Do insurance companies afford two regulators on their head, and the benefit to the investors of the same?

We have seen some developments in past weekend for ULIP (unit linked insurance plans), firstly SEBI has ordered 14 life insurers to stop issuing the new ULIP product but it’s not the sudden development. SEBI is thinking on the same for past some years. Now the question is will two regulators are allowed to regulate one industry by government.
When we talk for SEBI concern, they are saying the ULIP has a big component of mutual fund so they must regulate that for any irregularity, now the question is what SEBI wants to do “ will they do the same with insurance what they have done with mutual fund” means no advisory fees for insurance. But is the consumer get security with SEBI governing OR regulating Insurance industry, unfortunately not because if SEBI has that much caliber to save investors interest they may have done in the satyam case and other big market frauds in past like IT bubble.
So we can say it will not help the customers as far as the security is concerned, lets come to return for customer, what SEBI has done in Mutual Funds is they have restricted companies to charge any kind of advisory fees but if the same has been done with ULIPS how can the insurers and brokers will give expert advice to customer free of cost.
We can conclude that leave the insurance regulations for IRDA, the commission structure and charges will come in equilibrium as and when the industry mature i.e 1 to 2 years.

Inflation: Who are the soft targets and how it is handled by Government.

I can’t find myself in a good mood when writing on inflation because it’s really now started to hit me personally as well, the middle class person is the soft target for the inflation today.

Do we really know what kind of inflation we are facing this year, the inflation is only led by food prices and what RBI wants to do is rising the interest rates, I am really clueless??? How can central bank control food inflation by increasing bank rates and adjusting other monetary policies?

I just want to explain how the measures taken by RBI will only worsen the effect on general public, now we are facing food inflation and government all around India I.e. Delhi is increasing the taxes (on the name of Commonwealth games and developments), Government in center has increased the Fuel price which again has increased the price of each and every thing, and now RBI has increased the bank rate it means the interest on loans will be more, so you already have less money now central bank makes it even lesser and due to this the credit for private sector will be higher so they will not think of much growth projects, it directly impacts general public working with private company will get lesser appraisals.

It means you have to pay more for each and everything and will get less growth in your income, it means the expenses are increasing by 100% and income is increasing with mere 10%. A common man is pressed by government from both sides.

So Called Stimulus Package...

we have seen the bad effects of global slowdown and Rising Inflation in in recent past, Now government is claiming that they will withdraw the Stimulus given to indian industry. i dont think any stimulus is given rather i have a point that in the bad times government has mismanaged the rising inflation and due to this we have seen such a bad phase in recent past.

How the RBI has managed the Inflation has put a question mark on their Expertise, it seems like someone has told them that they want inflation figure below 8, this is just a number and if RBI want they can easly make the inflafion No. whatever they want because they have liquidity in their control, and surprisenglly what the RBI has done is the most easy way to get inflation down, they have increased the CRR(cash reserve ratio) and SLR(Sttutory Liquidity Ratio) this leads to rise in interest rate and directly hits the growth projects of Indian industry which is already get hit by global slowdown. In reaction the indian industry have stopped the growth projests and started reducing the manpower they have hired because of growth in their mind.

Do you think this type of exactly rubbish moves are so called stimulus Package, I Dont.

Global Meltdown- Subprime Crisis.

There is a Interesting topic now a days almost all people are discussing and because it has affected our life to some extent all people made certain assumption about it , the topic is not other then Global recession, i just want to share my views on the same.

Global Meltdown- Subprime Crisis.

The global financial system have divided the masses as per there financial status and there previous behaviour in repaying any type of credit

as Prime borrower and sub prime borrower, the prime borrower have better financial status and good record of repaying any credit then subprime

borrower. The Global banks started giving Loans to sub prime customers on higher rate to take more revenue on security of the property That is

Real estate(house), because of more Real property and less demand in global market the property prices dips down and suprime borrowers started

Defaulting the loan and banks started selling the property this again increases the demand and pushes the price down further ,

Because of that there are more defaults of loan occurs.

banks are not the only financial institution which lost money in this situation becuse they already have sold some part of it to investment bankers

and they also have taken insurance on the loan, that's why it affected the whole financial institution all over the globe, Thanks to RBI(Reserve bank

of India) conservative and extreme regulations that has restricted our Nationalised banks to invest in that global securities, otherwise our position is

also like American and British financial system.

We have not get hurt as America, but yes we have also affected to some extent because of less demand of software from global financial market.

Foreign Institutional investors have also take there money out from our market only because they dont have funds to run there organisation not

because of any fundamental reason, this all phenomena has let to meltdown of stock market of india from 21000 to 7000(BSE SENSEX), this

has affected Mutual fund houses and insurance sector most.

Believe me now the market is reviving, and i find myself fortunate that i have seen such a condition and have seen persons making good money

By investing systematically, its really a lifetime experience for any person who is in financial market.