• About Us
  • Contact Us
Current Date

  • Login
  • Register
B2B Infomedia
No Result
View All Result
  • Home
  • Fintech
    Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

    Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

    Balancehero India appoints Jayesh Jain as Group CFO

    Balancehero India appoints Jayesh Jain as Group CFO

    Driving digital lending: UPI’s key role

    Driving digital lending: UPI’s key role

    CredAble expands its wings to eight new regions

    CredAble expands its wings to eight new regions

    MobiKwik’s ‘Lens’  feature to improve financial wellness

    MobiKwik’s ‘Lens’  feature to improve financial wellness

    Perfios gets $229 million from Kedaara Capital

    Perfios gets $229 million from Kedaara Capital

  • BFSI
    Yes Bank appoints Pankaj Sharma as Chief Strategy and Transformation Officer

    Yes Bank appoints Pankaj Sharma as Chief Strategy and Transformation Officer

    Sumnesh Joshi to honour 4th BFSI & Fintech Conclave & Awards as Chief Guest

    Sumnesh Joshi to honour 4th BFSI & Fintech Conclave & Awards as Chief Guest

    Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

    Bharti AXA Life Insurance and PolicyBazaar launch Wealth Maximizer

    SEBI brings flexibility in its framework for LCs

    SEBI brings flexibility in its framework for LCs

    ICICI Lombard names Sanjeev Mantri as MD and CEO

    ICICI Lombard names Sanjeev Mantri as MD and CEO

    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

  • Education
    Aditya Birla Sun Life Insurance and Artivatic.ai launch AI-based smart underwriting platform

    IBM to train two million learners in AI by 2026

    IIM Sirmaur organizes Alumni Chapter Meet in Mumbai

    IIM Sirmaur organizes Alumni Chapter Meet in Mumbai

    Delhi University starts MBA in AI & machine learning, gets 600 applications for 60 seats

    Delhi University starts MBA in AI & machine learning, gets 600 applications for 60 seats

    IIM Sirmaur and NSE Academy Collaborate for Joint Certification Programmes

    IIM Sirmaur and NSE Academy Collaborate for Joint Certification Programmes

    IIM Sirmaur Celebrates the Success of its First Chapter Meet at India Habitat Center, New Delhi

    IIM Sirmaur Celebrates the Success of its First Chapter Meet at India Habitat Center, New Delhi

    IIT Madras introduces online MTech course for working professionals

    IIT-Madras’ Zanzibar campus to start hiring, plans classes in October

  • Enterprise
    Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

    Cisco to acquire Splunk to help make organisations secure and resilient

    SBI sees 14%-15% corporate credit growth in FY23

    SBI seeks buyers for its Rs 96,000 crore distressed loans

    Reliance General Insurance to get Rs 200 cr capital infusion from Reliance Capital

    Reliance General Insurance gets Rs 200 cr capital infusion from parent

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Bank of Baroda, DBS Bank and Karur Vysya Bank likely to sell their cumulative stake of just over 30% to Canara Bank

    RBI response sought on PIL seeking uniform banking code for forex transactions

    RBI permits banks to open vostro accounts from 22 countries for trade in rupee

    Piramal Finance aims at ‘Budget Bharat’ to expand

    India’s Piramal plans to raise $1.5bn for private credit

  • Health
    DHA and IIM Raipur announce enrollment date for PG and diploma programmes in digital health

    DHA and IIM Raipur announce enrollment date for PG and diploma programmes in digital health

    This World Patient Safety Day, NABH puts emphasis on digital health

    This World Patient Safety Day, NABH puts emphasis on digital health

    India’s digital startup ecosystem a catalyst for global healthcare transformation, says Piyush Goyal

    India’s digital startup ecosystem a catalyst for global healthcare transformation, says Piyush Goyal

    iHub Anubhuti signs MoU with Digital Health Associates to drive healthcare innovation and joint research

    iHub Anubhuti signs MoU with Digital Health Associates to drive healthcare innovation and joint research

  • Pharma
    Citi invests in Peru’s fintech firm Rextie

    Cabinet approves FDI in Suven Pharmaceuticals

    Transcell and Quantiphi develop Digital Animal Replacement Technology

    Transcell and Quantiphi develop Digital Animal Replacement Technology

    Lincoln Pharmaceuticals Reports Net Profit of Rs. 19.01 crore in Q1 FY24

    Lincoln Pharmaceuticals Reports Net Profit of Rs. 19.01 crore in Q1 FY24

    First Indian intranasal Covid vaccine to be launched on Republic Day

    First Indian intranasal Covid vaccine to be launched on Republic Day

    India aims for greater market access for pharma in UK: Official

    Aurobindo Pharma aims to complete Rs 2000 Cr Pen-G plant in Andhra Pradesh by March’24

