Regulations
IRDAI finds Sahara Life promoters 'fit and proper'
The criteria whether the promoter(s) are 'fit and proper' is one of the fundamental criteria while licensing an insurance company
 
India's insurance regulator has not come across any concern relating to Sahara Life Insurance Company Ltd even though SEBI has cancelled the licence of Sahara Mutual Fund on the ground its promoters are not 'fit and proper' to run the mutual fund business.
 
"We have not come across any concern relating to Sahara Life. It is a small company in the life insurance sector. The company's expenses are within limit," T.S.Vijayan, chairman, Insurance Regulatory and Development Authority of India (IRDAI), told IANS on the phone on Thursday.
 
When it was pointed out that Securities and Exchange Board of India (SEBI) action against Sahara Mutual Fund was on the grounds that the promoters are not 'fit and proper' Vijayan said: "We have not come across any issue about Sahara Life."
 
On July 28, India's securities market regulator ordered cancellation of certificate of registration of Sahara Mutual Fund as it found the fund house, Sahara Asset Management Company (AMC) and Sahara Sponsor not "fit and proper" to carry on the business.
 
According to a the market's regulator's statement, its whole-time member Prashant Saran passed the order as Sahara Mutual Fund along with Sahara AMC and Sahara Sponsor were found to be no longer "fit and proper" to carry out the business of Mutual Fund.
 
However insurance industry experts differ from Vijayan's views.
 
The criteria whether the promoter(s) are "fit and proper" is one of the fundamental criteria while licensing an insurance company.
 
"SEBI cancelling the licence of a mutual fund on 'fit and proper' grounds should ring alarm bells in other financial regulators," D.Varadarajan, a Supreme Court advocate and expert in insurance, company, competition law, told IANS.
 
According to him life insurance contract is of longer duration and is a business of promise to pay the nominee the sum assured in the event of death of the policyholder.
 
On the other hand mutual fund investment is generally is of short/medium term duration.
 
Insurance officials are of the view that solvency, management expenses are operational issues whereas 'fit and proper' criteria is more fundamental aspect.
 
A retired senior official of IRDAI too expressed similar views to IANS and added: "Insurance regulator should at least review Sahara Life Insurance's operations."

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COMMENTS

Nitish Yadav

2 years ago

Sahara is surely fit and proper. The way SEBI is taking harsh actions against Sahara are really unnecessary.

Ritwik Patel

2 years ago

This is really the truth. SEBI is unnecessarily defaming Sahara Group. This is a hard time for Sahara but, the truth will win at last as always.

Ritwik Patel

2 years ago

Sahara Group worked for the betterment of people in India. They Subroto Roy and Sahara stood up always whenever the nation wanted help. I wish the truth comes before everyone just like IRDAI and everyone comes to know how much 'fit and proper' Sahara is.

Rajat Chauhan

2 years ago

There have been false allegations on Sahara. Finally an organization that comes up with genuine and true reviews about Sahara Group. I wish the world sees the truth about Sahara and Saharasri.

integrity

2 years ago

Had not a ROC given clearance to now adjudicated illegal two sahara firms ?

manoharlalsharma

2 years ago

the life insurance is the business/contract is of longer duration and is a business of promise to pay the nominee the sum assured in the event of death of the policyholder only it is the CATCH who want to die himself so the INSOLVENT countries attracted our country.once upon CLOSED COMPNYS again open

Gunasekaran

2 years ago

THE PRESENT SET UP OF IRADAI LOOKS IRDAI IS OF, BY AND FOR INSURERS AND NOT FOR INSURED - THE POOR INDIAN CITIZENS - THEY SEND THE GRIEVANCES TO THE DUSTBIN EVEN WITHOUT ACKNOWLEDGING IT. SORRY TO STATE THAT WHAT KIND OF REGULATOR ARE.

REPLY

MOHAN SIROYA

In Reply to Gunasekaran 2 years ago

Right Gunasekaran, IRDAI is not a Regulator but a Manipulator. Name sake Regulators alias paper Tigers are plenty in India, who only see what is good for the Insurer but not for the Insured. But why blame them? Blame the lawmakers who made such faulty laws under which such Regulators take shelter and thrive. Their job is not Regulating but DEVELOPING .Means and methods ,even if crooks are involved in Development ,are not their concern.

