F provide exemptions from capital gains tax if certain conditions are met like reinvestment of sale proceeds.
This document outlines the different heads of income under which a person's taxable income is classified and assessed in India. The key heads of income are: salary, house property, profits from business/profession, capital gains, and other sources. It provides details on what constitutes income from each of these heads, such as the types of allowances and deductions included in salary income or the conditions for business/profession income to be taxed.
This document provides details about two key cases involving SEBI regulations - Sahara India and DLF Limited.
In the Sahara India case, SEBI found that Sahara raised around Rs. 19,000 crores through issuance of optionally fully convertible debentures to over 2 crore investors without complying with public issue norms. SEBI concluded this was actually a public issue requiring various disclosures and investor protections under ICDR regulations. The Supreme Court agreed, finding Sahara violated securities laws.
In the DLF Limited case, a complaint was filed with SEBI alleging the company defrauded an investor through land deals involving subsidiaries. SEBI's investigation found DLF transferred shares in companies holding
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
Objectives & Agenda :
To know when an appeal can be made before a Commissioner, High Court and Supreme Court. To gain knowledge regarding the pre-requisites for filing an appeal. To understand the provisions relating to the fines, penalties and the time limit in an appeal. To gain insight regarding the procedure followed during an appeal.
This document outlines income tax rates for various types of individuals and entities in India. It provides income tax slabs and rates for:
1) Resident individual/HUF/AOP/BOI between the ages of 60-79 years and 80+ years. Tax rates range from nil for income up to Rs. 30,000-50,000 to 30% for income over Rs. 10,00,000.
2) Firms, LLPs, and local authorities which are all taxed at a flat rate of 30% on total income.
3) Domestic and foreign companies which are taxed at 30% and 40% respectively.
It also defines key tax terms
BBF 322 REGULATORY FRAME WORK OF FINANCIAL (1).pptxmichealmawadri
The document discusses regulations around shareholding and capital requirements for financial institutions in Uganda. It states that no individual or group can own more than 49% of a financial institution's shares. Minimum capital requirements are also specified, such as commercial banks needing a minimum paid-up cash capital of UGX 10 billion, to be increased to UGX 25 billion by 2013. Non-bank financial institutions must have a minimum capital of UGX 500 million. These regulations aim to promote stability in the financial system.
The document discusses the Securities Contracts (Regulation) Act of 1956 and the establishment of the Securities and Exchange Board of India (SEBI) as the regulator of the securities market in India. It outlines SEBI's regulatory and developmental functions, organizational structure, and guidelines issued around various aspects of the primary and secondary markets like stock exchanges, brokers, public issues, foreign institutional investors, bonus issues, debentures, underwriters, and buybacks. The overall aim is to promote orderly and fair development of the securities market while protecting investor interests.
Presentation for BSE delhi road show 30.09.2016 w.r.t opportunities in IFSC ...Ashish Jhagarawat
This presentation gives a detail guidelines about what is IFSC (International Financial service centres) and how it will function and what will be the impact on capital market intermediaries
Understanding the Roles and Responsibilities of RBI and the RBI Act, 1934DVSResearchFoundatio
Key Takeaways:
Scope of RBI Act,1934
Banking functions and powers of RBI
Provisions relating to NBFCs
Regulation of derivative instruments
Monetary Policy and inflation target
Other provisions relating to functioning of banking system
SEBI (LISTING OBLIGATIONS & DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 – HIGH...FCS BHAVIK GALA
This article provides highlights and analysis of the recently notified SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 issued by SEBI.
The document discusses the Foreign Exchange Management Act (FEMA) and its regulations regarding the remittance of assets. FEMA was introduced in 2000 to consolidate and amend laws relating to foreign exchange. It aims to facilitate external trade and payments. The Foreign Exchange Management (Remittance of Assets) Regulations, 2016 place various prohibitions and permissions regarding the remittance of assets held in India. These include prohibiting remittance without permission, and permitting remittance in cases such as inheritance, winding up of offices, and payment of taxes in accordance with Indian law.
