India to come out with paper on financial stability in 2 mths

NEW DELHI: The government on Wednesday said it will come out with a paper on financial stability in two months.

Besides financial stability, the paper will cover the role of committee of financial sector regulators, HLCC, which decides on the issue of coordination among watchdogs like SEBI, the Reserve Bank, PFRDA, IRDA time to time, Joint Secretary, Finance Ministry, K P Krishnan told reporters on the sidelines of a function organised by economic think tank ICRIER.

"It (the paper) will be covering among other things role of HLCC, but more important, the focus of the paper is financial stability," he said.

He said the paper is likely to be ready by one and a half months to two months.

The paper would cover the definition of financial stability and methods to handle it, Krishnan said.

The paper would analyse whether HLCC will deal with the issue of financial stability in India or different agencies are required for the issue, he said.

The paper would also analyse if HLCC should be strengthened further, the joint secretary added.