The Union Govt may introduce draft Financial Code in winter session of Parliament
The Union Government will be seeking its approval
for the proposed Indian Financial Code in the coming winter session of the
It would replace 60-odd archaic laws to herald a regime of
principle-based, as opposed to sector-specificregulation.
It became one of the biggest generational shake-up in the
The draft Code is now being finetuned on the basis of
comments of stakeholders and would be put up again in the public domain around
mid-2015 before the final version is placed before the Parliament in
The Financial Sector Legislative Reforms Commission (FSLRC)
chaired by Justice BN Srikrishna was set up in March 2011.
Its aim was to rewrite the financial sector laws to
harmonise them with the new requirements.
The report was submitted to the finance ministry in March
It has recommended revamping the legislative framework of
the financial sector regulatory architecture, restructuring of existing
regulatory bodies and creating new agencies wherever required.
It also made a slew of non-legislative recommendations to
enhance consumer protection and greater transparency in the functioning of
financial sector regulators.
The proposed shifting of the government bond market to Sebi
and setting up of PDMA to manage government debt has created some discomfort
for the RBI.
The draft Code seeks to move away from the current
sector-wise regulation to a system where the RBI would deal with monetary
policy and regulate banking and payment system while a Unified Financial Agency
subsumes existing regulators - SEBI, IRDA, PFRDA and FMC - to regulate the rest
of the financial markets.
Along with the proposed implementation of the uniform Goods
and Sevices Tax from April next year.
India came in 142 in World Bank’s latest ease of doing
business ranking of 189 countries.
Move to replace archaic laws -Action taken by the government
on FSLRC recommendations
The draft Indian Financial Code finetuned, likely in the
winter session of Parliament
A task force set up to upgrade existing Securities
Tribunal to the Financial Sector Appellate Tribunal
Task forces set up to establish new agencies such as
Resolution Corporation,Public Debt
Management Agency and Financial Data Management Centre
A task force will be formed in April to help set up
sector-neutral Financial Redressal Agency
Amendments to RBI Act proposed in the Finance Bill to set