Current Affairs

SEBI opposed Transferring Surplus Money to CFI

Current context: SEBI has refused to transfer its surplus funds to the Consolidated Fund of India (CFI)
SEBI opposed Transferring Surplus Money to CFI
  • The Finance Minister proposed an amendment to the SEBI Act in the budget 2019-20 which will transfer 75% SEBI’s surplus funds to the central government
  • SEBI chairman Ajay Tyagi has asked to review the proposal of transfer of surplus funds as it will compromise the autonomy of SEBI and its functioning
  • Two provisions as presented in the finance bill were opposed by SEBI- the First one is related to the transfer of surplus funds and second one seeking prior approval from finance ministry for raising expenses
  • The finance bill allows 75% cash transfer from SEBI’s general fund to the Consolidated Fund of India (CFI), after creating a ‘reserve fund’ (25%)of the annual surplus
  • Department of Economic Affairs’ (DEA's) has made this provision in the view that funds received by SEBI are public money and all public money is collected on behalf of the government should be put in the public account

Question: 

Q.1 The Budget 2019-20 has proposed to transfer___% of SEBI’s surplus funds to the government?
a. 20%
b. 60%
c. 25%
d. 75%
SEBI opposed Transferring Surplus Money to CFI SEBI opposed Transferring Surplus Money to CFI Reviewed by Neha on July 19, 2019 Rating: 5

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