mint

Financial sector regulators to finalize action plan for FSLRC

Finance minister P. Chidambaram. Photo: Mint

New Delhi: Finance minister P. Chidambaram has asked financial sector regulators to use the time available till the US Federal Reserve starts reducing its bond-buying programme to address economic imbalances so that any adverse impact on the Indian economy could be avoided.

In September, the US Fed refrained from reducing the $85 billion pace of monthly bond-buying, saying it needs more evidence of lasting improvement in the economy and warning that an increase in interest rates threatened to curb the expansion.

The Financial Stability and Development Council (FSDC) chaired by the finance minister met on Thursday and also deliberated on the implementation of the recommendations of the Financial Sector Legislative Reforms Commission (FSLRC) and the steps to be taken by regulators.

The meeting attended by all financial sector regulators, including Forward Market Commission chairman Ramesh Abhishek and finance ministry officials.

The council decided that all the financial sector regulators, including FMC, will finalize an action plan for implementation of all the FSLRC principles relating to regulatory governance, transparency and improved operational efficiency that do not require legislative action.

“As regards to legislative recommendations, it was decided to analyse the public comments and feedback to further fine-tune the draft Indian financial code. It was also decided that action should be taken for finalizing the road map for creation of new institutions such as Resolution Corporation, Public Debt Management Agency, Financial Sector Appellate Tribunal and Financial Data Management Centre,” the finance ministry said in a statement.

Amit kumar pandey

pgdm  1st