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Financial Institutions in India - Basic Info

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India has several Financial institutions that are responsible for their respective tasks for keeping the economy in a Healthy state. All the Financial Institutions in India are being Listed Out here with founding year, functions and other details.

 

Financial Institutions

Company Founded on Headquarter Chief Tasks
Reserve Bank of India 1935 Mumbai Raghuram G Rajan (Governor) India's Central Finance Agency. Responsible for controlling the economy through various Monetary Policy parameters.
India Infrastructure Finance Company Limited 2006 New Delhi S. B. Nayar (Chairman and Managing Director) Finance of Various Infrastructure Projects in Country .
Irrigation & Water Resources Finance Corporation (Subsidiary of IIFCL) 2008 New Delhi S. B. Nayar (Chairman and Managing Director) Finance of Irrigation Projects in Country.
Export-Import Bank of India 1982 Mumbai Yaduvendra Mathur (Chairman and Managing Director) Promotion of Finances of cross border trade and investment for India.
Export Credit Corporation of India 1957 Mumbai Geetha Muralidhar (Chairman and Managing Director) Provides insurance cover in respect of risks in export trade.
Small Industries Development Bank of India 1990 Lucknow Kshatrapati Shivaji  (Chairman and Managing Director) Provide Finances and Aid development of micro, small and medium-scale enterprises (MSME) in India
National Housing Bank (subsidiary of Reserve Bank of India) 1988 New Delhi Sriram Kalyanaraman (Managing Director & Chief Executive Officer) Promote housing finance institutions through financial and other support
Industrial Finance Corporation of India 1993 New Delhi Malay Mukherjee (Managing Director & Chief Executive Officer) Cater to the long-term finance needs of the industrial sector
National Bank for Agriculture and Rural Development 1982 Mumbai Harsh Kumar Bhanwala (Chairman) To take care of matters concerning policy, planning and operations in credit for agriculture and other economic activities in rural areas
Securities and Exchange Board of India 1992 Mumbai Upendra Kumar Sinha, (Chairman) Regulator for securities market in India
Telecom Regulatory Authority of India 1997 New Delhi Ram Sewak Sharma (Chairman) Regulator for telecommunications business in India
Insurance Regulatory and Development Authority of India 2000 Hyderabad T S Vijayan (Chairman) Regulator for Insurance Industry in India
Stock Holding Corporation of India 1986 Mumbai Ramesh NGS (MD) Act as custodian and depository participant to financial institutions. It is also responsible for e-stamping system around India.
National Securities Depository Limited 1996 Mumbai G.V. Nageswara Rao, ( Managing Director & CEO )  
Credit Information Bureau India Limited 2000 Mumbai Satish Pillai, (Managing Director), M.V.Nair, Chairman CIBIL is Indias first Credit Information Company. CIBIL maintains records of an individuals payments of loans and credit cards submitted to CIBIL by member banks on a monthly basis. This information is used to create Credit Information Reports that are provided to credit institutions to evaluate loan applications. CIBIL helps loan providers manage their business and helping consumers secure credit quicker and on better terms.
SME Rating Agency of India 2005 Mumbai Sankar Chakraborti, CEO

SMERA is credit rating agency exclusively set up for micro, small and medium enterprises (MSME) and has grown to rate SME, mid & large corporate. It provides ratings that enable MSME, SMEs,Corporates to raise bank loans at competitive rates of interest.

Its registration with Securities Exchange Board of India as a Credit Rating Agency and accreditation by RBI as an external credit assessment institution (ECAI) to rate bank loan ratings has paved way for SMERA to rate various instruments such as: IPO, NCDs, Commercial Papers, Bonds, Security Receipts, Fixed Deposits etc.



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Stock Exchanges

Stock Market in India is Regulated by SEBI (Securities and Exchange Board of India). There are a total of 20 Stock Exchanges in India at National / Regional Levels. However, NSE (National Stock Exchange of India) and BSE (Bombay Stock Exchange) are the dominant Exchanges of Country.

