Study Notes on Financial Regulators in India for UGC NET || Commerce || Management || Economics

By Sakshi Ojha|Updated : October 2nd, 2020

UGC NET Exam is conducted twice a year by NTA. There are ten units in Paper-1 and each unit has equal weightage in the examination. Most Important Topics in UGC NET Environment, Logical Reasoning, Teaching Aptitude, Research Aptitude, Communication, ICT, Higher Education. Below we are explaining the topic Financial Regulators in India.

FINANCIAL REGULATORS IN INDIA

Introduction:

Who keeps a check of the work we do in the office? Our boss.

Who keeps a check if we are following Civic code? Our Government.

Who keeps a check for any Injustice and happening in the country? Our law and order system.

Therefore, supervision, control, and policymaking are some important aspects of efficient and stable institutions. Similarly, we have ‘Financial Regulators’ that control the Indian Financial System. Financial regulators are none but government bodies which regulate the financial services industry including market, exchanges and firms.

NEED / AIM OF FINANCIAL REGULATORS.

  • Market confidence: to maintain confidence in the financial system.
  • Financial stability: for contributing to the protection and improvement of stability of the financial system.
  • Consumer protection: to secure a suitable amount of protection for consumers.
  • Reduction in finance-related crimes: reducing the extent to which it is possible for a regulator business to be used for a purpose connected with financial crimes.

 FINANCIAL REGULATORS IN INDIA

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A- RESERVE BANK OF INDIA

The Reserve bank has been given statutory powers of supervision of banks and the promotion of efficient banking in India. The RBI has been given wide powers of policymaking,  supervision, and control over commercial, co-operative and regional banks.

  • No bank can be established in India without obtaining a license from RBI.
  • The Nationalized banks and regional rural banks are directly controlled and supervised by the Reserve bank.
  • It ensures price stability, financial stability, and monetary stability in the country.
  • It ensures the regulation of credit and currency in the economy.
  • It ensures the development of efficient financial structure in the country.

B- SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

It is an apex body for regulating the securities market in India. It came into existence in 1988 and was given statutory power on April 12, 1992.

  • Designing guidelines and code and conduct for the proper functioning of financial intermediaries and corporate.
  • Regulation of business in the stock exchange and any other securities market.
  • Conducting enquires and audit of exchanges.
  • Registration and protection of interest of brokers,sub-brokers, investment advisors, portfolio managers, trustees of the trust deeds, merchant bankers, and intermediaries who are associated with the stock exchange.
  • Levying of fees.
  • Performing and exercising powers.
  • Register and regulate credit rating agencies and self-regulating organizations.
  • Prohibit insider trading, fraudulent, and unfair trade practices.

C- PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

It is the statutory pension regulatory authority of India established under the PFRDA Act, 2003. It was established in August 2003, and its headquarters are in New Delhi. It functions under the aegis of the Ministry of Finance, Department of Financial Services.

  • It is responsible for the appointment of various intermediaries agencies such as the Central Recordkeeping Agency(CRA), Pension fund managers, NPS Trustee Bank.
  • It protects the interest of subscribers to schemes of pension funds.
  • PFRDA promotes old age income security by establishing, developing, and regulating pension funds.
  • Settle disputes among intermediaries and also between subscribers and intermediaries.
  • Approves schemes, terms, and conditions, and laying down norms for management of corpus of pension funds.

D- INSURANCE REGULATORY AND DEVELOPMENT  AUTHORITY OF INDIA

It is an apex statutory body that regulates and develops the insurance industry in India. It was constituted as per provisions of insurance regulatory and development authority Act 1999. It is headquartered in Hyderabad, Telangana.

  • Registration, Issuing, Renewing and cancellation of license.
  • Qualification specification, the code of conduct, and training of agents and intermediaries.
  • It protects the rights of insurance policyholders, provides registration certificate to life insurance companies and renews, modifies, cancels, or suspends this registration certificate as and when appropriate.
  • It also promotes efficiency in the conduct of insurance business, promotes and regulates professional organizations connected with insurance and reinsurance
  • It also regulates investment of funds by insurance companies, adjudicates between insurers and intermediaries of insurance.

 E- FORWARD MARKETS COMMISSION OF INDIA

Just as SEBI is the regulatory authority of the stock market, FMC was the regulatory authority for the commodity market in India. It was the chief regulator of forward and future markets in India. The main aim of this body was to advise the central government on matters of Forward Contracts act,1952. The FMC was merged with SEBI in 2015.

UGC NET Paper 2 Syllabus 2022 - Topics Wise Details

The UGC NET Test will consist of two papers. Paper 1 has 50 questions with each question comprising of 2 marks.  Paper 2 will have 100 questions of 2 marks each. The direct link to the UGC NET syllabus pdf is linked below. Go through the UGC NET Exam Pattern 2022

Note: The duration of the examination will be 3 hours only. There will be no break. It will be a CBT mode examination and the candidate can choose any paper to attempt first. 

UGC NET Exam Pattern

  • The cut-off will be decided after obtaining marks out of 300 (Paper I and Paper II).

Papers

Total number of Questions

Total Marks

Duration

Paper I

50

100

3 hour duration

Paper II

100

200

Also Read: 

Best Books for UGC NET Paper 2Read Here
Preparation Tips for UGC NETRead Here
UGC NET 3 month study planRead Here
UGC NET 6 month study planRead Here

Mock tests for UGC NET Exam

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