Need regulators' constant vigil on financial conditions: FSDC

There is a need for the government and all regulators to keep a continuous vigil on the financial conditions, the Financial Stability and Development Council said on Friday.

The council, which met under the chairmanship of finance minister Nirmala Sitharaman, discussed issues relating to management of stressed assets, framework for resolution of financial institutions and issues related to Insolvency & Bankruptcy Code (IBC) processes and banks’ exposure to various sectors.

The meeting was attended by ministers of state for finance Bhagwat Krishanrao Karad and Pankaj Chaudhary, Reserve Bank of India governor Shaktikanta Das, Sebi chairman Ajay Tyagi and other financial sector regulators. Finance secretary TV Somanathan, revenue secretary Tarun Bajaj, financial services secretary Debasish Panda and economic affairs secretary Ajay Seth, along with corporate affairs secretary Rajesh Verma, attended the meeting.


The council also discussed issues strengthening institutional mechanisms for financial stability analysis, data-sharing mechanisms of government authorities, internationalisation of Indian rupee and pension sector related issues, said a statement by FSDC.

The statement said that the meeting also deliberated on the various mandates of the FSDC, which include financial stability and financial sector development.