Sebi Issued Its exit policy guidelines for Stock Exchanges in India. The exit policy mandates regional stock exchange (RSEs) to have minimum networth of Rs 100 crore and annual trading volume of Rs 1,000 crores. Sebi had given two years to all exchanges to comply or exit. As response to these norms, 15 out of 20 Stock Exchanges in India Decided to Exit the business.

Bombay Stock Exchange (BSE), United Stock Exchange (to be merged with BSE), MCX Stock Exchange Ltd (MCX-SX), National Stock Exchange (NSE) and Calcutta Stock Exchange will only continue in business.

 

Bombay Stock Exchange - Bombay Stock Exchange (BSE) was established in 1875 in Mumbai and is considered one of Asias fastest stock exchanges, with speed of 200 microseconds. It is considered oldest stock exchange in Asia. Bombay Stock Exchange is world's 11th largest stock market by market capitalization with $1.7 trillion USD. More than 5,750 companies are listed on BSE. Ashish kumar Chauhan is Managing Director and Chief Operating Officer of BSE. BSE is first in world in terms of Number of Listed Companies. The main Index of BSE is SENSEX.

 

 

National Stock Exchange - National Stock Exchange of India was established in 1992 in Mumbai. It has market capitalization of over US$1.65 trillion, making it worlds 12th-largest stock exchange in terms of Market Capitalization. NSE's flagship index, CNX Nifty is used by investors as a barometer of Indian capital markets. Chitra Ramkrishna is current MD & CEO of NSE. It has around 1700 Companies Listed. NSE has remained as largest exchange in stock index options trade across the globe.

 

 

Multi Commodity Exchange of India (MCX) - is an independent electronic commodity futures trading exchange in India. It was established in 2003 and is based in Mumbai. MCX offers futures trading in bullion, ferrous and non-ferrous metals, energy, and a number of agricultural commodities. MCX is ranked among top 10 Commodity Exchanges in the World. Satyendra Mishra is Current Chairman of MCX and Parveen Kumar Singhal is Joint MD.

Earlier spin-offs from MCX include National Spot Exchange and National Bulk Handling Corporation.

  • National Spot Exchange is an electronic spot exchange for bullion and agricultural commodities. Uttam Prakash Agarwal is Chairman while Shaji Cherian is MD & CEO of National Spot Exchange.
  • National Bulk Handling Corporation - India's largest collateral management company which provides bulk storage and handling of agricultural products. It was founded in 2003 in Mumbai with Anil Choudhary as current MD and CEO.

Main Competition of MCX is National Commodity and Derivatives Exchange (NCDEX). NCDEX is an online multi commodity trading exchange in India. It was founded in 2003 in Mumbai with Samir Shah as current MD & CEO.


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Insurance Companies

Type of Insurance Companies -

Types of Insurance Comanies include General Insurance, Life Insurance and Re Insurance Companies.

Re-Insurance -

Reinsurance is insurance that is purchased by an insurance company (ceding company) from another insurance company (reinsurer) as a means of risk management. Ceding company and reinsurer enter into a reinsurance agreement with conditions upon which reinsurer would pay the claims incurred by ceding company. Reinsurer is paid premiums by the ceding company.

Reinsurance is simple Insurance but the participants aere changed. Lets say Person A purchases an Insurance Policy from Insurance Company C, Its Simple Insurance in which premiums are Paid by Person A to Company C and Company C pays Person A the insurance amount in case any of Insurance conditions are met.

While Re-Insurance is the process in which Company C goes to Re-Insurer Company R just to insure itself from situations such as natural disasters in which case it might need to pay huge ammount to Lakhs of Policy Holders Like Person A.

In India, The Governmwnt Owned General Insurance Corporation of India is the Only Reinsurance Company that undertakes reinsurance activities from several General and Life Insurance Companies in India.

A bout General Insurance Corporation of India -

General insurance business in India was nationalised by General Insurance Business Act (GIBNA) of 1972. GIC was formed on 22 November 1972 under Companies Act, 1956 to control general insurance business in India.

