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THE JASMINE REVOLUTION — Part – I

At times, few events, though not very often noticed, normally not even thought worth being covered by national media, but when the acts happen to be of SUPREME SACRIFICE or same order, change course of not alone history but geography too. The attempt is not to dub an act of self immolation as an act of bravery, and normally hundreds of cases of self immolation and attempts of self immolation get reported in media every year, besides lot many which even fail to find space in news media in nearly all the corners of the world which without fuelling in a minor change in governance.

The name “Mohamed Bouazizi” is not a famous or well known name even today, and thus indirectly gives an impression that history in due course of time may even forget to contain any record of this name for reference of future generations. The act of self immolation by this Tunisian Street Vendor to protest against the corruption is an apt example of helplessness being faced by common men, irrespective of him being a citizen, subject, at mercy of any dictator, fascist or Junta or probably any other form of Structure of Governance.

Strange are ways things are destined, much beyond human vision and imagination, it seems if  21st Century were a Century of Convergence of Scale for nearly every sphere of human related activities. A Century standing witness to Convergence of Communication Technology and Tools, Convergence of Economies of Nations, Convergence of Trade, Convergence of Financial Governance, and perhaps even Convergence of Revolutions against Governance Structures across various nations and probably the list continue…s, neither can it be covered in this deliberation nor will it be attempted.

Till a couple of months back, the individual of the day was busy in himself thinking that all the problems could happen and will happen with others only, aptly defined selfish by Adam Smith and the league, was thinking of governance all around the globe being cool, calm and pleasant except the places messed up by United States of America. Perhaps still the individuals will remain individuals and will rarely form a society or nation; as people aware of history know very well that even the phenomenon or concept of nation is a gift of as recent as nineteenth century.

Connecting back, it was morning of December 17, 2010 when Mohamed Bouazizi, a 26 years old street vendor of Tunisia immolated himself protesting against corruption, an event of the magnitude often not even noticed by world media, the Arab World has not remained the same as it was till hours before of this act on the same day. It has left whole geo-political area simmering and inhabitants rumbling.  It has initiated a chain reaction.

The chain reaction, that has already made twenty three years old rule of Zine El Abidine Ben Ali, (in power since 1987) now a chapter in history of Tunisia. It did not stop here itself. It perhaps turned a torchbearer for other nations of geopolitical area often called as Gulf (British call it as Middle East), or as the author calls it, the Middle West. It did not stop at Tunisia. The next link in chain turned out to be Egypt. In Egypt, the war hero of Egypt Israel War of 1973 that made Egypt a power centre in Middle West and one time air force officer Hosni Mubarak was shown door after his thirty year rule. To world it may look a silent transition made success by people of Egypt but sources say that at least 300 people lost their life and another 3000 suffered injuries. Reality about real causalities is not known due to initial crack down on media and still no real transition to any new form of governance taking place. It is probably still another Hosni Mubarak just individual may differ, as no real transition to any form of governance has taken place, but junta in control.

“The phenomenon being deliberated, as on date, has come to be known as SIDI BOUZID REVOLT in Arab World and as JASMINE REVOLUTION elsewhere.”

Similar turmoil, protests against governments in place, in numerous other nations of gulf is being seen and also the ruthlessness and lack of human emotions with which they are being suppressed and retaliated by various governments in place. It is the same story today in Algeria, Bahrain, Jordan, Libya and Yemen.

Always Yours — As Usual — Saurabh Singh

New World Order Imminent!- Anyone For A Game Of Ping Pong?

This vedio has been uploaded for my learned audiences, fans, students and scholars and rest others, who wish to understand issue of New World Order. I would top up the same by a commentry on Asian Environment Soon. Hope you find some value in it.Always Your—– As Usual — Saurabh Singh

Vodpod videos no longer available.

 

Barak Obama and Economic Crisis

Vodpod videos no longer available.

 

War amongst two Organs of same Body: Did Somebody Say Cannibalization: Is it Suicidal?

Market regulator SEBI has barred 14 private life insurance companies from selling unit-linked insurance plans without its approval, giving a fresh twist to the turf war between SEBI and insurance watchdog IRDA.

“We expect some companies to move the court” said the CEO of a life company. “It is unfortunate that this dispute has been allowed to reach this stage. It is time for the finance ministry to intervene” he added.

In an order signed by Prashant Sharn, wholetime director, SEBI, said, “I hereby direct the entities mentioned in this order not to issue any offer document, advertisement, brochure soliciting money from investors or raise money from investors by way of new and/or additional subscription for any product (including ULIPSs) having an investment component in the nature of mutual funds, till they obtain the requisite certificate of registration from SEBI.”

The 14 companies mentioned in this order include Aegon Religare, Aviva, Bajaj Allianz Life Insurance, Bharti AXA, Birla Sun Life, HDFC Standard Life, ICICI Prudential, ING Vyasa Life, Kotak Mahindra Old Mutual Life, Max New York Life, Metlife India, Reliance Life, SBI Life, TATA AIG Life.