    India aims for greater market access for pharma in UK: Official

    India aims for greater market access for pharma in UK: Official

  • Technology
    Citi invests in Peru’s fintech firm Rextie

    WestBridge Capital makes investment into TSS Trackwizz

    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

    Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

    Cisco to acquire Splunk to help make organisations secure and resilient

    WhatsApp introduces ‘Flows’ for its business platform

    WhatsApp introduces ‘Flows’ for its business platform

    Jio launches Jio Airfiber

    Jio launches Jio Airfiber

    Aditya Birla Sun Life Insurance and Artivatic.ai launch AI-based smart underwriting platform

    IBM to train two million learners in AI by 2026

  • Interviews
    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

    “Fintechs are disrupting banking worldwide”

    “Fintechs are disrupting banking worldwide”

  • Events
    • Upcoming Events
    • Past Events
  • Home
  • Fintech
    Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

    Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

    Balancehero India appoints Jayesh Jain as Group CFO

    Balancehero India appoints Jayesh Jain as Group CFO

    Driving digital lending: UPI’s key role

    Driving digital lending: UPI’s key role

    CredAble expands its wings to eight new regions

    CredAble expands its wings to eight new regions

    MobiKwik’s ‘Lens’  feature to improve financial wellness

    MobiKwik’s ‘Lens’  feature to improve financial wellness

    Perfios gets $229 million from Kedaara Capital

    Perfios gets $229 million from Kedaara Capital

  • BFSI
    Yes Bank appoints Pankaj Sharma as Chief Strategy and Transformation Officer

    Yes Bank appoints Pankaj Sharma as Chief Strategy and Transformation Officer

    Sumnesh Joshi to honour 4th BFSI & Fintech Conclave & Awards as Chief Guest

    Sumnesh Joshi to honour 4th BFSI & Fintech Conclave & Awards as Chief Guest

    Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

    Bharti AXA Life Insurance and PolicyBazaar launch Wealth Maximizer

    SEBI brings flexibility in its framework for LCs

    SEBI brings flexibility in its framework for LCs

    ICICI Lombard names Sanjeev Mantri as MD and CEO

    ICICI Lombard names Sanjeev Mantri as MD and CEO

    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

  • Education
    Aditya Birla Sun Life Insurance and Artivatic.ai launch AI-based smart underwriting platform

    IBM to train two million learners in AI by 2026

    IIM Sirmaur organizes Alumni Chapter Meet in Mumbai

    IIM Sirmaur organizes Alumni Chapter Meet in Mumbai

    Delhi University starts MBA in AI & machine learning, gets 600 applications for 60 seats

    Delhi University starts MBA in AI & machine learning, gets 600 applications for 60 seats

    IIM Sirmaur and NSE Academy Collaborate for Joint Certification Programmes

    IIM Sirmaur and NSE Academy Collaborate for Joint Certification Programmes

    IIM Sirmaur Celebrates the Success of its First Chapter Meet at India Habitat Center, New Delhi

    IIM Sirmaur Celebrates the Success of its First Chapter Meet at India Habitat Center, New Delhi

    IIT Madras introduces online MTech course for working professionals

    IIT-Madras’ Zanzibar campus to start hiring, plans classes in October

  • Enterprise
    Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

    Cisco to acquire Splunk to help make organisations secure and resilient

    SBI sees 14%-15% corporate credit growth in FY23

    SBI seeks buyers for its Rs 96,000 crore distressed loans

    Reliance General Insurance to get Rs 200 cr capital infusion from Reliance Capital

    Reliance General Insurance gets Rs 200 cr capital infusion from parent

    Bank of Baroda says reduced exposure to Adani Group in two years, no concern on asset quality

    Bank of Baroda, DBS Bank and Karur Vysya Bank likely to sell their cumulative stake of just over 30% to Canara Bank

    RBI response sought on PIL seeking uniform banking code for forex transactions

    RBI permits banks to open vostro accounts from 22 countries for trade in rupee

    Piramal Finance aims at ‘Budget Bharat’ to expand

    India’s Piramal plans to raise $1.5bn for private credit

  • Health
    DHA and IIM Raipur announce enrollment date for PG and diploma programmes in digital health

    DHA and IIM Raipur announce enrollment date for PG and diploma programmes in digital health

    This World Patient Safety Day, NABH puts emphasis on digital health

    This World Patient Safety Day, NABH puts emphasis on digital health

    India’s digital startup ecosystem a catalyst for global healthcare transformation, says Piyush Goyal

