Insurance & Indian Money Market
Life insurance in India was introduced by Britishers. A British firm in 1818 established the Oriental Life Insurance Company at Calcutta now Kolkata.
Life Insurance Corporation of India (LIC)
- LIC was established on 1st September, 1956, which set the pace for nationalisation of life insurance under the Stewardship of a Deshmukh. It has head office at Mumbai and eight zonal offices the most recent being at Patna.
- LIC is also operating inter nationally in Fiii, Mauritives, UK, Singapore, Nepal, Sri Lanka etc.
General Insurance Corporation (GIC)
GIC was established on 1st January, 1973, with its four subsidiaries, viz
1. National Insurance Company Limited, Kolkata;
2. The New India Assurance Company Limited, Mumbai;
3. The Oriental Fire and General Insurance Company Limited New Delhi; and
4. United India General Insurance Company Limited, Chennai. On 3rd November, 2000, GIC was renamed as GIC Re and approved as Indian Reinsurer and the four subsidiaries of GIC were separated from GIC and are functioning independently under Public Sector General Insurance Companies (GIPSA).
Insurance Regulatory and Development Authority (IRDA)
- IRDA was set up on 19th April, 2000, under IRDA Act, 1999, protect the interest of holders of insurance policies and to promote and to insure orderly growth of the insurance industry.
- IRDA comprises of a Chairman, three whole-time members and four part-time members.
Indian Money Market
Money market is a market for ‘near money’ or it is the market for borrowing and lending of short-term funds.
Instruments of Money Market
- Treasury Bills (14,91, 182 and 364 days)
- Dated Government securities
- Certificate of Deposits
- Commercial Papers
Stock Exchange in India
- Stock exchange or share market deals in shares, debentures and financial securities.
- Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia was established in 1875. It is synonymous with Dalal Street. BSE was corporatised and renamed BSE Limited in 2005.
- In 1894, the Ahmedabad Stock Exchange was started to facilitate dealing in the shares of textile mills.
- In 1908, Calcutta Stock Exchange was started to facilitate market shares of plantations and jute mills.
- There are 23 stock exchanges in India. Among them two are national level stock exchanges namely Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The rest 21 are Regional Stock Exchanges (RSE).
Securities and Exchange Board of India (SEBI)
- It was established in April, 1988, and awarded statutory status by an Act of Parliament in 1992
- It is the regulatory authority of stock exchanges and protects investors from fraudulent dealings.