Companies & Sectors
Germany's Ergo forges JV with Avantha for life insurance foray

“The new company will offer life insurance products to private customers. With this strategic move, Ergo continues to pursue its international growth strategy,” the German firm Ergo said in a release"

 
New Delhi: Germany’s Ergo Insurance Group has inked a 26:74 joint venture pact with Avantha Group to foray into India's life insurance space, five years after it had entered into the non-life space in association with HDFC, reports PTI.
 
“The new company will offer life insurance products to private customers. With this strategic move, Ergo continues to pursue its international growth strategy,” the German firm said in a release.
 
India allows foreign firms to have a maximum 26% stake in life insurance joint ventures. Ergo would increase its share once the regulatory framework allows to do so. 24 life insurers are currently operating in the country, as per Insurance Regulatory and Development Authority (IRDA) website.
 
“The life insurance joint venture will primarily offer unit-linked and traditional life insurance products to private customers in India. Ergo contributes its technical and risk management expertise and international know-how in setting-up life insurance operations,” the statement said.
 
The venture, Avantha Ergo Life Insurance Company, would have its head office in Mumbai and plans to start operations from 2014, subject to regulatory approvals.
 
“India currently represents more than 17% of the world's population, but only two per cent of the total life insurance premiums. This is one reason why we believe the Indian life insurance market will expand and that it is highly attractive for new private players,” Jochen Messemer, chairman of the Board of ERGO International AG, said.
 
“The long-term growth projections for the economy as well as the insurance market are strong and positive, particularly after some regulatory adjustments in 2010-2011 in the Indian life insurance market,” the statement said.
 
Ergo had forayed into the non-life insurance space in India in 2007 in association with HDFC. The venture offers non-life and health insurance products and is one of the top four private non-life insurers in India.
 
Founded in 1919, the diversified Avantha Group has presence in areas like paper processing, power transmission and distribution equipment as well as chemicals and information technology.
 
It employs around 20,000 people and clocks revenues of equalling 3.1 billion euros.
 

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SEBI eases norms for changing investor name in accounts

Easing the procedures, SEBI said in case there is change of name after marriage, the individual investor can submit either a copy of marriage certificate or passport showing husband’s name or document showing the publication of name change in official gazette

New Delhi: Market regulator Securities and Exchange Board of India (SEBI) relaxed the procedures to be followed by investors while changing names in individual accounts, reports PTI.

 

Easing the procedures, SEBI said in case there is change of name after marriage, the individual investor can submit either a copy of marriage certificate or passport showing husband’s name or document showing the publication of name change in official gazette.

 

In instances name getting changed for reasons other than marriage, proof showing the publication of name change in official gazette has to be submitted by the investor.

 

The same would apply for cases related to change in father’s name.

 

SEBI said the move would help in simplifying the “procedure of change of name in individual Beneficial Owner’s (BO) account”.

 

In its circular today, SEBI has directed depositories to implement these provisions within three months.

 

Further, depositories should have the system to keep audit trail of the name change in the BO account similar to that of address change or any other change of coordinates.

 

SEBI has also asked depositories to make amendments to the relevant “Bye-Laws, Business Rules and DP Operating instructions for the implementation of the above decision, as may be applicable or necessary.”

 

According to the regulator, the circular is being issued in the interests of investors in securities and to promote the development of securities market.

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SEBI imposes Rs10 lakh penalty on a brokerage firm

SEBI said that the stock broker has failed to show high standards of integrity, promptitude and fairness as well as failed to act with due skill, care and diligence in the conduct of the business

 
Mumbai: Market regulator SEBI imposed a penalty of Rs 10 lakh on a brokerage firm Jitendra Harjivandas Securities for allegedly facilitating fraudulent trading practices in shares of Betala Global Securities (BGSL), reports PTI.
 
Securities and Exchange Board of India (SEBI) said the stock broker indulged in circular/reversal synchronised trades with other brokers and clients in the shares of Betala Global Securities.
 
“...impose a total penalty of Rs 10 lakh on the noticee (Jitendra Harjivandas Securities)...the penalty is commensurate with the default committed by the noticee,” SEBI said in its order.
 
In a probe conducted by SEBI, the regulator found a spurt in the share price of BGSL during 2 May to 21 November 2003. The regulator said that the company's scrip price jumped by 254% and a total of 1.54 crore shares were traded.
 
SEBI said a group of clients connected to each other i.e., Mahesh Mistry traded in the shares of the BGSL through various trading members and mostly through Jitendra Harjivandas Securities.
 
“...the noticee as a stock broker have indulged in manipulative and fraudulent transactions and created a false market of shares of the company by acting in concert with the entities of Mahesh Mistry Group,” the regulator said.
 
It further said the stock broker has failed to show high standards of integrity, promptitude and fairness as well as failed to act with due skill, care and diligence in the conduct of the business.
 

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