Indian Economy by Ramesh Singh – Chapter 14 | Financial Sector Reforms | Part 16 | UPSC Exams

Click here to Subscribe to complete UPSC CSE (Pre + Mains) Flagship Subscription The course is affordable and contains 2500+ videos in a structured manner & available at No-Cost EMI. The course consists of two modules i.e. GS Foundation & SIP (Success in Prelims)

Hello everyone and welcome to study iq english i’m joyce joy in this video we’ll be discussing about real estate and infrastructure investment rest we will also discuss about financial sector reforms or financial sector let’s get started now first coming to financial stability and development council that is the fsdc which is a very very important body so fsdc

Is an apex level body it was set up in 2010 december in line with g20 initiative which came in the wake of global financial crisis among the western economies which was triggered by 2007-8 subprime crisis of usa so first thing about fsdc is that it’s an apex body why it is in apex body because it is a body which consists of the representatives or we can say the

Heads of various financial regulators like the governor of rbi the director of sevi all the financial sector regulators uh the apex apex financial sector regulators and their representatives or their heads itself are members of fsdc that’s why it is a apex level body it was set up in 2010 december that is again very important because it’s a very recently started

Body now it is in line with g20 initiative again it’s important why because in the examination especially in upsc prelims exam and all day specifically ask you what was the background at which it was started so it was in line with the g20 initiative we know that g20 is a group of 20 countries so g20 initiative and why did such a trigger came up for starting fsdc

Why because this came in the wake of financial crisis among the western economies the western countries faced a financial crisis which was triggered by the subprime crisis of usa in in 2007 we know that the subprime crisis of usa this started with the accumulation of non-performing assets npa it started with the accumulation of npa especially from the subprime

Customers who are not that credit worthy prime customers are those customers who are very credit worthy so subprime customers in usa now coming to the objectives of fsdc to strengthen and institutionalize the mechanism for maintaining financial stability so to strengthen and to institutionalize the mechanism for maintaining financial stability that is the stability

In financial system second is enhance the interregulatory coordination this is a very important point why it is important to enhance india regulatory coordination we know that in a financial sector within a country there are many regulators like for example in case of banking system we have rbi in case of securities market we have the sebi we have iridae in case of

See also  Adsense / cloudflare anomaly, mortgage calculator, inflation example and book reading.

Insurance sector etc now see these are all different regulators so these are different regulators and it’s very important to enhance inter regulatory coordination that is coordination among themselves or between them between these various regulators between rbi sebi iridi etc to enhance interregulatory coordination third is to promote financial sector development

That is development of financial sector so these are the objectives the council is chaired by finance minister and has heads of financial sector regulatory authorities now the chairman of the council the chairman of financial stability development council is the finance minister and also the heads of financial sector regulatory authorities are the other members

The finance secretary or secretary of department of economic affairs secretary of department of financial services chief economic advisor these are all the members of the committee now financial sector assessment program the imf board decided in september 2010 to include 25 systemically important economies including india under the financial stability assessment

Program for members with systemically important financial sectors so the imf board again decided in 2010 that 25 systemically important economies should be included and india is one such systemically important economy under the fsap that is financial stability assessment program for members with systemically important financial sectors the joint imf world bank

Financial stability assessment program was conducted for india in january 2013 which assessed the indian financial system in relation to the highest international standards now the assessment recognizes that indian financial system remained largely stable on account of a sound regulatory and supervisory regime however the assessment identifies some gaps so we’ll

See what are the gaps or limitations international domestic and supervisory information sharing and cooperation consolidated supervision of financial conglomerates some limits on these your independence of the regulators these are the limits identified the fsap includes assessment of the status and implementation of various international standards and codes in

Regulation and supervision of institutions and markets financial infrastructure in terms of legal provisions liquidity management payment system corporate governance accounting and auditing transparency in monetary financial and fiscal policy data dissemination so this is the scope of fsap or we can say these are the areas that the fsap considers so fsap the