This document provides an overview of the regulatory system in the Indian financial mechanism. It discusses the key regulators such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and their roles and functions. The RBI is the central bank and apex monetary authority that formulates monetary policy and regulates banking. SEBI regulates securities markets and protects investor interests. Other organizations discussed include the Financial Stability and Development Council, Monetary Policy Committee, and Financial Sector Legislative Reform Committee.
The document discusses various aspects of acquisition of shares and assets in India. It covers topics like types of shares in a company, methods of issuing shares such as IPO, rights issue etc. It also discusses regulations around stock brokers, trading by NRIs, transfer of shares including takeovers and open offers. For acquisition of assets, it states that the acquirer will not take liabilities of the target unless attached to the asset acquired, and that an Indian subsidiary may need to be established for offshore acquirers. Overall, the document provides an overview of the legal and regulatory framework governing acquisition of shares and assets in India.
Valuation under FEMA focuses on two main rules:
1. All current account transactions are allowed unless prohibited.
2. All capital account transactions are prohibited unless allowed.
FEMA established guidelines for valuation of shares and securities for foreign direct investment. For listed companies, the price cannot be less than that determined by SEBI guidelines. For unlisted companies, valuation must use an internationally accepted methodology certified by authorized persons. Convertible instruments must specify the conversion price upfront, which cannot be lower than the fair value at issuance.
FEMA became an act on June 1st, 2000 and is applicable to all parts of India as well as branches and agencies outside India owned by Indian residents. FEMA aims to facilitate external trade and payments while preventing misuse and conserving foreign exchange resources. It replaced the more restrictive FERA as a civil rather than criminal law, though special provisions allow for imprisonment for holding large amounts of foreign exchange illegally. RBI administers and implements FEMA and its rules and regulations which are laid before parliament. FEMA governs foreign exchange transactions, foreign direct investment in India, overseas direct investment by Indians, and penalties for non-compliance.
Project_Secretarial Audit-Tool for Corporate GovernanceCS Vikas Mehta
The document discusses secretarial audits for companies in India. It provides details on:
- What a secretarial audit is and its objectives of ensuring legal compliance and protecting stakeholder interests.
- The regulatory requirements for secretarial audits for listed companies and large public companies.
- The process of conducting secretarial audits, including examining documents, applicable laws, and reporting requirements.
- Qualification and disqualification criteria for secretarial auditors, who must be practicing company secretaries.
- Consequences for non-compliance with secretarial audit requirements, including penalties for companies and auditors.
- The importance of secretarial audits for boosting corporate compliance and governance standards in India
SEBI was established on April 12, 1992 under the Securities and Exchange Board of India Act, 1992. It regulates the securities markets in India and protects investors. SEBI is headquartered in Mumbai and has regional offices across India. It is governed by a board with a chairman and other members appointed by the Indian government. SEBI's functions include registering and regulating intermediaries, regulating takeovers and insider trading, protecting investors, and promoting securities market development. It has powers to inspect entities, impose penalties, and its decisions can be appealed to the Securities Appellate Tribunal or Supreme Court.
Objectives & Agenda :
Foreign Exchange Management Act, 1999 has the authority to govern the Capital Account Transactions and Provision of Services between Non-Residents and Realisation and Repatriation of Foreign Exchange. FEMA empowers the RBI to prescribe Regulations in order to govern such transactions. In this Webinar, we shall understand the FEMA regulations governing International Financial Services Centre (IFSC) and Offshore Banking Unit (OBU).
Unit-10- Overview of the securities and exchange board of India Act, 1992.pptxAssistantProfessorBB
Dr. Veada is an Assistant Professor with over 12 years of teaching experience. The document provides an overview of the Securities and Exchange Board of India (SEBI) Act of 1992. It discusses the history, objectives, organizational structure, functions, and powers of SEBI. As the regulatory authority for India's securities market, SEBI aims to protect investors, promote market development, and regulate market participants. It has powers to formulate regulations, inspect records, pass rulings, and impose penalties to encourage compliance and deter misconduct.