A few months back, SEBI had questioned individual life companies why they were selling investment products without its approval. Companies had responded individually that insurance laws permit them to offer an investment component within a life insurance policy. They also said that they were regulated by SEBI who had cleared all these products. The life companies were supported by the market regulator, who reiterated the stand taken by life companies.

In its final order SEBI said, “I find that the entities by their own admission have stated that there are two components of ULIPSs – an insurance component where the risk on the life insurance portion vests with the insurer and the investment component where the risk lies with the investor. This establishes conclusively that ULIPSs are a combination product and the investment component need to be registered with and regulated by SEBI”

SEBI’s order has implications not only for the life insurance companies but also for their promoters who have sunk in over Rs 26,000 crore in the form paid up capital. According to analyst reports, a significant portion of the value of various companies including, ICICI Bank, Aditya Birla Nuvo, SBI Life and Bajaj Fin serve. Most of the business written by these companies is through ULIPSs. If these companies are barred from selling ULIPSs, their valuations are likely to be hit.

Atul Surana , Certified Financial Planner and MD of Catalyst Financial Planning, says, “Anybody will understand one clear partial stand of SEBI which has not included LIC’s name in the list of life insurance companies selling ULIPSs. Secondly, this sounds much like a war between IRDA and SEBI who are bent on proving their authorities. These two regulators could have sorted out the issue on regulatory process first and then issued the order!”

So far as the order’s negative implications are concerned, experts say that while they broadly agree with the concerns of the regulator, it is also important to look at some possible negative implications of this move.

For instance, this process of another regulatory approval might take away the sheen from these products. Insurance companies may not be inclined.  The Securities and Exchange Board of India’s latest order on ULIPSs is expected to have far-reaching implications for the concerned life insurance companies as well as investors. SEBI has issued a directive to all private life insurance companies not to issue any offer document or advertisement soliciting money from investors for a ULIPS or any product having an investment part in the nature of mutual funds, till they approve of the same.

This directive is the latest in a series of initiatives taken by the market regulator to put an end to all unfair market practices and make the process of investments simple, fair and cost efficient for an investor. While the immediate fallout will be negative for all the 14 private life insurance companies as ULIPSs form a major part of the new business written by these companies in the recent past, yet some financial experts feel that this is a welcome step as it puts an end to the unfair practice of pushing life insurance policies as investment products to gullible investors.

“In the current market practice investors end up paying very high charges for the investment part of these policies and are usually not aware of the expenses they are paying. This is because unlike a normal share or mutual fund investment there are usually a myriad of charges in a ULIPS product hidden behind numerous provisions and clauses which are sometimes not easy to comprehend even by insurance professionals,” says Ashish Kapur, CEO, Invest Shoppe India Ltd, adding, “hence common investors have very little chance of ever getting an accurate picture of the costs they are incurring on these insurance and investment combination products.”

Still all is not well with the SEBI order as it is believed to have some partiality besides having some negative implications to offer these products if the regulations are very tough and costly to comply with.

FRIENDLY FIRE: EXPECTED NUMBER OF CASUALTIES

SEBI’s order asking 14 insurance companies to stop selling unit-linked insurance plans has turned into full-fledged regulatory battle with the Insurance Regulatory and Development Authority issuing its own order directing the 14 companies to continue selling ULIPSs.

“After due consultation with the members of the consultative committee all the 14 insurance companies which are mentioned in the order of SEBI are directed to note that notwithstanding the said order of the SEBI, they shall continue to carry out insurance business as usual including offering, marketing and servicing ULIPSs in accordance with the Insurance Act 1938” IRDA said in a late evening order on Saturday signed by chairman J Harinarayan.

In the order IRDA observed that SEBI’s order would upset financial stability, jeorpardise policy holders interest and was prejudicial to the interest of insurers. The 14 companies mentioned in this order include; Aegon Religare, Aviva, Bajaj Allianz Life Insurance, Bharti AXA, Birla Sun Life, HDFC Standard Life, ICICI Prudential, ING Vyasa Life, Kotak Mahindra Old Mutual Life, Max New York Life, Metlife India, Reliance Life, SBI Life, TATA AIG Life.

“The IRDA Act `99 is specifically enacted to provide for an authority to protect the interests of holders of insurance policies, to regulate, promote and ensure the orderly growth of the insurance industry” IRDA said. The insurance industry was greatly relieved by IRDA’s order. “It is now between the regulators who have to settle this among themselves” said a senior industry official.

SEBI’s order has more far reaching implications than a press release or a circular. Since the order has been issued under Section 34(i) (a) and (b) of the insurance Act. IRDA has said that in the year `08-09 ULIPS policies involving a total premium of Rs 90,645 cr were in force. In fiscal `09-10 upto February 16.7 lakh policies have been sold with a premium of Rs 44,611crores. “It is also observed that the 14 insurance companies have an equity capital of Rs 16,281cr as on March 2009” IRDA said.