Financial sector assessment program considers or takes care of all these issues related to the financial sector next moving on to the financial action task force that is fata it is an intergovernmental policy making body fata is a very important topic so financial action tax task force it’s an inter-governmental policy making body inter-governmental means what

See also  Get Away From Housing Closing Costs! Tips For First Time Home Buyer Mistakes With Jennifer Beeston

Between governments which means the members of this organization is the governments of different countries itself governments of different countries it’s an intergovernmental policy making body that has ministerial mandate to establish international standards for combating money laundering and terrorist financing india joined fatah as its 34th member in 2010 so

India joined financial action task force in 2010 as its 34th member and at present there are 36 members which are 34 countries and two organizations european union and gulf cooperation council gcc and eu are the two organizations and apart from that there are 34 countries who are the members of fatah so this is regarding financial action task force or fatah next

We are moving on to real estate and infrastructure investment trust sebi firmed up regulations that will govern the real estate investment risk and the infrastructure investment trust the trusts have the objective of enabling the cash strapped real estate and infrastructure developers to have easy access to funds so it was sevi who firmed up the regulations to

Govern the real estate investment trust and infrastructure investment trust so this is important to remember that it is sebi the trust have the objective of enabling cash strapped real estate and infrastructure developers to have easy access to funds they create new investment avenue for institutions and high net worth individuals eventually ordinary investors

Now we’ll see what are the major provisions announced by the sebi for the reits reaches real estate investment trust to be close ended real estate investment schemes that will invest in property with the aim of providing returns to the unit holders so first one is to be close ended real estate investment schemes so close ended real estate investment schemes that

Will invest in property with the aim of providing returns to unit holders the returns will be derived mainly from rental income or capital gains from real estate so these are the two major sources of income it can be either rental income or capital gains from real estate third allowed to invest in commercial real estate assets either directly or through special

Purpose workers so it was allowed that they can invest in real estate assets either directly direct investment or through spvs or special purpose vehicles now to raise funds only through an initial public offering or initial offering and units of rates have to be mandatory listed on a stock exchange similar to initial public offering and listing for equity shares

See also  Mortgage Calculator in Excel

So the provisions were made very similar to issue of shares by a company ipo is the issue of shares for the very first time when a company issues the shares for the very first time it is ipo or initial public offer required to have assets worth at least 500 crore at the time of an initial offer and minimum issue size has to be 250 crore so required to have assets

Worth at least 500 crore at the time of initial offer that is when the entity makes the first offer of shares and minimum issue size should be 250 crore this is regarding the minimum requirement they’ll be able to raise money through follow-on offers rights issues qualified institutional placements and trading load for such units will be one lakh these are the

Different forms or different sources through which uh or different methodologies that they can use to raise the finance follow-on offers what is fpo or follow-on offers uh follow-on offers means ipo we have to understand ipo first itu is initial public offer an initial offer initial offer is when the company is issuing the shares for the very first time this is

Ipo now after the issue for the very first time again further if the company wants to issue the shares it is called as fb or follow on public offer fall on public offers after ipo or successively after ipo it is called as fbo rights issue rights issue means the rights of the existing shareholders to buy the shares qualified institutional placements that is q i f

Qfi or qualified institutional placement and trading load for such units will be 1 lakh sebi also announced the launch of inves which are somewhat similar to reads now see what does reach reaches real estate investment risk invest in which is infrastructure investment trust similarly for or similar to rates sebi also announced the launch of its infrastructure

Investment trust however an initial offer will not be mandatory for inmates through listing which which will be mandatory for both publicly and privately issued in which so that’s it about the real estate sector and also about the financial sector we’ll meet again in the next video thank you so much for watching

Transcribed from video
Indian Economy by Ramesh Singh – Chapter 14 | Financial Sector Reforms | Part 16 | UPSC Exams By Study IQ EnglishliveBroadcastDetails{isLiveNowfalsestartTimestamp2022-06-25T054512+0000endTimestamp2022-06-25T060006+0000}