The document summarizes the statutory basis and key provisions of foreign exchange regulation in India. [1] The Foreign Exchange Regulation Act of 1973 and subsequent Foreign Exchange Management Act of 1999 form the statutory basis for regulating foreign exchange. [2] FEMA aims to consolidate and amend foreign exchange laws to facilitate trade and maintain an orderly foreign exchange market. [3] Key provisions of FEMA include regulating capital account and current account transactions, duties of authorized foreign exchange dealers, penalties for non-compliance, and establishment of authorities to enforce the act.
- The document is the annual report of Vipul Dyechem Limited for 2014-15. It lists the board of directors, auditors, bankers, registered office details and plant locations.
- It provides notice for the annual general meeting to be held on 30th September 2015. The notice includes ordinary business such as adoption of financial statements and declaration of dividend as well as special business regarding re-appointment and revision of remuneration of directors.
- It outlines the e-voting process and cut-off date for determining members eligible to vote. Members can opt for e-voting or voting at the annual general meeting.
This document discusses the corporatization and demutualization of stock exchanges in India. When the Bombay Stock Exchange (BSE) was originally formed, it was organized as an Association of Persons (AOP) or Body of Individuals (BOI), with members handling all activities as owners, directors, employees, and brokers. The Securities and Exchange Board of India (SEBI) now requires all stock exchanges in India to corporatize by becoming companies and demutualize by separating ownership and management from trading. This involves stock exchanges preparing schemes for corporatization and demutualization to submit to SEBI for approval. If approved, the schemes must be published and the recognized stock exchange must meet ongoing
The Securities and Exchange Board of India (SEBI) was established in 1992 as the regulator of the securities market in India. SEBI's objectives include protecting investors, regulating stock exchanges and securities markets, and promoting their development. SEBI has regulatory and developmental functions like registering and regulating intermediaries such as stock brokers, regulating insider trading, and promoting investor education. It oversees stock exchanges, mutual funds, and other market participants and has powers to license, inspect, and enforce compliance with securities laws in India.
SCRAPPING OF RETRO TAX PROVISIONS : A REVIVAL OF OVERSEAS INTEREST IN INDIADVSResearchFoundatio
The document summarizes the scrapping of retroactive tax provisions in India. It provides background on retroactive taxation laws introduced in 2012 in response to court rulings. It analyzes prominent cases like Vodafone and Cairn Energy that challenged the retroactive taxes under bilateral investment treaties. The Taxation Laws Amendment Act of 2021 was passed to scrap these retroactive provisions and provide tax refunds to affected companies like Cairn Energy. The act aims to improve India's reputation as an investment destination and revive interest from foreign investors.
Key Takeaways: - Analysis of section 45(4), section 9B of the Income Tax Act...DVSResearchFoundatio
Key Takeaways:
- Analysis of section 45(4), section 9B of the Income Tax Act and Rule 8AA and Rule 8AB of Income Tax Rules
- Illustrations to understand the relevant impact
- Critical Issues concerned with the provisions
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
FALLACIOUS DISREGARDING OF TRANSACTIONS THAT RESULT IN A TAX BENEFIT TO THE A...DVSResearchFoundatio
Key Takeaways:
- Facts of the case
- AO's contention
- Ruling of CIT(A) and issues for consideration of the ITAT
- Observations of ITAT
- Final Ruling
- Way Forward
ALLOWABILITY OF OUTSTANDING INTEREST CONVERTED INTO DEBENTURES AS AN EXPENSE ...DVSResearchFoundatio
The Supreme Court ruled that the conversion of outstanding interest into debentures by the assessee company qualified for deduction under Section 43B of the Income Tax Act. The conversion was done under a rehabilitation plan agreed with institutional creditors to extinguish the interest liability. The Court observed that Section 43B was not meant to affect bona fide transactions, and debentures were different than loans/borrowings under Explanation 3C. It set aside the High Court's decision and allowed the assessee's claim for deduction, noting the conversion was an actual payment of interest rather than postponing the liability.
