FM meets financial sector regulators ahead of Budget

NEW DELHI: Finance Minister P Chidambaram today discussed the issues concerning regulatory environment and deliberated on steps which could be taken in the Budget in a meeting with financial sector regulators.

"We gave suggestions for Budget from our respective point of view," RBI Governor Duvvuri Subbarao told reporters after the meeting here.

The high-level FSDC (Financial Stability and Development Council), which is chaired by the Finance Minister and comprises heads of RBI, Sebi, IRDA and PFRDA, coordinates the working of regulators and looks at economic and financial issues.

The meeting reviewed the initiatives taken by the RBI and Sebi for strengthening corporate bond market with a view to help India Inc raise long-term funds in a cost-effective manner, sources told PTI.

Though India has a very advanced G-sec ( government securities) market, corporate bond market is relatively under-developed.

Besides, issues like slowing growth, persistent inflationary pressures, rising gold imports and growing fiscal and current account deficits were also discussed.

The financial sector regulators who attended the meeting include Reserve Bank Governor Duvvuri Subbarao, Pension Fund and Regulatory Development Authority (PFRDA) Chairman Yogesh Aggarwal, Insurance Regulatory and Development Authority (IRDA) Chairman J Harinarayan and secretaries in the Finance Ministry.

Chidambaram will present the Budget proposals for 2013-14 in the Lok Sabha on February 28.