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| Sebi which functions as a regulator of the stock markets also has powers to levy penalties and provide adjudication for contravention or failure to follow the regulations. |
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| Penalties are adjudicated by adjudicating officers, who are appointed from amongst the officers of Sebi not below the rank of a division chief. |
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| These officers can hold an inquiry and after providing for reasonable opportunity of being heard, impose a penalty. |
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| In line with the Sebi model, the law Commission has proposed establishment of a three -member Grievance Redressal Authority (GRA) in major cities where complaints of policy holders and consumers against the insurers will be heard. |
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| The GRA like Sebi, will be presided over a by a sitting or a retired district judge and in addition will consist of two members who have expertise in the field of insurance. |
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| Further, on similar lines as the Sebi Act, the Commission proposed for adjudication in matters involving contravention of the Act, Rules and Regulations made by the IRDA. |
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| The Commission also proposed that penalties be levied after an adjudication or inquiry by adjudicating officers on the pattern of the Sebi Act. |
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| These adjudicating officers will be appointed from amongst the officers of the IRDA above a certain level like the Adjudicating Officers of the Sebi. |
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| Just as Sebi orders can be challenged at the Securities Appellate Tribunal (SAT), orders of GRAs can also be appealed at the Insurance Appellate Tribunal (IAT). |
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| SAT is presided by a sitting or a retired Judge of the Supreme Court or a sitting or a retired Chief Justice of a High Court. |
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| Other members of SAT are persons with expertise in securities market and have qualifications and experience in legal and corporate fields. |
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