Insurance
IRDAI can direct insurer to get listed
The Indian insurance regulator has the power to direct any general/health/reinsurer to get listed in a stock exchange if the situation warrants, as per the IRDAI (Issuance of Capital by Indian Insurance Companies transacting other than Life Insurance Business) Regulations, 2015.
 
The regulations gazetted on December 15, 2015 were uploaded on Insurance Regulatory and Development Authority of India's (IRDAI) website on Wednesday.
 
According to the regulations, the IRDAI may direct an Indian insurance company transacting general/health/reinsurance business to get listed on the stock exchange(s) if the circumstances so warrant.
 
"Such company shall, notwithstanding the lock-in period, within a period of one year from the date of such directions, comply with the directions issued by the Authority," the regulations stipulate.
 
According to the regulations, no Indian general/health/reinsurer shall approach the Securities and Exchange Board of India (SEBI) for public issue of shares and for any subsequent issue, without the specific previous approval of IRDAI in writing.
 
The regulations allow the insurers governed by it to go public even after getting the Certificate of Incorporation but the promoters/investors have to abide by the lock-in period stipulated by IRDAI.
 
The IRDAI while giving its approval can stipulate the extent to which the promoters/investors shall dilute; the maximum subscription which may be allotted to any class of foreign investor; minimum lock-in period for promoters/investors and other conditions that it may levy.
 
While giving its nod to an insurer to go public, the IRDAI will take into consideration the period for which the company has been in business; its compliance with the regulatory requirements; the maintenance of the prescribed regulatory solvency margin as at the end of the preceding six quarters commencing from the quarter immediately prior to the date of filing the application; compliance with the Corporate Governance Guidelines; compliance with the requirements of "Indian owned and controlled" as defined under the Insurance Act read with the Indian Insurance Companies (Foreign Investment) Rules, 2015; and the insurer's record of policyholder protection.
 
Curiously IRDAI has not stipulated any timeline for granting approvals but said it would issue the same as expeditiously as possible.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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BJP suspends defiant Azad for taking on Jaitley
The BJP on Wednesday suspended its MP Kirti Azad, who has alleged large-scale corruption in Delhi's cricket body when it was headed by now Finance Minister Arun Jaitley. Azad termed the action "unfortunate" and vowed to fight on.
 
"He has been suspended with immediate effect for anti-party activities," Bharatiya Janata Party general secretary Anil Jain told IANS, reading out an official statement.
 
The action came eight years after Azad unleashed a campaign to expose what he said was massive corruption in the Delhi and District Cricket Association (DDCA), which Jaitley headed for 13 years till 2013.
 
The action against Azad drew immediate criticism from Delhi Chief Minister Arvind Kejriwal, who said the suspension had "totally exposed" the BJP. Azad has been punished for battling corruption, he said.
 
Congress leader Digvijay Singh demanded to know if Azad had been suspended for speaking out against corruption.
 
BJP spokesman G.V.L. Narasimha Rao said the party acted against Azad, a three-time Lok Sabha member from Darbhanga in Bihar, for taking an "anti-BJP line".
 
Party sources said a show cause notice was issued to Azad asking him to explain his "anti-party conduct".
 
Azad, a member of the 1983 Indian cricket team which won the World Cup, is the first BJP MP to be suspended since Narendra Modi became the prime minister in May last year.
 
In Ahmedabad, Azad said it was unfortunate he had been suspended for "speaking the truth" about corruption in Delhi's cricket body.
 
"What anti-party activity have I done?" Azad asked as journalists sought his reaction. "I have served my party faithfully. I never called Jaitley corrupt. I only exposed corruption."
 
He said he had never targeted Jaitley "although much of the wrongdoing took place during his tenure" as DDCA head.
 
Azad also denied that he was acting in collusion with the Congress or the Aam Aadmi Party (AAP) which too have taken on Jaitley over the DDCA issue. "It is they who have taken up my issue."
 
Asked about his future programme, a visibly defiant Azad said: "See, what happens now. The fun starts."
 
Son of former Bihar chief minister Bhagwat Jha Azad, the younger Azad has for years carried on a campaign against what he said was major financial irregularities in the DDCA.
 
Although Azad's campaign against the alleged corruption in the DDCA began years ago, matters came to a head after Kejriwal took up the issue in a major way following a CBI raid on the Delhi Secretariat this month.
 
Despite denials by the CBI that it never searched Kejriwal's office and it was after his principal secretary Rajendra Kumar for corruption, the AAP leader has said that CBI officials did enter his room in search of a file on the DDCA and Jaitley.
 
It was then that the BJP began to gently exert pressure on Azad to back off from his campaign as it was embarrassing the party and Jaitley too.
 
