Source Business standard
| >YOUR MONEY
Don't rush to demat your policy |
|
Of this number, accounts from metropolitan cities are about 45,000, when these are usually the higher contributor to the financial services sector, say experts. Ramanan says the main reason is lack of awareness. Policy holders from tier- I and tier- II cities have adopted e- insurance better than those in metros. Also, e- insurance is still optional, says P Nandgopal, managing director of IndiaFirst Life Insurance. Hence, not all offer it upfront. A policyholder has to ask if the facility is available; only then would he or she get it. "Opening a demat account is also cumbersome and you cant do it online," notes Nandgopal. To demat a physical policy, apolicy holder needs to fill a form, one per insurer. For instance, if someone owns policies of Life Insurance Corp, Reliance Life and Bajaj Allianz Life, he would need to fill one form for each conversion. Existing holders also need to undergo aKnow- Your- Customer ( KYC) formality once. For a KYC, you need a photograph, Permanent Account Number ( PAN) or aadhaar card and a cancelled cheque leaf for bank details. If you use a PAN, you need an additional proof of address. A new customer will need to approach a repository and open the demat account in a similar fashion. KYC is a big stopper for policy holders, feels the chief executive of a life insurance company. Plus, there is a small cost. Currently, policy holders can open e- insurance accounts free of charge. Also, insurers do not charge a fee for converting existing policies to demat form. For this, however, repositories charge around ₹ 100. These also charge ₹ 100 for account maintenance and up to ₹ 50 for servicing requests. This apart, though a policy holder can own only one demat account, insurance companies might not tie- up with all repositories. This means despite opening an account, you could still have to hold some physical policies if the insurance company and you dont tie- up with a common repository. " The original e- insurance guidelines in 2011 envisaged all insurers would tieup with all repositories. The 2013 guidelines gave insurers given the freedom to tie- up with one or more repositories. But in or after April 2014, we might see Irda asking insurers to t ieup with all repositories," explains Ramanan. "The initiative has not been promoted. Many are either unaware or unclear about it. Add the perception that life insurance companies only cheat. People are not ready to trust us," says the chief executive. Nandgopal feels maintaining aseparate demat account for insurance and stocks is also an issue. Additionally, till one system does not stand on its own, it might not make sense to erect another beside it. With the finance ministry proposing a single demat account for all financial assets, regulators need to come together and clear the hitches. NEHA PANDEY DEORAS It might be a cheaper option, but a lack of clarity is choking its growth
Source Business line BSE increases companies annual listing fee PTI
Mumbai, Feb 10: The Bombay Stock Exchange has increased its annual listing fee from the next financial year, with the hike being 29 per cent for the largest companies. Firms with a listed capital of ₹1,000 crore or more will have to pay at least ₹8.07 lakh as the annual listing fee compared with a minimum of ₹6.25 lakh currently, the exchange said. National Stock Exchange of India charges a minimum annual listing fee of ₹8.5 lakh for companies with a capital of more than ₹1,000 crore. The fee has been revised across segments and is effective from April 1, the BSE said in a circular. The initial listing fee remains unchanged at ₹20,000. The lowest fee of ₹1 lakh is for companies with a listed capital of up to ₹50 crore. The new fee for companies with ₹50-100 crore of capital has been set at ₹1.66 lakh. In the current financial year, the fee payable varied according to slabs and ranged from ₹15,000 for companies with a listed capital of ₹1-5 crore to ₹70,000 for those with a capital of ₹30-100 crore. Companies with a capital of ₹500 crore to ₹1,000 crore will have to pay ₹4.75 lakh, an increase of ₹1 lakh. For companies with a capital of over ₹1,000 crore, an additional fee of ₹3,515 would be applicable for every increase of ₹5 crore in capital. Firms in the ₹500-1,000 crore level will have to pay an additional ₹3,230 for every increase of ₹5 crore. The NSE levies an additional ₹3,700 for every increase of ₹5 crore in capital, according to information available on its Web site. The BSE said 75 per cent of the applicable fee would be charged in the case of debenture capital not convertible into equity shares. The NSE charges a fee of ₹ 5 lakh on firms with a debt capital of more than ₹500 crore, and an additional ₹3,400 for every increase of ₹5 crore. (This article was published on February 10, 2014) Keywords: BSE, BSE listing fee, Bombay Stock Exchange, NSE listing fee
|
--
This mail and its attachments (if any) are confidential information intended for persons to whom the email is planned for delivery by the sender. If you have received this mail in error please notify the sender of the error by forwarding the email and its attachments (if any) and then deleting the mail received in error and the relevant email trail in this connection without making any copies or taking any prints.
__._,_.___
No comments:
Post a Comment