It's time for next wave of financial sector reforms: Pranab Mukherjee

Finance minister Pranab Mukherjee today called for the next wave of reforms in the financial sector in tune with the changing needs.

"Many financial sector norms are decades old and some are even 50 years old. It is high time that we made some changes in the kind of products and regulatory frameworks for effective financial sector norms to be in tune with the dynamic needs of the markets," Mukherjee said.

"There is, therefore, a need to clear the cobweb generated over the decades to provide firm foundation to usher in a new wave of financial sector reforms," he told the annual convention of the Association for National Exchanges Members of India here.

The finance minister said markets are complex and require more transparency to reduce systematic risks and need to be integrated in the multi-regulatory regime for financial stability. In this direction, the minister said, the government has decided to set up an apex level financial stability and development council to monitor macro-level prudential supervision of the economy, including functioning of large financial conglomerates, and address regulatory coordination issues.

Mukherjee clarified that he has no interest to dilute the powers of the existing regulators which are doing a good job in the current scenario. But the minister said they need to do more to protect the investors.