The official auditing CAG has rapped the SEBI as well as IRDA for keeping their surplus funds worth over Rs 1,325 crore outside the government accounts in 2007-08. The practice by the two regulators are in contravention of the instructions issued by the Finance Ministry that all ministries and departments of the Government would ensure that funds of regulatory bodies are maintained in the Public Account, the Comptroller and Auditor General (CAG) said. SEBI and IRDA are retaining their surplus funds... aggregating to Rs 1,325.49 crore at the end of March 2008 outside the government account. This is in contravention of the instructions of the Ministry of Finance, CAG said in its report on the Union Government accounts 2007-08.
The report also said that Sebi has retained Rs 987.95 crore surplus fund, while the IRDA has kept Rs 337.54 crore outside the government accounts, the report said.
The CAG pulled up the two regulators saying that the surplus funds retention was not only a violation of the government's norm but also inconsistent with the Constitutional provisions. Both the regulatory bodies apart from flouting the constitutional and government norms, violated accounting procedure too, the report added. source: livemint.com
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