Key Takeaways:
- Facts of the case
- Issues and Orders
- Contention of the parties
- Observations of Honourable Supreme Court
- Conclusion and way forward
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3. Legends used in the Presentation
CAG Comptroller and Auditor-General
CIS Credit Information Companies
FEMA Foreign Exchange and Management Act, 1999
IFC International Financial Centre
IFSC International Financial Services Centre
IRDAI Insurance Regulatory and Development Authority of India
MoU Memorandum of Understanding
PFRDA Pension Fund Regulatory and Development Authority
RBI Reserve Bank of India
SEZ Special Economic Zone
SEBI Securities and Exchange Board of India
4. Presentation Schema
Overview
Meaning of Financial
Services as per IFSC
Authority Act
Establishment of
Authority
Powers and Functions of
Authority
Finance, Accounts and
Audit
Powers of Central
Government
Miscellaneous
Provisions
Overview of Regulators
in other Financial
Centres
Way Forward
6. Introduction
Currently the banking, capital markets and insurance sectors in IFSC are regulated by multiple
regulators i.e. RBI, SEBI and IRDAI
The dynamic nature of business in the IFSCs necessitates a high degree of inter-regulatory
co-ordination
Hence a need was felt for having a unified financial regulator for IFSCs in India to provide
world class regulatory environment to financial market participants
Accordingly, the IFSC Authority Act was introduced on December 19th, 2019 after the
assent of the President
The Act shall apply to the IFSCs set up under SEZ Act, 2005
7. Objectives of the IFSC Authority Act, 2019
The main objective of the Act is to bring several regulators together as one unit and serve as a
single-window for regulating various financial activities in the IFSC
The unified regulator would provide world class regulatory environment to financial
market participants from an ease of doing business perspective
The unified Authority would also provide the much needed impetus to further
development of IFSC in India in-sync with the global best practices
This would also generate significant employment in the IFSCs in particular as well as financial
sector in India as a whole
8. Timeline
February 6th,
2019
• Union Cabinet approves the
introduction of IFSC Authority Bill
February
12th, 2019
• IFSC Authority Bill was introduced
in the Rajya Sabha
November
25th, 2019
• The Bill was introduced in the
Lok Sabha
December
11th , 2019
• The Bill was passed in the
Lok Sabha
December
19th, 2019
• The IFSC Authority Act
received the assent of
the President
Note: The Act received the assent of the
President but it shall come into force on
such date notified by the CG (not yet
notified)
9. Role of IFC’s Regulatory Law in an
Economy
The regulatory system is vital to the objectives of ensuring an efficient,
competitive and stable financial system while at the same time
providing protection for domestic consumers of financial products
sold
The IFCs have traditionally emerged around new technologies but it is
important that policy makers should concentrate on the financial laws
which underpins an IFC
A contingency-based view with the financial sector regulators actively
encouraging an IFC’s financial institutions to seek out providers of
funds to new technologies and facilitate the risk-adjusted value of
such flows along with serving macro prudential objectives
Also periodic reviews and reassessments of the regulatory framework
should be conducted in order to avoid excessive regulations on
financial services
10. Meaning of Financial Services under the IFSC
Authority Act
Financial services rendered by an unit set up in an IFSC shall be the following
1 Buying, selling or subscribing to a financial product or agreeing to do so
2 Acceptance of deposits
3 Safeguarding and administering assets consisting of financial products belonging to another person
4 Effecting Insurance contracts
5 Management of assets consisting of financial products belonging to another person
6 Exercising any right associated with a financial product or financial service
7 Establishing or operating an Investment scheme
8 Maintaining or transferring records of ownership of a financial product
9 Underwriting the issuance or subscription of a financial product
10 Providing information about a person’s financial standing or creditworthiness
11 Selling, providing or issuing stored value or payment instruments or providing payment services
12 Making arrangements for carrying on any of the services above
13 Rendering advice or soliciting for the purposes of buying/selling/subscribing to a financial product or
availing any services above or exercising any rights related to the same
14 Any other service as notified by the CG
Note: Every transaction of financial services in an IFSC shall be in such foreign currency as may be specified by