The insurance regulator said that observance of SEBI’s order would cause the stoppage of all renewals of insurance policies already invested by the insuring public may result in forced premature surrender of insurance policies causing substantial loss to the policyholders and to the insurers. “The effective stoppage of the sale of the products would cause a complete drying up of revenue flows to the insurance companies which could disrupt the payment of benefits on maturity, on death and on other admissible claims, putting the policyholder and the general public to irreparable financial loss. The financial position of the insurers will be seriously jeopardized thus destabilizing the market and upsetting financial stability” IRDA said.

IRDA IS FIRST TO BLOW CONCH – DIN’T YOU HEAR THE WAR CRY

SEBI’s order asking 14 insurance companies to stop selling unit-linked insurance plans has turned into full-fledged regulatory battle with the Insurance Regulatory and Development Authority issuing its own order directing the 14 companies to continue selling ULIPSs.

“After due consultation with the members of the consultative committee all the 14 insurance companies which are mentioned in the order of SEBI are directed to note that notwithstanding the said order of the SEBI, they shall continue to carry out insurance business as usual including offering, marketing and servicing ULIPSs in accordance with the Insurance Act 1938” IRDA said in a late evening order on Saturday signed by chairman J Harinarayan.

In the order IRDA observed that SEBI’s order would upset financial stability, jeorpardise policy holders interest and was prejudicial to the interest of insurers. The 14 companies mentioned in this order include; Aegon Religare, Aviva, Bajaj Allianz Life Insurance, Bharti AXA, Birla Sun Life, HDFC Standard Life, ICICI Prudential, ING Vyasa Life, Kotak Mahindra Old Mutual Life, Max New York Life, Metlife India, Reliance Life, SBI Life, TATA AIG Life.


“The IRDA Act `99 is specifically enacted to provide for an authority to protect the interests of holders of insurance policies, to regulate, promote and ensure the orderly growth of the insurance industry” IRDA said. The insurance industry was greatly relieved by IRDA’s order. “It is now between the regulators who have to settle this among themselves” said a senior industry official.

SEBI’s order has more far reaching implications than a press release or a circular. Since the order has been issued under Section 34(i) (a) and (b) of the insurance Act. IRDA has said that in the year `08-09 ULIPS policies involving a total premium of Rs 90,645 cr were in force. In fiscal `09-10 up to February 16.7 lakh policies have been sold with a premium of Rs 44,611crores. “It is also observed that the 14 insurance companies have an equity capital of Rs 16,281cr as on March 2009” IRDA said.

The insurance regulator said that observance of SEBI’s order would cause the stoppage of all renewals of insurance policies already invested by the insuring public may result in forced premature surrender of insurance policies causing substantial loss to the policyholders and to the insurers. “The effective stoppage of the sale of the products would cause a complete drying up of revenue flows to the insurance companies which could disrupt the payment of benefits on maturity, on death and on other admissible claims, putting the policyholder and the general public to irreparable financial loss. The financial position of the insurers will be seriously jeopardized thus destabilizing the market and upsetting financial stability” IRDA said.

POLICE DECIDES TO TURN SPECTOR

The finance ministry today kept a safe distance from the ongoing row between market regulator SEBI and insurance watchdog IRDA over ULIPs, saying the two regulators have to resolve the issue.

“It’s a matter between regulators; so they have to decide,” finance secretary Ashok Chawla told when sought his comments on yesterday’s SEBI decision to ban 14 life insurers from raising any more money from the unit-linked insurance plans (ULIPs) in which a portion of the premium amount is invested in stock markets, a move opposed by the insurance regulator.

The SEBI decision was taken after the market regulator had sent notices to these companies asking them as to explain why they did not take its permission to launch these schemes.

Insurance regulator IRDA is understood to have stated in its reply that regulation of ULIPs by IRDA is well-laid down and that it does not agree with SEBI contention that insurers need a certificate of registration from the market regulator for dealing in ULIPs.

The issue was also taken up at the meeting of the inter-regulatory body, the High Level Coordination Committee (HLCC). It was decided at the meeting that the two regulators should settle the issue between themselves.

Chawla said the SEBI and IRDA have not so far been able to come to any resolution. “So, SEBI has taken a legal process. He was going to be silent spectator to see the fire power of both Regulators.

 

Always Yours   — As Usual — Saurabh Singh, India

[Thanks are expressed for too many peple]

Cover Page of New Book Authored

My audiences would probably be happy to have a look on the  ‘Cover Page’ of Book Titled “Stock Market Returns of Three Asian Giants: India, China & Japan” with Sub- Title ‘Interplay of Macro Economic Forces’. The book has been authored by the blogger and another colleague of his from the academic fraternity.

As emerging new global order was very much visible from 2000 onwards, thus the ground work for this publication was completed in Year 2005 itself and the same got recorded in University Database. Due to the rush and crowd available with major publishers, the first research paper in print is expected within a couple of months.

Probably the duration of work being completed in year 2005 will be claimed with support of University Database.

Cover Page Picture of Book Titled Stock Market Returns of Three Asian Giants : India China & Japan

Cover Page of Book Titled "Stock Market Returns of Three Asian Giants : India China & Japan"

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