A look at recent rulings which can affect you
The Securities and Exchange Board of India (Sebi) has approved certain proposals like exclusion of nominee director from the definition of independent directors, compulsory whistle blower mechanism, expanded role of audit committee and prohibition of stock options to independent directors. It has also approved the proposals of at least one woman director on the board, and restricting the tenure of an independent director to 2 terms of 5 years.
The Insurance Regulatory and Development Authority (IRDA) has asked insurance companies to make various disclosures such as the amount which remained unclaimed for more than six months from the due date of settlement and the nature of the unclaimed amount (death claim, maturity benefit, etc) by 31 March 2014 to ensure timely payment of dues.
The IRDA has withdrawn its order requiring insurer agents to maintain a minimum persistency rate of at least 50% of life insurance policies sold for the renewal of their agency license. It has now left it to the discretion of insurance companies to decide their own persistency rate at which they would like to renew the license of agents.
The Forward Markets Commission has allowed exchanges to charge differential transaction charges on delivery based and non-delivery based commodities. Exchanges incur substantial cost differential in offering a delivery based and a non-delivery based commodity.