And disregarding a reported request from BJP president Amit Shah, Azad held a press conference to expose the alleged wrongdoings in the DDCA on Sunday.
 
He also stunned the BJP by speaking on the issue in the Lok Sabha on Monday.
 
On his part, Jaitley has filed a defamation suit against Kejriwal and other Aam Aadmi Party leaders and sought Rs.10 crore in damages. Azad then went public and asked Jaitley to sue him too.
 
Earlier on Wednesday, actor-turned-BJP MP Shatrughan Sinha urged the party not to take action against Azad. But with both Modi and Shah openly backing Jaitley, it was clear Azad's days in the BJP were numbered.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Congress, government tussle blocks GST bill during winter session
The winter session of parliament that concluded on Wednesday saw a tussle between the opposition and the government on a range of issues with many crucial bills, including the GST and real estate bill, not getting parliamentary approval.
 
The session, which started on November 26 with a two-day special session on "Commitment to Constitution" to mark the 125th birth anniversary of the Constitution's chief architect B.R. Ambedkar, saw the Congress repeatedly targeting the government and forcing adjournments of the two houses.
 
The Rajya Sabha gave its nod to the Juvenile Justice (Care and Protection of Children) Bill, against the backdrop of the release of the juvenile convict in the brutal gang rape of a young girl in the capital in December 2012.
 
Parliament also decided to refer the Insolvency and Bankruptcy Code, 2015, which proposes a single bankruptcy code with deadlines for processing insolvency cases, to a joint committee of the two houses.
 
The Lok Sabha, where the government has a comfortable majority, passed 14 bills and registered productivity of over 100 percent.
 
The Rajya Sabha, where the government lacks majority, passed nine bills and had a productivity of only 46 percent.
 
The Congress protests were more vociferous in the Rajya Sabha.
 
In the Lok Sabha, the party staged repeated walkouts after raising slogans against the government during question hour.
 
Unlike the washed out monsoon session, when the Congress had forced repeated adjournments over its demand for the resignation of three BJP leaders, the party raised many different issues during the winter session.
 
Congress leaders accused the government of political vendetta after BJP leader Subramanian Swamy's complaint in the National Herald case led to Congress president Sonia Gandhi and party vice president Rahul Gandhi's appearance in a trial court.
 
The party also put pressure on the government for the resignation of Finance Minister Arun Jaitley for alleged irregularities in the Delhi and District Cricket Association.
 
The party demanded the resignation of Minister of State for External Affairs Gen. V.K. Singh (retd) over his controversial remarks after an incident in Haryana in which two Dalit children were burnt to death.
 
The Congress also strongly protested the actions of Arunachal Pradesh Governor J.P. Rajkhowa relating to the state assembly and the alleged withdrawal of invitation for a function to Kerala Chief Minister Oommen Chandy.
 
Both the government and the Congress blamed each other for disruptions in parliament. 
 
The push by the government for passage of the Goods and Services Tax bill did not bear fruit as the Congress said it did not want "diluted solutions" to its three demands that include a cap on the GST rate at 18 percent, deletion of the provision for one percent tax by additional levy and an independent dispute resolution mechanism.
 
The GST bill is pending in the Rajya Sabha.
 
Prime Minister Narendra Modi earlier held a meeting with Sonia Gandhi and former prime minister Manmohan Singh to break the ice on the GST bill.
 
The Lok Sabha also took up discussion on incidents of intolerance with the government firmly rejecting allegations by the Congress and some other opposition parties.
 
According to PRS Legislative Research, which tracks the work of parliament, eight bills were introduced and eight bills were passed by both houses during the session.
 
It said the Lok Sabha passed six other bills including those related to Indian trusts, salaries of high court and Supreme Court judges, carriage by air, Bureau of Indian Standards and national waterways.
 
"The end of the session saw building of political consensus which resulted in passage of bills in the upper house. However, their passage without debate raises serious questions about the rule of parliament as the highest law making body," said Chakshu Roy of PRS Legislative Research.
 
PRS said the Lok Sabha was more productive than the Rajya Sabha in the last four sessions.
 
The bills passed by the Rajya Sabha included those on negotiable instruments, commercial courts, atomic energy and payment of bonus.
 
The house also passed the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Amendment Bill and the Arbitration and Conciliation (Amendment) Bill.
 
Industry body Assocham said another opportunity was missed for passage of the GST bill "which is the most important tax reform ever proposed in the country".
 
"It is rather unfortunate that as important an economic issue which would have made a positive difference to India's GDP by 1.5 percent has fallen to expediency of some political parties," Assocham president Sunil Kanoria said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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