    India’s digital startup ecosystem a catalyst for global healthcare transformation, says Piyush Goyal

    iHub Anubhuti signs MoU with Digital Health Associates to drive healthcare innovation and joint research

    iHub Anubhuti signs MoU with Digital Health Associates to drive healthcare innovation and joint research

  • Pharma
    Citi invests in Peru’s fintech firm Rextie

    Cabinet approves FDI in Suven Pharmaceuticals

    Transcell and Quantiphi develop Digital Animal Replacement Technology

    Transcell and Quantiphi develop Digital Animal Replacement Technology

    Lincoln Pharmaceuticals Reports Net Profit of Rs. 19.01 crore in Q1 FY24

    Lincoln Pharmaceuticals Reports Net Profit of Rs. 19.01 crore in Q1 FY24

    First Indian intranasal Covid vaccine to be launched on Republic Day

    First Indian intranasal Covid vaccine to be launched on Republic Day

    India aims for greater market access for pharma in UK: Official

    Aurobindo Pharma aims to complete Rs 2000 Cr Pen-G plant in Andhra Pradesh by March’24

    India aims for greater market access for pharma in UK: Official

    India aims for greater market access for pharma in UK: Official

  • Technology
    Citi invests in Peru’s fintech firm Rextie

    WestBridge Capital makes investment into TSS Trackwizz

    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

    Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

    Cisco to acquire Splunk to help make organisations secure and resilient

    WhatsApp introduces ‘Flows’ for its business platform

    WhatsApp introduces ‘Flows’ for its business platform

    Jio launches Jio Airfiber

    Jio launches Jio Airfiber

    Aditya Birla Sun Life Insurance and Artivatic.ai launch AI-based smart underwriting platform

    IBM to train two million learners in AI by 2026

  • Interviews
    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

    “CERT reported over 17,000 cyberattacks on Indian banking and finance sector in 2022”

    “Fintechs are disrupting banking worldwide”

    “Fintechs are disrupting banking worldwide”

  • Events
    • Upcoming Events
    • Past Events
No Result
View All Result
B2B Infomedia
No Result
View All Result
Home BFSI

IRDA directive to shun brokers for gilt trades baffles insurers

According to a new directive by IRDA that has sent all insurers into a tizzy, buying and selling of sovereign securities can only happen on the anonymous trading screen. IRDA has also laid down that while using intermediaries for trades in equities and corporate bonds, no broker should handle more than 5% of the total volume in secondary market transactions.

Prashant Dwivedi by Prashant Dwivedi
November 15, 2022
in BFSI, Enterprise
A A
0
IRDA directive to shun brokers for gilt trades baffles insurers
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

Insurance companies, a significant investor group in the financial markets, have been told by the regulator that they can no longer cut deals with brokers for trading in government securities.

According to a new directive by The Insurance Regulatory and Development Authority (IRDA) that has sent all insurers into a tizzy, buying and selling of sovereign securities can only happen on the anonymous trading screen.

“Several insurers have reached out to IRDA. We think IRDA should issue some clarification. It’s too harsh a directive… insurance companies will find it very difficult to directly trade thinly-traded securities on screen without a broker,” the CFO of a life company told.

IRDA has also laid down that while using intermediaries for trades in equities and corporate bonds, no broker should handle more than 5% of the total volume in secondary market transactions. The insurance regulator has inserted these conditions in the ‘Master Circular on Investments’ while reviewing the earlier set of directives which were issued in 2016.

Close to half the portfolio of insurers are held in sovereign papers and other state-backed securities. Of the 100-odd government bonds about 5-6 are liquid papers.

IRDA, in the ‘Master Directive’ released on October 27, 2022, has categorically said that “all secondary market trading in government securities shall be placed via NDS-OM only.” The Negotiated Dealing System – Order Matching (or, NDS-OM), operationalised by the Reserve Bank of India (RBI), is a faceless trading platform where orders are matched without revealing the identity of the buyer or the seller.

“But it would be a challenge in getting the right price for illiquid papers in the absence of proper bid-ask quotes from brokers.

The other directive on spreading trades across a larger number of brokers could force companies to empanel less efficient brokers. The intention of the regulator may be to lower transaction cost and bring in greater transparency. But, it may not help if a trader is unable to fish out fine quotes which typically come from brokers,” another senior industry official told. “Most of us feel IRDA should take a relook and tweak the circular,” said the person.

In trades executed on the NDS-OM platform, the Clearing Corporation of India (CCIL) acts as the central counterparty providing guaranteed clearing and settlement functions for transactions in money, government securities, foreign exchange and derivatives (like currency forwards and interest rate swaps).