regulations in consultation with the CG
11. Overview of the Act
Establishment of Authority Incorporation of Authority
Composition of Authority
Term of Office and Conditions of service of members
Meetings and Proceedings of the Authority
Powers and Functions of the
Authority
Functions of the Authority
Powers of the Authority
Finance, Accounts and Audit Grants and IFSC Fund
Accounts and Audit
Performance Review Committee
Maintenance of Website, Returns and Reports
Powers of Central Government Power to supersede Authority
Power to modify provisions of other enactments relating to IFSC
Power to make Rules
Additional Powers
Miscellaneous Provisions Power to make Regulations
Additional Provisions
13. Incorporation of Authority
The Authority shall have powers to enter into and execute contracts, acquire, hold and dispose movable
and immovable property, sue and be sued
The Authority shall be a Body Corporate having Perpetual Succession and Common Seal
And decide the place of Head Office of the Authority and approve the Authority to establish its offices at
other places in India or outside India
The CG may by notification establish an IFSC Authority
14. Composition of Authority
The CG may appoint persons having good capacity in dealing with matters related to financial sectors, as
members of the Authority
Two other members
appointed by the CG
on
recommendations
of a Selection
Committee*
Two ex-officio
members from
the Department
of Finance to be
nominated by
the CG
One ex-officio
member each to
be nominated by
the RBI, SEBI,
IRDAI and PFRDA
A Chairperson
Shall be a whole-time member and
have powers of general
superintendence and direction in
respect of all administrative matters Shall be whole-time or part-time members
*The Selection Committee shall be constituted by the Central Government
Note: The Authority may appoint such officers and other employees as it considers necessary for the
effective discharge of its functions and their terms of service shall be specified by the regulations
15. Terms of Office and Conditions of Service
of Members
Term of Office
Chairperson and a Member
Member
• Maximum age to hold office : 65
• Maximum age to be as whole-time
member : 62
Chairperson
• Hold office for a term of 3 years
• Eligible for re-appointment
• May resign from office by giving notice in
writing of not less than 3 months
Conditions of Service
Members other than ex-
officio members
• Salaries and allowances payable and other
terms of service shall be as prescribed
• Shall not accept employment under
CG/SG or any appointment in any financial
institution in IFSC for 2 years from the date
of cessation of holding office
Removal of a member
from Office
CG may remove a
member after giving
reasonable opportunity of
being heard if such
member :
• Is adjudged as insolvent
• Has become physically or mentally
incapable
• Has convicted an offence involving moral
turpitude
• Has acquired prejudicial financial interests
• Has abused his position
16. Meetings and Proceedings of the
Authority
The meetings of the Authority shall be conducted at such places and in
such procedure as specified by regulations
If the Chairperson is unable to attend the meeting, any Member chosen
by the Members present from amongst themselves shall preside at the
meeting
Decisions shall be taken with the majority of votes and in case of
equality the Chairperson (or the person presiding) shall have a casting
vote*
Members should disclose in writing of any interest likely to arise to
him/her on a matter which is to come up for consideration in the
meeting and shall not take part in the decision of the same
Vacancies or defects in the constitution or appointment of members of
the Authority shall not affect any act or proceedings of the Authority
* Casting vote is an extra vote given by a Chairperson to decide an issue when the votes on each side are equal
18. Functions of Authority
• Regulation of financial products*, financial services and financial institutions in an IFSC which
have been permitted by any regulator (RBI, SEBI, IRDAI and PFRDA) before the commencement of
this Act
• Regulation of such other financial products, financial services and financial institutions in the IFSC
as notified by the CG
• Recommendation to the CG of such other financial products, financial services and financial
institutions which may be permitted in an IFSC
*Financial products means
1) Securities
2) Insurance Contracts
3) Deposits
4) Credit arrangements
5) Foreign currency contracts other than contracts to exchange one currency for another that are to be
settled immediately
6) Any other product or instrument as notified by the CG
19. Powers of the Authority
The Authority shall exercise all powers exercisable by the Appropriate Regulators in the IFSC under the
respective Acts as mentioned in the First Schedule of IFSC Authority Act
