Earlier banks used to
act as an agent for the insurance companies, but now The Insurance Regulatory and Development Authority (IRDA) has
allowed banks to act as insurance brokers, subject to RBI approval.
National Spot Exchange Ltd (NSEL), some stock brokers and
portfolio managers have come under regulatory scanner for inducing HNIs and
other investors to trade on spot market commodity exchange with promise of high
returns. There is an estimation of Rs 6,000-crore payment crisis.
·
Providing stability to the sinking rupee
·
Give impetus to growth
·
Repair RBI-FinMin ties
·
Call on new banking licences (stress in
banking sector)
·
Keep dollars flowing in
New
banks licences to take some more time: RBI
The Reserve Bank of India has ruled out the relaxations in norms
for grant in new bank license. The banking regulator has started scrutinizing
the applications. However the exercise will take some more time.
EXPERT VIEW
By : Shankar Acharya, an honorary professor at
Icrier and former chief economic adviser to the government of India.
DID YOU KNOW
10
THINGS ABOUT COMPANIES BILL
·
A Private Company can have a maximum of
200 members.
·
All companies must follow a uniform
financial year i.e. from April to March.
·
Spend of CSR made compulsory. The
new law requires companies to spend at least two per cent of their average
profits in the last three years towards Corporate Social Responsibility (CSR)
activities. But only companies reporting Rs 5 crore or more profits in the
last three years have to make the CSR spend. The
Bill allows companies the freedom to choose areas of work for CSR.
·
Individual auditors are to be
compulsorily rotated every 5 years and audit firm every 10 years in listed
companies.
·
At least one woman director to be
appointed.
·
A company cannot make investment through
more than 2 layers of investment companies.
·
Prohibits Insider Trading and provides
for class action suit, which is key weapon for individual shareholders to take
collective action against errant companies.
·
At least one-third of the total number
of directors of a listed public company should be independent directors.
·
Existing companies to get a transition
period of one year to comply.
·
The Bill also has provisions for
re-opening or re-casting of the books of accounts of a company.
WHAT
COMPANIES ACT WILL DO FOR YOU:
A SNEAK PEAK INTO THE WORLD OF FINANCE
Raghuram Rajan to
replace Duvvuri Subbarao as the next RBI governor. Click on the slideshow for
five must know facts about him.
TERM OF THE WEEK
One Person Company
- One Person Company is one of the
type of Company on the basis of number of members with only one person as its
shareholder.
- The legal and financial liability is limited
to the company only and not to the person.
- OPC shall be treated as a private company with
minimum paid-up share capital of one lakh rupees (Rs.
1,00,000/-).
- Should have minimum one director but the
number should not cross 15.
- The words "One Person
Company" should be mentioned in brackets below the name of the One
Person Company.
- In case of the death of
member/shareholder or his incapacity to contract, then nominee/other
person become the member of the Company.
- One Person Company need not to
hold any AGM (Annual General Meeting) in each year.
