Need to be ready to tackle external, internal vulnerabilities: FSDC

NEW DELHI: Financial Stability and Development Council (FSDC), the super regulatory body chaired by finance minister Arun Jaitley, on Tuesday reviewed the challenges facing the economy and “agreed on the need to keep a constant vigil and be in a state of preparedness of managing any external and internal vulnerabilities”.

The council, comprising regulators and key finance ministry officials, took note of the overall macroeconomic stability, structural reforms with the launch of the Goods and Services Tax (GST), action being taken to address the twin balance sheet challenge and financial market confidence.

Market confidence by investors is reflected in high and rising bond and stock valuations and long-term positive consequences of demonetisation, a finance ministry statement said after the meeting.

Chief economic adviser Arvind Subramanian made a presentation on the state of the economy. The meeting was attended by RBI governor Urjit Patel, Irdai chairman TS Vijayan, PFRDA chairman Hemant G Contractor, besides Sebi chairman Ajay Tyagi. FSDC also deliberated strengthening regulation of Credit Rating Agencies.