S.No. Appropriate
Regulator
Powers in the Relevant Acts
1 RBI 1) RBI Act, 1934
2) Banking Regulation Act, 1949
3) Deposit Insurance and Credit Guarantee Corporation Act, 1961
4) FEMA, 1999
5) CIS(Regulations) Act, 2005
6) Government Securities Act, 2006
7) The Payment and Settlement Systems Act, 2007
2 SEBI 1) Securities Contracts (Regulations) Act, 1956
2) SEBI Act, 1992
3) The Depositories Act, 1996
3 IRDAI 1) Insurance Act, 1938
2) General Insurance Business (Nationalisation) Act, 1972
3) IRDAI Act, 1999
4 PFRDA 1) PFRDA Act, 2013
Note: Amendment for any inclusion or omission of regulator and the relevant law can be made to the
above Schedule by the CG by notification after its laid before each House of Parliament
20. Contd…
The provisions of the relevant Acts (mentioned in the Schedule) applicable to financial products,
financial services and financial institutions shall apply under IFSC Authority Act for the same. Such
provisions include the following
Manner of
1) Filing an application for recognition or registration or withdrawal of recognition/registration
2) Furnishing of information or reports
Procedures of
1) Inspection, Investigation or Prosecution of Offences
2) Settlement of Proceedings
3) Compounding or Adjudication of any offence or penalty
4) Filing of appeals
Determination or settlement of
1) Any fee or any fine or penalty or any other sum of amount or punishment
Note:
Penalties, fines, fees and settlement shall be realized in the foreign currency equivalent to INR as
notified by RBI
All such sums realized shall be credited to the Consolidated Fund of India* in Indian rupees
* The Consolidated Fund of India consists credit of all tax and non-tax revenues received by the
Government and loans raised by the Government (internal and external debt)
22. Grants and IFSC Fund
The CG may grant such sums of money as it may think it is necessary to the Authority after due appropriation is
made by the Parliament
IFSC Authority Fund
Amount to be credited to
the Fund
1) All grants, fees and charges received by the Authority
2) All sums received by the Authority from the sources as decided by the CG
Application of the Fund 1) Salaries, Allowances and other Remuneration of members, officers and
employees of the Authority
2) Other expenses incurred for the discharge of functions
Accounts and Audit
Proper Accounts and relevant records are to be maintained and an Annual Statement of Accounts shall be
prepared by the Authority
The accounts of the Authority shall be audited by the CAG of India and expenditure incurred in connection of such
audit shall be payable by the Authority to CAG
The CAG and any person appointed by him shall have all rights as exercisable in the audit of Government accounts
and right to demand production of books, accounts, connected vouchers, other documents and papers and right to
inspect any office of the Authority
The accounts certified by the CAG or such person appointed and the Audit Report shall be forwarded annually to
the CG and the same shall be laid before each Houses of the Parliament
23. Performance Review Committee
The Authority shall constitute a Performance Review Committee consisting of at least 2 members of the
Authority to review the functioning of the Authority on the following matters
1) Adherence to provisions of the applicable laws
2) Regulations made promote transparency and best practices of governance
3) Management of risks in a reasonable manner
The Authority shall forward a copy along with action
taken to the CG within 3 months from the date of
receipt of report
The report shall be submitted to the Authority
The Review shall be done at least once in every F.Y. The Committee shall maintain a system for a person
to submit on the incidence of following matters
Non-adherence of the provisions of any applicable
law
Misappropriation of resources
Abuse of powers
Non-compliance of any decision by any member or
employee of the Authority
The Authority shall provide with the adequate resources and make the necessary regulations to enable the
Committee to discharge its functions
24. Maintenance of Website, Returns and
Reports
A website or any universally accessible repository of electronic information of all regulations and orders
issued shall be maintained by the Authority
• The Authority shall review the quality of the website based on international best practices once every
year and publish the report with the findings along with the Annual Report
The Authority shall furnish to the CG all particulars relating to any proposed or existing programme for
development and regulation of the units in the IFSC as and when required
The Authority shall submit a Report on the account of activities, policies and programmes during the
previous F.Y. within 90 days from the end of F.Y.
