Millennium Post

Centre to consult all stakeholders on financial reforms panel proposals

Describing the recommendations of Financial Sector Legislative Reforms Commission (FSLRC) as far reaching in nature, a top Finance Ministry official on Friday said that the government will take final decision on it after consulting all stakeholders.

'We believe recommendations of FSLRC are far reaching in nature. We are examining the report. We cannot take decision on it in haste, we would like to get flavor of what everyone thinks about it,' Economic Affairs Secretary Arvind Mayaram said at an event.

Former Finance Minister Pranab Mukherjee had announced the setting-up of the FSLRC during his Budget speech of 2011-2012.The commission, headed by former Justice B N Srikrishna, presented its report to the government on 22 March, 2013. It had suggested merging of financial sector regulators such as Sebi and Irda into a Unified Financial Agency (UFA) and the role of RBI be restricted to regulating banks and managing monetary policy.

Under the architecture proposed by the panel, Securities and Exchange Board of India (Sebi), Forward Markets Commission (FMC), Insurance Regulatory and Development Authority (Irda) and Pension Fund Regulatory and Development Authority (PFRDA) should be merged into a UFA.
The commission had proposed setting up of seven agencies — RBI, UFA, Financial Sector Appellate Tribunal (FSAT), FSDC, Resolution Corporation, Financial Redressal Agency and Public Debt Management Agency — for managing the financial sector.

It had also suggested that Financial Sector Development Council (FSDC) be given statutory framework.  The panel had recommended setting up of a new Debt Management Office (DMO) and subsuming the existing Deposit Insurance and Credit Guarantee Corporation of India (DICGC) into the Resolution Corporation.
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