The Financial Sector Legislative Reforms Commission (FSLRC) headed by Justice (retd) Mr. B.N.Srikrishna handed over its final report to Finance Minister P. Chidambaram at North Block recently.
Accepting the report from Mr. Srikrishna, Mr. Chidambaram said he would on recently discuss the report with the Prime Minister Mr. Manmohan Singh.
Mr. Chidambaram also said the FSLRC report would be put in the public domain in the next week.
Broadly, in line with its approach paper, FSLRC has recommended that regulatory bodies such as SEBI, the Forward Markets Commission (FMC), the Insurance Regulatory and Development Authority (IRDA) and Securities Appellate Tribunal (SAT), Pension Fund Regulatory and Development Authority (PFRDA), Foreign Investment Promotion Board should be subsumed into a new unified regulatory agency.
There is, however, an exception to this recommendation in the sense that the Reserve Bank of India (RBI) should not be brought under the 'unified regulator' until enough experience has been gained.
Mr. Srikrishna later told Business Line that the report does recommend that in the long run even the RBI should be brought within the ambit of the unified regulatory agency.
When the unified regulator, to be called the Unified Financial Agency (UFA)
Asked how the final report was different from the approach paper, Mr. D. Swarup, FSLRC Member, said the final report has 2 additional elements - it has delved into capital controls and also suggested setting up of a resolution corporation.
In all, about 60 legislations governing the financial sector were taken up for deliberation by the commission during its 2 year term.
The final report has recommended that most of the laws (except those relating to Government such as PPF, savings, etc) should be repealed, sources said.
If the Government were to accept the report in entirety, it may lead to repeal of several crucial legislations such as the SEBI Act, IRDA Act & LIC Act, it was pointed out.
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