We had written about VST Industries in Stock Screen (Moneylife, 21 March 2006)—that it was a...
IRDA has come up with momentous regulations which will change the health insurance industry workings if the draft is implemented without watering it down. TPAs' role will get marginalized and hence they may try to scuttle the implementation in its current form
Insurance Regulatory and Development Authority (IRDA) has finally issued draft health insurance regulations addressing several areas of concern which were raised in a public interest litigation (PIL) by social activist Gaurang Damani. The draft covers product design, renewability, portability, file and use procedures, protection of policyholders' interest, servicing of health insurance policy, third party administrators (TPA), contract between insurer and hospitals and so on.
According to Mr Damani, "They have accepted 80%-90% of what I had demanded in the court. A few minor things remain, some of which are already there in their other circulars, but just need to be added to the policy document. I would mention the same in the next court hearing. One point that is missing in the draft guidelines is need for a doctor's signature in case of claims denial."
The important points in IRDA guidelines are related to following:
The commodity market regulator says the ratio of open position with the volume of trading in some commodities is very high compared with international practices in national exchanges
New Delhi: Commodity market regulator the Forward Markets Commission (FMC) has found huge disparity between the ratio of open interest and the volume of trading in some commodities traded on five national commodity exchanges, reports PTI.
In futures market, 'Open Interest' is the number of outstanding contracts that are held by market participants at the end of trading day. Globally, trading volume and open interests go hand-in-hand on exchanges.
"The Commission has done a preliminary analysis ... And it has been observed that the ratio of open position with the volume of trading in some commodities is very high as compared to the international practices in national exchanges," the FMC said in a circular.
The disparity indicates that the day trading volumes and speculation are far in excess of open interest positions, which is not in line with the avowed purpose of use of commodity futures market as a hedging platform, it said.
To understand the situation better, the regulator has directed national commodity bourses -- MCX, NCDEX, NMCE, ACE and ICEX to submit month-wise and year-wise details regarding ratio of open interest with the volume of trade in the top 15 commodities for 2009-10, 2010-11 and 2011-12 fiscal in a week.
It has also asked these exchanges to submit a road map to to bring such ratios at par with the international standards.
Trade analysts said that the trend of high trading volumes and low open interest is not healthy.