INDIA
Jan Lokpal Bill along with other documents on the subject prepared by different groups could be debated in the House and at the end of that debate, the whole record could be sent for consideration of the Standing Committee of the Parliament. He believed this would meet the point Shri Hazare and his colleagues had been making that Parliament must have a chance to give its views on their Bill before sending it to the Standing Committee. Dr Singh submitted that this was one via media which would respect the parliamentary supremacy and, at the same time, enable Parliament to take on board ideas contained in the Jan Lokpal Bill drafted by Shri Hazare and his colleagues. On 27 August Shri Mukherjee made identical statements in both the Lok Sabha and the Rajya Sabha, on
prospects of breaking his fast, which had entered its 12th day.
Initiating the discussion on Shri Mukherjee’s statement,
Smt. Swaraj argued for bringing the Prime Minister under the
THIRD READING: INDIA
The Securities and Insurance Laws (Amendment and Violation) Bill, 2010 The Securities and Exchange Board of India Act, 1992 was enacted, inter alia, to provide for the establishment of a Board to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market and for matters connected therewith or incidental thereto. The Insurance Act, 1938, inter alia, contains the law relating to the business of Insurance and the Insurance Regulatory and Development Authority Act, 1999 was enacted, inter alia, to provide for the establishment of an authority to protect the interests of holders of insurance policies, to regulate,, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.
In order to clear uncertainties on the differences of opinion relating to jurisdiction of the securities market regulator, i.e., the SEBI and the insurance regulator, i.e., the IRDA it had become necessary to clarify that the “life insurance business” also include any unit linked insurance policy and accordingly to amend the Insurance Act, 1938, the Securities Contracts (Regulation) Act, 1956 and the Securities and Exchange Board of India Act, 1992 for the purpose.
Shri Pranab Mukherjee, MP
the issues relating to setting up of a Lokpal. He called for special focus on the issues of citizen’s charter, setting up of Lokayukatas at state levels and bringing lower bureaucracy under the ambit of the Lokpal, apart from taking up other issues to have an effective and strong Lokpal Bill. The Minister proposed to adopt a resolution by consensus at the end of the debate which might satisfy Shri Hazare, brightening the
In order to address the differences of opinion among certain statutory regulators which might arise in future, it was felt necessary to set up a joint mechanism, consisting of the Union Finance Minister as its Chairperson, and Governor, the Reserve Bank of India (RBI), Finance Secretary, Secretary (Financial Services) and chairpersons of the Insurance Regulatory and Development Authority (PFRDA) as its members, for resolving future differences of opinion as to whether any hybrid or composite instrument, having a component of insurance or any other investment or securities market instrument or a component of money market falls within the jurisdiction of the IRDA or SEBI or RBI or PFRDA. As both Houses of Parliament were not in session and immediate action was required to be
taken, the President in terms of provisions under article 123 of the Constitution promulgated the Securities and Insurance Laws (Amendment and Validation) Ordinance, 2010 in June, 2010 to achieve the above objectives. The Government of India brought forward the Ordinance replacing the Securities and Insurance Laws (Amendment and Validation). Provisions of the Ordinance replacing Amending Bill included:
• The amending Bill inserted a new chapter III E in the Reserve Bank of India, Act 1934 with the following new provisions relating to joint mechanism:
• Notwithstanding anything contained in the RBI Act, or the SEBI or any other law, in the event of emerging of any difference of opinion as to whether (i) any instrument being derivative , money market instrument, repo, or reverse repo; (ii) any instrument being policy of Life Insurance Act, 1938-is hybrid or composite instrument, having component money market investment or securities market instrument and falls with in the jurisdiction of RBI or any other financial or stock related legislations, such difference of opinion has to be referred to a joint Committee for resolution.
• Such joint committee would comprise of the Union Finance Minister as ex-officer Chairperson, in the Governor, RBI, Secretaries Department of Economic Affairs and Department of Financial Services; Chairperson, Insurance Regulatory and Development Authority, The Chairman, SEBI; and the chairperson, Pension Fund.
The Bill was passed by Lok Sabha on 2 August
2010 and by Rajya Sabha on 9 August 2010. The Bill as passed by both the Houses of Parliament was assented to by the President of India on 20 August 2010.
Consequently the Securities and Insurance Laws (Amendment and Validation) Ordinance 2010 stood repeated.
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