The much-delayed Insurance Bill seeks to raise the foreign investment cap in the sector from 26 per cent to 49 per cent, with a rider that the management control rests in the hands of Indian promoter.
The government has not done its homework or made any attempt to forge a consensus on this matter that affects millions of people in the organised sector, says Harsh Roongta.
Gross enrolments of new subscribers with ESIC were 1.49 crore during the entire financial year 2018-19.
The increase in joining age will provide the options to the subscribers who are at the fag-end of the employment
The Insurance Regulatory and Development Authority (Irda) has stuck to its guns on returns from unit-linked pension plans. Despite several representations from the industry, the regulator has decided that insurers will have to provide guaranteed returns of 4.5 per cent on gross premiums until March 11, 2011.
When the subscriber reaches superannuation or the age of 60, 60 per cent of the total corpus accumulated in NPS can be withdrawn as a lump sum.
The withdrawal right is hemmed by many conditions.
Taxation has played spoilsport despite double digit returns.
While reasonable safeguards should be built in, there can't be restrictions on the individual's right to leave her/his money to whoever s/he wants, notes Harsh Roongta.
The term of the last chairman of the pension regulator, Yogesh Agarwal, was cut short by the finance ministry in November.
Ramalingam Kalirajan explains the pros and cons of both investment types.
Green signal from Jaitley; CVC okays Hemant Contractor for head of PFRDA
Now govt employees to enjoy greater say in how their NPS corpus is invested. Younger employees should raise their allocation to equities in this very long-term investment instrument
The Cabinet Committee on Parliamentary Affairs took the decision to extend the session till September 6 at a meeting held in Parliament House.
The aggressive life cycle fund will allow equity exposure of up to 75%, up from the current limit of 50%.
The choice should depend on the size of the retirement corpus, stage in life, and state of health.
Government is framing a rule that will make it compulsory for regulators like Sebi, Irdai and PFRDA to deposit a significant portion of their reserves into the Consolidated Fund of India.
'Space out when raising funds; Sebi mulls securitisation platform'
Better stick to equity diversified funds, says Larisssa Fernand
According to the Centre's legislative business list for the upcoming session, three bills have also been listed to replace three ordinances.
The ICICI board is looking to the retired petroleum secretary to provide 'maturity and sagacity'.
The government's agenda also includes the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.
The 21st meeting of FSDC comes against the backdrop of the economy hitting a six-year low growth rate of 5 per cent in the first quarter of 2019-20. Even some of the macroeconomic data for the second quarter does not portray an encouraging picture of the economy.
Since NPS is used for a long-term goal like retirement, allowing younger investors to have higher exposure to equities will give them a chance to earn higher returns.
The government wants to reduce the rate of contribution - part of the employee's share - for a class of workers depending upon age, income or gender, without changing the contribution from the employer's share.
The Financial Sector Legislative Reforms Commission had in a report last year proposed a unified regulator for the entire financial sector -- markets, insurance, commodities and pension. It had, however, proposed to keep banking out of its purview for now.
The opposition will seek to target the government on the issue of farmers' plight as well as their demand for a legal backing for minimum support price.
Restrict investment to Rs 50,000 for tax benefits, experts tell Sanjay Kumar Singh, but caution that taxation at maturity and compulsory annuities are dampers.
'GIFT City is now on a growth trajectory,' says Tapan Ray, MD and group CEO, GIFT City, 'The time has come for the GIFT City to take the big leap and emerge as the next financial hub of Asia.'
With barely a week left, the session has been able to accomplish next to no legislative business, says Aditi Phadnis
Those who have crossed 50 must show the greatest urgency. They need to achieve a corpus that can sustain them and their spouses for at least 25-30 years after retirement.
Since there are many and complicated choices, retail investors stand to benefit
The sudden exit of Yogesh Agarwal as the chairman of the Pension Fund Regulatory and Development Authority, or PFRDA, has once again brought the relationship between financial sector regulators and the finance ministry into sharp focus.
Congress senior leaders concede that UPA could be safe in terms of numbers but that does not solve problem totally
Now that the National Pension Scheme offers more choices than the Employees Provident Fund, is more transparent and also allows to choose the level of allocation to equities as investors like, should one switch to the NPS?
Raising equity exposure to 50 per cent in the National Pension Scheme will benefit young investors, provided they can stomach higher volatility.
Whatever the outcome of the assembly election in Rajasthan, Ashok Gehlot is firmly ensconced in the Congress inner circle.
Life Insurance Corporation (LIC) has received the insurance regulator's nod for time till January-end 2023 to dispose of investments in pension, group and life annuity funds, which do not fall in the "approved investment" category. Had the Insurance Regulatory and Development Authority (Irdai) denied more time to transfer the investments to shareholders' fund at amortised cost, the loss that would have accrued in the profit and loss account (shareholders account) would have been Rs 5,365.83 crore as of September 2021, LIC said in its draft red herring prospectus (DRHP).
'MFs have a combined exposure of Rs 3.2 lakh crore to NBFCs, out of which Rs 1.1 lakh crore matures by September 2019.'
To curb mis-selling of policies and rationalise commissions, radical changes have been proposed to help investors.
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