A copy of the report shall be placed before each Houses of the Parliament
26. Power to Supersede Authority
The CG may supersede the Authority by notification ( after a reasonable opportunity to make representations is
given) for not more than 6 months on occurrence of the following
• The Authority is unable to discharge its functions due to circumstances beyond its control
• Deterioration of the Financial position or Administration of the Authority on account of persistent default
in discharge of its functions or duties
• Existence of circumstances which render it necessary in the public interest to do so
Effects of publication of notification for supersession
• The Chairperson and Members shall vacate their offices from the date of supersession
• All powers, duties and functions exercisable by the Authority shall be exercised by persons directed by the
CG (till reconstitution of Authority )
• All properties owned or controlled by the Authority shall vest with the CG (till reconstitution of Authority )
The CG shall reconstitute the Authority on expiry of supersession period with fresh appointment of Chairperson
and Members ( those who vacating office are eligible for reappointment)
Note: A copy of the notification issued and the report of actions taken shall be forwarded by the CG to be laid
before each Houses of the Parliament
27. Power to Modify Provisions of Other
Enactments relating to IFSC
The CG may direct that the provisions, rules, regulations, orders, notifications and directions issued under any
other Central Act shall/ shall not apply to financial products, financial services or financial institutions in an IFSC
Mode of Modification
The draft of a copy of every
notification proposed to be
issued is to be laid before
each House of Parliament
while it is in session
It is to be laid while it is in
session for 30 days (in
one/more successive
sessions)
If before expiry of session
both the Houses agree/
disagree with the
notification
The notification shall not be
issued or shall be issued in
the modified form as agreed
upon by both Houses only
28. Power to Make Rules
The CG may make rules for the following matters by notification
Composition and
Constitution of
Selection
Committee
Form of
maintenance of
Accounts,
Records and
Annual
statement of
Accounts
Salaries and
Allowances and
other Terms and
Conditions of
service of
Members
Form of Annual
Report of
activities, policies
and programmes
Functions to be
performed by
Authority
Any other matter
Form and
manner of
furnishing of
returns and
statements
Note: Every Rule made under this Act shall be laid before each Houses of the Parliament in the same
manner for modification of provisions of other enactments relating to IFSC (discussed earlier)
29. Additional Powers
CG may issue directions in writing to the Authority and the Authority
shall be bound by such directions on questions of policy after an
opportunity for expression of views is given
The CG may by an order in the Official Gazette make the necessary
provisions to remove any difficulty encountered in giving effect to the
provisions of the IFSC Authority Act*
* Any such order made shall be laid before each House of Parliament and no such order shall be made after
5 years from the commencement of this Act
31. Power to Make Regulations
The Authority may make regulations for the following matters by notification
Rules and
Procedure for
transaction of
business at
meetings
Maintenance of
website
Salaries and
Allowances of
officers and
other employees
of the Authority
Delegation of
powers and
functions
Manner of
performance of
functions of the
Authority
Foreign Currency
in which
transaction of
financial services
in IFSCs may be
conducted
Manner of
providing
information to
Performance
Review
Committee
Note: Every Regulation made under this Act shall be laid before each Houses of the Parliament in the same
manner for modification of provisions of other enactments relating to IFSC (discussed earlier)
32. Additional Provisions
The Authority may delegate to any Member or Officer or form Committees of Members for delegation of
powers and functions of the Authority by general or special order in writing ( Powers to make regulations
shall not be delegated)
The Members, Officers and Employees of the Authority shall be deemed to be public servants as
per Sec 21 of Indian Penal Code
No suit, prosecution or legal proceeding shall lie against the CG, the Authority or any of its
members, officers or employees for an action done in good faith under this Act
The Authority shall not be liable to any laws or enactments of taxation including Income Tax Act,
1961
The provisions of this Act shall have overriding effect over any other law
34. Singapore
The Monetary Authority of Singapore (MAS) is the Central Bank of Singapore and is an
integrated supervisor overseeing all financial institutions in the country – banks, insurers, capital
market intermediaries, financial advisors and the stock exchange
MAS is responsible for the administration of the Banking Act, Insurance Act and the
Financial Advisers Act which provide for the regulation of financial services and markets in
Singapore
As to the specific financial regulation of different institutions, there are particular departments
inside the MAS supervising the business
35. Overview of Departments of MAS
Banking
