Companies & Sectors
Standard micro-insurance products to hit market soon

IndiaFirst Life Insurance said it expects IRDA approval in a month and then will introduce standard products in the market that can be sold off-the-shelf even through kirana stores

Kolkata: The proposed standard product on micro insurance for the insurance industry is expected to get the regulator's nod in a month's time and such off-the-shelf products would be available by March 2013, reports PTI.

 

"We hope that the standard product on micro-insurance for the insurance industry will get Insurance Regulatory and Development Authority (IRDA)'s approval in a month's time," IndiaFirst Life Insurance managing director & CEO P Nandagopal said on the sidelines of an insurance meet.

 

"We are waiting IRDA approval and soon after, we will introduce the standard product in the market that can be sold off-the-shelf even through kirana stores," he said.

 

The products will be in place within March, Nandagopal said.

 

Sector regulator IRDA had earlier said it was planning to develop 10 standard products in consultation with industry bodies which could be launched by the insurance companies without seeking regulatory nod.

 

Standard micro-insurance policy, or one of such products, is aimed to provide a comprehensive package of insurance cover relevant to persons belonging to the economically weaker sections in rural and urban areas.

 

Both life and non-life companies will offer a composite product with options of additional cover from both life and non-life, Nandagopal said.

 

Moreover, such standard product could be sold by both life and non-life companies.

 

IRDA would allow cooperative banks, regional rural banks, primary agricultural co-operative societies and individuals (shopkeepers, medical store owners, petrol pump owners, public telephone operators) to act as micro insurance agents.

User

Credibility of primary markets at stake: SEBI chief

SEBI chief Sinha said credibility of primary markets is at stake as retail investors on many occasions are left clueless about their returns as scores of stocks are trading way below listing price

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Wednesday cautioned the credibility of primary markets is at stake as retail investors on many occasions are left clueless about their returns as scores of stocks are trading way below listing price, reports PTI.

 

It also said investment bankers need to introspect their role on the price discovery mechanism for these markets.

 

"The credibility of our markets is at stake. The i-bankers need to introspect whether their behaviour challenges the entire merit-based versus price discovery mechanism or not. We need some amount of sanity in pricing and IPO disclosures," SEBI Chairman UK Sinha told a summit of i-bankers here in west India.

 

Stating that many of the newly-listed stocks are trading below listing price, Sinha said: "There is something wrong if two-thirds of the issues between 2009 and 2012 are trading below market decline levels. Call auction data show that volatility on opening day have reduced considerably.

 

"SEBI has noticed in some IPOs that due diligence wasn't done properly. Assets mentioned were missing or weren't even mentioned," he said.

User

COMMENTS

Nilesh KAMERKAR

4 years ago

That is the nature of the beast. . .

There is no free lunch. Those who apply in IPOs need to do with their eyes WIDE open.

Nobody questions the credentials of a third grade company if the price keeps going up after listing.

The odds of making money on listing are not very different from the odds of making money in a casino. The 'players' have to walk in with their eyes open . . . or just walk away.

Remember FaceBook IPO and its aftermath? -

Vaibhav Dhoka

4 years ago

Very few investor invest after reading the details as they are illiterate in terms of financial language.And this lacunae is used to grab in primary market.They go only on sentiments and mouth publicity,and finally looses money.Unless SEBI takes harsh steps small investors are bound to remain away from market.Then there is investor grievance mechanism which disastrously failure on part of SEBI. The same is mutual fund investment,when in IPO market value is low the same is reflected in low NAV of scheme,the issuer may boast of over subscription but ultimate looser is SMALL INVESTOR.

Proposed RBI draft guidelines positive for NBFCs:India Ratings

India Ratings and Research said there would be limited financial impact on NBFCs from the proposed revisions in asset classification, provisioning norms and higher tier-I capital ratio requirements

Mumbai: Non-banking Finance Companies (NBFCs) are likely to benefit from the proposed guidelines issued by the Reserve Bank of India (RBI) which focus on enhanced corporate governance, disclosure standards and tightened liquidity management requirements, reports PTI.

 

"Domestic non-banking finance companies (NBFCs) will benefit from the enhanced corporate governance and disclosures standards and tightened liquidity management requirements proposed recently by the Reserve Bank of India (RBI)," a report by India Ratings and Research said.

 

It also said that there would be limited financial impact on NBFCs from the proposed revisions in asset classification, provisioning norms and higher tier-I capital ratio requirements.

 

The RBI released the new draft guidelines for NBFCs based on the Usha Thorat Committee report recommendations on 12 December 2012.

 

According to the proposed guidelines, NBFCs have to recognise a loan as non-performing asset (NPA) if it is not serviced for 90 days from the present 180 days NPA norm.

 

The new guideline also proposes to implement 10% capital adequacy ratio (CAR) norm for most of the NBFCs.

 

Referring to the capital adequacy ratio, the report said, " We do not expect any significant impact on the operating performance of the requirement of a minimum Tier I capital ratio of 10% (current requirement of 7.5% for retail finance NBFCs)."

 

It also added that the transition of NBFCs to the 90-day NPA norm from the present 180 day from Q1 of FY16 would not have significant impact on profitability.

 

"The transition of NBFCs to the 90-day NPA norm from Q1FY16 (same as at banks) from a 180-day NPA norm is unlikely to have a significant impact on NBFCs' profitability in the medium term," the report said.

 

It, however, added that NPA ratios on a 90-day delinquent basis could nearly double as most of the major NBFCs and incremental provisioning expenses (including assuming the provision for standard assets at 0.40%, against the 0.25% mandatory) could reduce return on average assets (ROA) by around 5-40 basis points.

 

The rating agency also noted that the monitoring and collection systems and borrower behaviour are likely to adjust during the transition phase and the 90-day delinquencies are likely to reduce substantially by the proposed time of implementation.

User

COMMENTS

Ravi Saini

4 years ago

Nbfcs should also be given greater powers same as banks I.e. sarfaesi act.

Ravi saini

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)