For the handful of liquid securities, for which there are ready takers, the execution and settlement of trades usually take place smoothly on the NDS-OM screen. However, about 25-30% of the deals by insurers are ‘voice trades’ – where a trader calls a broker or an institution (which would be the buyer or the seller) to obtain quotes and then put through the trade on NDS-OM with the buyer and the seller simultaneously punching in the orders. Alternatively, two institutions can strike a bilateral deal, involving a broker which issues a contract note and reports it on the stock exchange. Here too, the trade is reported on NDS-OM.

The insurance industry bodies are expected to send in their representations soon, asking for more time to implement the directive, modification of the language of the circular with regard to government trades as well as on the distribution of trade volumes to brokers. “Today, an insurance company typically uses 8-10 brokers. With a 5% cap, the number of brokers has to be increased to 20,” said another person.

According to the IRDA directive, the total volume of the business including debt and equity given to each empanelled broker shall be monitored on a rolling three months basis to ensure that none of the panel brokers exceeds the limit of 5% of the total actual secondary market transactions through brokers, up to that particular period.

The Insurance Act, 1938 requires a life Insurer to invest his controlled funds as per Section 27A and a general insurer to invest his total assets as per Section 27B in ‘approved investments’. The Act further requires a life insurer to hold not less than 50% and a general insurer to hold a minimum of 30% in approved securities, which includes investment in GOI securities.

0Like
0Dislike
50% LikesVS
50% Dislikes
Source: Economic Times
Tags: Government SecuritiesInsuranceIRDA
Previous Post

RBI imposes penalties on nine cooperative banks for violating compliances

Next Post

Most states agree to adopt RBI’s fin literacy programme for schools: Official

Prashant Dwivedi

Prashant Dwivedi

Related Posts

Yes Bank appoints Pankaj Sharma as Chief Strategy and Transformation Officer
BFSI

Yes Bank appoints Pankaj Sharma as Chief Strategy and Transformation Officer

September 26, 2023
Sumnesh Joshi to honour 4th BFSI & Fintech Conclave & Awards as Chief Guest
BFSI

Sumnesh Joshi to honour 4th BFSI & Fintech Conclave & Awards as Chief Guest

September 26, 2023
Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants
BFSI

Bharti AXA Life Insurance and PolicyBazaar launch Wealth Maximizer

September 25, 2023
Next Post
Education ministry sets up panel to strengthen assessment, accreditation of higher educational institutions

Most states agree to adopt RBI's fin literacy programme for schools: Official

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

4th BFSI & Fintech Conclave & Awards 2023 4th BFSI & Fintech Conclave & Awards 2023
Subscribe to our Newsletter
johnsmith@example.com

Recent News

Yes Bank appoints Pankaj Sharma as Chief Strategy and Transformation Officer

Yes Bank appoints Pankaj Sharma as Chief Strategy and Transformation Officer

September 26, 2023
DHA and IIM Raipur announce enrollment date for PG and diploma programmes in digital health

DHA and IIM Raipur announce enrollment date for PG and diploma programmes in digital health

September 26, 2023
Sumnesh Joshi to honour 4th BFSI & Fintech Conclave & Awards as Chief Guest

Sumnesh Joshi to honour 4th BFSI & Fintech Conclave & Awards as Chief Guest

September 26, 2023
Cashfree Payments and Shopify partner to introduce onsite payments for Indian merchants

Bharti AXA Life Insurance and PolicyBazaar launch Wealth Maximizer

September 25, 2023
B2B Infomedia

Be To Be Infomedia Pvt. Ltd. represents the inovative platfrom to the clients and widely recognised as one of the ponier networking platfrom with the team of young, creative, dynamic & dedicated professionals.

Quick Links

  • Home
  • About Us
  • Contact Us
  • Privacy Policy
  • Refund Policy
  • Terms and Conditions

All News

  • BFSI
  • Edtech
  • Education
  • Enterprise
  • Financial Inclusion
  • Fintech
  • Health
  • Interviews
  • Pharma
  • Startup
  • Technology
Subscribe to our Newsletter
johnsmith@example.com
  • About Us
  • Contact Us

© 2022 b2binfomedia - Designed & Maintain by hscreativehub.com.

No Result
View All Result
  • Home
  • About Us
  • Upcoming Events
  • Fintech
  • BFSI
  • Education
  • Technology
  • Startup
  • Enterprise
  • Pharma
  • Contact Us
  • Login
  • Sign Up

© 2022 b2binfomedia - Designed & Maintain by hscreativehub.com.

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In