Government may give nod to unified financial agency

NEW DELHI: In wide-ranging changes to the way financial sector functions and is regulated, the government may soon lay out a road map for implementation of certain recommendations made by a high-level panel FSLRC, including for the creation of Unified Financial Agency.

However, many provisions suggested by the Financial Sector Legislative Reforms Commission (FSLRC) may be watered down, including for the matters where appeals can be filed with the unified Financial Sector Appellate Tribunal (FSAT), to avoid any abuse of the new law, according to sources.

The FSLRC, chaired by Justice BN Srikrishna, was commissioned by the previous UPA government and has recommended a unified regulator for the financial sector, while creating another layer of oversight in the form of FSAT.

A number of regulators, including RBI and Sebi, have opposed various suggestions, but sources said the government may go ahead with many key provisions suggested by the FSLRC in due course after necessary changes.

"The government will come out with something on FSLRC during the Budget. It will show some kind of commitment on this," a senior government official said.