Banking Department I supervises local banking groups and certain foreign banks
Banking Department II supervises mix of retail and wholesale banks, finance companies,
money changers and remittance agents
Banking Department III generally supervises banks active in treasury and private banking
businesses
Insurance Insurance Department supervises and regulates insurance companies
Capital Market
Capital Markets Intermediaries Department
Investment Intermediaries Department
Market Conduct Department
Markets Policy and Infrastructure Department
Policy, Risk and
Surveillance
Prudential Policy Department Formulates capital and prudential policies to promote a
dynamic financial sector
Specialist Risk Department Provides risk expertise for the effective prudential
supervision of Singapore’s financial sector
Macroeconomic Surveillance
Department
Conducts surveillance of the financial system to identify
emerging trends and potential vulnerabilities and closely
monitors developments in international financial markets
36. London
After the financial crisis of 2008, a new regulatory framework for the UK’s financial sector came into effect in
April, 2013
Since 2013, The Financial Service Authority (FSA) has become two separate regulatory authorities i.e. the
Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA)
The FCA regulates the financial service industry in the UK and is responsible for promoting effective
competition, ensuring that relevant markets function well and for the conduct regulation of all financial
services firms (FCA is a separate institution and not a part of the Bank of England)
The PRA was created by the Financial Services Act, 2012 and is part of the Bank of England and responsible
for the prudential regulation and supervision of banks , building societies, credit unions, insurers and major
investment firms
37. Hong Kong
Hong Kong’s banking sector comprises 3 tiers of authorized institutions
(AIs) namely Licensed Banks, Restricted License Banks and Deposit-taking
companies
The Hong Kong Monetary Authority (HKMA) ensures general stability and
effective working of the banking system through regulation of banking and
deposit-taking business and the supervision of AIs
The HKMA derives its regulatory powers from the “Banking Ordinance” and
adopts a continuous supervision policy to supervise banks
The Securities and Futures Commission (SFC) is the lead regulator for the
securities industry
To facilitate co-operation on supervising AIs’ securities business, the HKMA
and the SFC have entered into a MoU setting out their roles and
responsibilities
38. Australia
Australia’s regulatory system is an important area of comparative advantage, particularly in the wake of the global
financial crisis
Australia has three key regulators namely the Australian Prudential Regulation Authority (APRA), the Australian
Securities and Investment Commission (ASIC) and the Reserve Bank of Australia (RBA) with the responsibility for
the authorization and supervisions of banks, insurers and other financial institutions
APRA is the national prudential regulator of financial institutions in Australia under the APRA Act, 1998 in
accordance with the laws of the Commonwealth that provide for prudential regulation or retirement income
standards
APRA administers legislation providing for the supervision of authorized deposit-taking institutions, insurance/
reinsurance companies, friendly societies and superannuation funds licensed or registered by APRA
ASIC is the corporate, markets and financial services regulator responsible for promoting market integrity and
consumer protection
The RBA is Australia’s Central Bank and has a long-standing responsibility for the overall stability of the financial
system, monetary policy and payment systems
39. United States
• The structure of the regulatory regime for financial products and services in the United States (US)
is arguably the most complex of any jurisdiction due to a variety of factors including historical
precedent, the federalist nature of the US and national politics
• The federal banking supervisors include the Board of Governors of the Federal Reserve System
(the Federal Reserve), the Office of the Comptroller of the Currency (OCC), the Federal Deposit
Insurance Corporation (FDIC)
• Financial products and services, financial markets and certain participants in those markets are
regulated by the financial markets regulators which include the Securities and Exchange
Commission (SEC) and the Commodity Futures Trading Commission (CFTC)
• The Consumer Financial Protection Bureau (CFPB) was formed in 2010 to focus on consumer
protection with regard to financial products and services.
40. Way Forward
Countries such as Australia whose financial sectors and regulatory systems have emerged from the
crisis in relatively good shape are now at a competitive advantage
The initiative to develop a unified regulatory system for IFSCs in India is great move which will
avoid regulatory overlap
However, the framework should be keen to deploy mechanisms to inspect supervision
loopholes and identify internal communication disorders
The integrated financial regulator will provide a stimulus for further development of IFSCs in India
and enable bringing back of financial services and transactions that are currently carried out in
offshore financial centres outside India