Regulatory bodies

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)

Department of Companies Affairs (DCA)

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

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)

1. 2.

3. 4.

5. 6.

Simplified laws to facilitate effective compliance and regulatory regime. Online 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 Cost audit Effective enforcement of provisions of companies act, 1956.

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.

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 ).

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).

Organizational units
Presently, the work of DEA is organised in the following distinct but complementary Divisions/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).

Capital Market Division Policy issues related to development of the securities markets (i.e. share, debt and derivatives), External Commercial Borrowing (ECB) and administration of Foreign 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.

Forward Market Commission

Chief regulator of forwards 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)

 It consists of 2 to 4 members appointed by the Indian Government. Currently, the Commission allows commodity trading in 22 exchanges in India, of which 3 are national.

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

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 credit system of the country to its advantage.

 It was set up on the recommendations of the HILTON YOUNG COMMISSION It was started as Shareholders Bank with a paid up capital of 5 crs. established on 1st of April 1935 Initially was located in Kolkata. It moved to Mumbai in the year 1937. 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

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

Main functions
Monetary Authority: Formulates, implements and monitors the monetary policy. Objective: maintaining price stability & ensuring adequate flow of credit to productive sectors. Regulator and supervisor of the financial system: 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.

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.

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 all scheduled banks

Subsidiaries

Fully owned National Housing bank (NHB) Deposit Insurance and Credit Guarantee Corporation of India (DICGC) Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)

Major stakes National Bank For Agriculture and Rural Development (NABARD) The reserve Bank of India has recently divested stake in State Bank of India to the government of India .

Constitution Central Board

Appointed by the Government of India for 4 years Official Directors 1 Governor maximum 4 Deputy Governors Non-Official Directors 10 Directors from various fields 1 government Official. 4 Directors each from four local boards Board for Financial Supervision Chairman- RBI s governor Vice-Chairman- Deputy Governor in charge of banking regulation and supervision 4 members - 4 Directors from the Central Board for a term of two years. ex-officio members -The Deputy Governors of RBI Board for Payment & Settlement Systems Chairman- RBI s governor Vice chairman- deputy governor of dept of payments & settlement system 3 other members- directors of RBI Assisted by Dept of payments & settlement system Local Boards 5 members appointed by central government for 4 years One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi

Governor & deputy governors

Governor Dr. D. Subbarao

Deputy Governor Smt. Shyamala Gopinath

Deputy Governor Dr. K. C. Chakrabarty

Deputy Governor Smt. Usha Thorat

Deputy Governor Dr. Subir Gokarn

Functions
Central Board
General superintendence and direction of the bank's affairs Board for Financial Supervision Undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies. Board for Payment & Settlement Systems The policies for regulation & supervision of payment system Standard for existing & future payment system Authorization of payment systems Membership criteria determination Issuing directions

Local Boards To advise the central board on local matters To represent territorial and economic interests of local cooperative and indigenous banks To perform such other functions as delegated by central board.

IRDA
To protect the interest of and 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

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.

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.

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 immensely to 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 regulatorSEBI, NSDL, CDSL, NSE, BSE

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

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