After several mergers, GIC was re-organized with four subsidiary companies - National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. GIC and its subsidiaries had monopoly on general insurance business in India until Insurance Regulatory and Development Authority Act (IRDA Act) of 1999 that came into effect on 19 April 2000. This act amended GIBNA Act and Insurance Act of 1938 and ended monopoly of GIC and its subsidiaries and liberalized insurance business in India.

In November 2000, GIC was renotified as India's Reinsurer, and its role as Holding Company of its subsidiaries was ended.Ownership of the subsidiaries was transferred to the Government of India.

As a result, GIC became sole Re-Insurer in India and is now called GIC Re. Indian insurance companies are required by law to cede 5% of every policy value to GIC Re w.e.f. 1 April 2013.

GIC Re is now an important Re-Insurer in SAARC countries, Southeast Asia, Middle East and Africa, Europe and America. As of 2012, GIC Re ranked 15th largest Reinsurer and 5th largest Aviation Reinsurer in world (S&P).

 

Company Founded on Headquarter Chief Type  
Re-Insurance
General Insurance Corporation of India 1972 Mumbai A K Roy (Chairman & MD) Government Owned  

 

Life-Insurance -

Life insuranceis a contract between insurance policy holder and an insurer where the insurer promises to pay a a sum of money in exchange for a premium, upon death of insured person. Depending on the contract, some terminal illness or critical illness can also trigger payment.

In India, LIC (Life Insurance Corporation of India) is the sole Government Owned Company and by far, the One with biggest Market Share.

Private Companies in Life Insurance Field Include Bajaj Allianz Life Insurance, Birla Sun-Life Insurance, HDFC Standard Life Insurance, ICICI Prudential Life Insurance, ING Vysya Life Insurance, Max New York Life Insurance, MetLife Insurance, Kotak Mahindra Old Mutual Life Insurance, SBI Life Insurance, TATA AIG Life Insurance, Reliance Life Insurance Company.

About Life Insurance Company of India

LIC was founded on Sep 1, 1956 when Parliament passed Life Insurance of India Act that nationalised private insurance industry in India. Over 245 insurance companies and provident societies were merged to create Life Insurance Corporation. LIC is headquartered in Mumbai. It is largest insurance company in India with estimated asset value of US$240 billion and As of 2013, it had total life fund of Rs.1433103.14 crore.

 

Company Founded on Headquarter Chief Type
Government Owned
Life Insurance Corporation of India 1956 Mumbai Chairman - S.K Roy, Managing Directors - S.B Mainak, V.K Sharma, Usha Sangwan Government Owned


 

General Insurance -

General insurance are opposite to life insurance, Insurance contracts that do not come under the ambit of life insurance are called general insurance. The different forms of general insurance are fire, marine, motor, accident , Health and other miscellaneous non-life insurance.

There are 5 Government Owned General Insurance Companies in India as detailed.

Company Founded on Headquarter Chief Tagline
Government Owned
New India Assurance Company 1919 Mumbai G.Srinivasan (Chairman Cum Managing Director) Leadership and beyond
National Insurance Company 1906 Kolkata Rajesh Aggarwal (CMD) Thoda Simple Socho
Oriental Insurance Company 1947 New Delhi A.K.Saxena (CMD) Prithvi, Agni, Jal, Akash, Sabki Suraksha Hamare Paas
United India Insurance Company 1938 Chennai Milind Kharat (CMD) Rest Assured with Us
Agriculture Insurance Company of India 2002 New Delhi Joseph Plappallil (CMD)  Sampann Bharat Ki Pehchan, Beemit Phasal Khushal Kisan

 

Private General Insurance Companies in India Include - Bajaj Allianz General Insurance, ICICI Lombard General Insurance, IFFCO-Tokio General Insurance, Reliance General Insurance, Royal Sundaram Alliance Insurance, TATA AIG General Insurance, Cholamandalam General Insurance adn Others.



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