Government invites comments on FSLRC from stakeholders by July 15

NEW DELHI: The government today said it has invited comments by mid-July from all stakeholders on the two-volume report of the Financial Sector Legislative Reforms Commission (FSLRC), which was headed by former Justice B N Srikrishna.

"All stakeholders concerned are requested to forward comments or suggestions that they may wish to submit on the report and its various recommendations by July 15, 2013," an official statement said.

Former Finance Minister Pranab Mukherjee had announced the setting-up of the FSLRC during his Budget speech of 2011-2012.

The Commission presented its report to the government March 22, 2013. It has suggested that financial sector regulators such as Sebi as well as Irda be merged into a Unified Financial Agency (UFA) and the role of RBI be restricted to regulating banks and managing monetary policy.

Under the proposed regulatory architecture by the Commission, Securities and Exchange Board of India (Sebi), Forward Markets Commission (FMC), Insurance Regulatory and Development Authority (Irda) and Pension Fund Regulatory and Development Authority (PFRDA) would be merged into a UFA.

The Commission had proposed setting up of seven agencies -- RBI, UFA, Financial Sector Appellate Tribunal (FSAT), FSDC, Resolution Corporation, Financial Redressal Agency and Public Debt Management Agency --- for managing the financial sector.

It had also suggested that Financial Sector Development Council (FSDC) be given statutory framework.

The panel had also suggested setting up of a new Debt Management Office (DMO) and subsuming the existing Deposit Insurance and Credit Guarantee Corporation of India (DICGC) into the Resolution Corporation.