SEBI, IRDA succumb its financial autonomy to Govt.

Posted By: Religare
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SEBI, IRDA succumb its financial autonomy to Govt.
After protecting their solely held right of maintaining a fiscal autonomy, the prime regulators of Indian economy - Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority (IRDA) have finally accepted their resignation in silence.

By this, sources mean that our central government that has been eyeing the autonomy of these two regulatory bodies from a long while has recently persuaded them to surrender their holdings and include all the money in the public account which is owned by the government.

The previous discussions in this matter clearly showed the inconvenience caused to SEBI and IRDA as they have mutually enjoyed a collective fund Rs. 2,000 crore from varied fees and surcharges. And now the central authority wishes to merge these accounts and withdraw, a limited amount, as and when they require.

Since the issue has reached final consideration apparently, SEBI has already started undergoing administrative and financial changes necessary before and during the dilution of their autonomy.

SEBI during their FY10 was reported to acquired a surplus of Rs1,376.13 crore, while IRDA carried around Rs550 crore.

So the watchdog as we say is now willing to be collared?

Read more about: sebi, irda, insurance, capital market
Story first published: Wednesday, May 18, 2011, 9:30 [IST]
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