Harshad Kamdar

2 years ago

IRDAI is making itself a laughing
stock after several remarks of the Supreme Court against the jailed Sahara chairman.

How can we trust our hard earned savings to such Insurer whose future hangs in the balance

Harshad Kamdar

2 years ago

IRDAI is making itself a laughing
stock after several remarks of the Supreme Court against the jailed Sahara chairman.

How can we trust our hard earned savings to such Insurer whose future hangs in the balance

Sunil Rebello

2 years ago

SEBI & IRDA are behaving like all government departments.
see what is happening with SUN TV.
see what is happening with Aviation Ministry.
and so many other items.
why cant all wait for Supreme Court to guide.
justice delayed is justice denied - pray that our SC & other courts improves serving the people in need of justice.


R S Murthy

2 years ago

Shara Life promoters may be fit but the policy holders may become misfit in due course. I heard one senior professional banker who is no more now commented long back Industries become sick but not Industrialists

Your loan would be routed through Facebook!
Your loan approval will now depend on your Facebook friends -- thanks to a new patent that the social networking giant has recently secured.
 
The new feature would allow lenders to use the borrower's social habits to determine approval of credit.
 
The patent explains that if one applies for a loan, the lender could potentially check out the credit rating of your Facebook friends, The Next Web reported.
 
The average credit rating of your friends collectively needs to be at least a minimum credit score for the loan to be approved.
 
Does this mean that you would have to "unfriend" all those people who are in debt, or have failed to repay their EMIs on time? But how would one know about the credit history of their friends?
 
Experts say there is no reason to lose your sleep over it just yet as Facebook has not made it clear how this patent would be used. Besides, there are laws in place that determine the criteria that lenders can use when deciding your credit worthiness.

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Bharti Airtel takes its 4G services to 296 towns
India's top telecom service provider Bharti Airtel on Thursday said it has commercially launched its fourth generation (4G) communications services in 296 towns across the country.
 
"With the help of the feedback received from the beta launches, we have now built India’s first commercial 4G network that will make high speed mobile broadband a reality," Gopal Vittal, managing director and chief executive officer of the company, said at the launch event here.
 
“The national roll-out today is another small step in our journey to be the most innovative and customer focused brand,” he said, adding that the company's journey in 4G began with the launch in Kolkata in April 2012, followed by successive beta offerings in 51 cities.
 
“The roll-out will take place in few weeks.”
 
Vittal said the company has a projection of $2.2 billion capital expenditure for 2015-16, but declined to divulge the details on the money spent and intended to be spent in offering 4G services.
 
So far, 4G is available in data format in India only.
 
Asked about the rising competition in the 4G space in the country, Vittal said: “We are the children of competition. It’s a brutal market place in India. But it makes one sharper. We thrive in competitive atmosphere.”
 
He said the company's 4G network has, accordingly, been built on an open partner ecosystem model, bringing together the best in the industry.
 
"We are introducing to the Indian market some never-before experiences. Together with our network and device partners, we have enabled deep proliferation of 4G services in the country."
 
Bharti has 230 million subscribers in the country, with a presence in 14 circles.
 
Vittal conceded that the quality of the third generation (3g) services was still not up to the mark, and said: “We have been vocal about call drops." 
 
"We have many challenges over spectrum. Towers and sites pose a bigger challenge. With the growth in data sector, we need more sites. That’s a genuine struggle. The government had been supportive on this.”
 
Around three weeks ago, Vittal had written to Airtel customers across the country to provide suggestions regarding tower sites and he said at the 4G launch event that the company received 20,000 responses, out of which 500 provided leads on potential sites.
 
Asked about the device eco-system for 4G, he mentioned the company has an exclusive tie-up with Samsung, but the team is working towards build a robust device ecosystem.
 
“Out of the 60 million phones that are shipped into India every quarter, 20 million are smartphones. This quarter, we expect some 1 million 4G-compatible phones to be shipped,” Vittal said.
 
He said the company’s focus is also to work with manufacturers to drive down prices.
 
Airtel also announced the launch of a new carrier agnostic mobile app - ‘Wynk Movies’ - which it claimed was first-of-its-kind movie mall that will offer specially curated library of thousands of movies and other popular videos.

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