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| Edited By: Megha Mandavia |Source: DNA |Updated: Mar 19, 2018, 02:38 AM IST
The 10-member Financial Sector Legislative Reforms Commission (FSLRC), led by Justice B N Srikrishna, has proposed to have as many as seven regulatory agencies to oversee the sector, putting the idea of a super regulator on the back burner for now.
The Securities and Exchange Board of India, the Forward Markets Commission, the Insurance Regulatory and Development Authority and the Pension Fund Regulatory and Development Authority should be merged into one unified agency, the panel has proposed in its report, submitted to the government on March 22 but made public only on Thursday.
The Reserve Bank of India (RBI) would remain a separate agency, but will no longer oversee debt management, non-banking financial companies that do not accept deposits from public, the panel has proposed.
The other five agencies would oversee appeals against the regulatory bodies, complaint redressal, debt management and systemic risk and provisions on resolution of financial firms.
After 5-10 years, the seven agencies could be combined into one super agency or move to a two-agency structure with one consumer protection agency and other prudential regulatory agency, the panel said.
The FSLRC also submitted a draft Indian Financial Code Bill on Thursday, which would replace several different financial sector laws. Among other things, the Bill allows the government to modify the annual public debt plan any time during the year.
The seven samurai
RBI: Monetary policy, regulation and supervision of banking in enforcing the proposed consumer protection and micro-prudential law
Unified Financial Agency: Implement consumer protection law and micro-prudential law for all financial firms other than banking and payments. Also take over work on organised financial trading from RBI in the area of bond-currency-derivatives nexus, and from FMC for commodity futures
Financial Sector Appellate Tribunal: To subsume Securities Appellate Tribunal; hear appeals against RBI, Unified Financial Agency, etc
Resolution Corporation: To subsume Deposit Insurance and Credit Guarantee Corporation; work across the financial system
Financial Redressal Agency: Implement this financial regulatory architecture. One-stop shop where consumers can carry complaints against all financial firms
Public Debt Management Agency: Independent debt management office
Financial Stability and Development Council: Systemic risk and development
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