affairs of banking companies in India. RBI has powers to supervise and control commercial and co-operative banks with a view to developing an adequate and a sound banking system in the country. The RBI has powers to issue licenses to new banks and branches, prescribe minimum requirements regarding paid up capital and reserves, maintenance of cash and other reserves and inspect the working of banks in India and abroad. Monetary stability Financial stability Payment system Credit allocation Degree of price stability Note issuing authority Government bank Bankers bank Supervising authority Exchange control authority Promotional functions Regulator of money and credit authority SEBI has been vested with following powers:
To control and regulate stock exchanges.
To call any information or explanation from a recognized stock exchanges or their members.
To grant approval to bye-laws of recognized stock exchanges.
According to section 11 of the SEBI act specifies the functions as follows:
There are two types of functions performed by SEBI and they are:
Regulatory functions. Developmental functions.
Regulation of stock exchange and self regulatory organizations.
Registration and regulation of stock brokers, sub -brokers, merchant bankers underwrites and such others intermediary who is with securities market.
Prohibition of fraudulent and unfair trade practices relating to securities market.
Promoting investors education.
Training of intermediaries.
Promoting self regulatory organizations.
Promoting of fair practices and code of conduct for self regulatory organizations.
Insurance Regulatory and Development Authority(IRDA) established under IRDA Act,1999.It is provided for the establishment of IRDA to protect the interest of policy holder, to regulate, promote and ensure orderly growth of the insurance industry. It is situated at Hydrabad (Head office).
1. To regulate, promote and ensure orderly growth of the insurance business and reinsurance business. 2. To renew the registration 3. To direct modification 4. To call for information 5. To order for revaluation 6. To protect the interest of the policyholder
7. To appoint one or more Additional Directors 8. To settle the disputes 9. To regulate investment of funds by Insurance companies & Maintenance of margin for solvency. 10. To specify the percentage of business to be underwritten by the insurer in the rural or social sector.
1. Licensing or Registration 2. Product & its pricing 3. Investment of funds 4. Solvency Margin 5. Appointment of Actuary 6. Accounts & Balance sheet 7. Surveyors & loss Assessor 8. Intermediaries 9. Investigation 10. Reinsurance
The Comptroller & Auditor General(C&AG) of India plays a very important role in the Government Audit. The C&AG Act passed by Parliament in 1971 and amended in 1976 lays down the duties and rights of the C&AG. C&AG is appointed by President of India. He can be removed only when each house of Parliament decides to do so by a majority of not less than 2/3rd of member of the House present & voting.
Compilation and submission of Accounts. Rendering Assistance in Accounts Maintenance. Auditing and Reporting . Auditing Receipts and Expenditure.
Auditing Grants and Loans. Auditing Receipt of the Union or State. Auditing Stores and Stock Accounts. Auditing Government Companies and Corporation Accounts.
The C&AG has the power to direct the manner in which the accounts of a company shall be audited by the auditor and to give such an auditor the instruction in regards to any matter pertaining to the performance of his function as such. He is empowered to conduct a supplementary or test audit of the accounts of a company . According to companies act, 1956 u/s 619 (4), the statutory auditory is also required to submit a copy of his audit report prepared u/s 227 of the companies act, 1956 to the C&AG. Accordingly, the C&AG have issued directions to the auditors in detail.
Ministry of Corporate Affairs(MCA) , earlier known as Department of Corporate Affairs (DCA) under Ministry of Finance, is primarily concerned with the administration of the Companies Act, 1956, and other allied Acts, framed there-under for regulating the functioning of the corporate sector in accordance with the law. To provide simplified laws governing Corporate Sector to facilitate effective compliance and regulatory regime. Delivery of all registry related services with speed, certainty and transparency, access to public information and effective monitoring of statutory compliance by the companies. To encourage corporate sector to adopt good corporate governance practices and corporate social responsibility.
To promote investor education and awareness for creation of appropriate business environment that facilitate growth of corporate sector in the country To develop capacity building and secure policy advisory support through IICA Administration of Companies Act and other Acts under purview of Ministry. To promote competition and curb anti- competition practices. Administration of the Companies Act, 1956 and other related Acts. Formulation of Rules and regulations under various Acts administered by the Ministry. Convergence of Indian Accounting Standards with IFRS. Implementation of Competition Act through the Competition Commission of India. e-Governance in MCA Build systems for early detection of irregularities in corporate functioning. Undertaking investor education and awareness programmes. To undertake investigation of serious frauds through the Serious Fraud Investigation Office. Cadre administration of the Indian Corporate Law Service.