Over a year after it was announced, the finance ministry on Thursday set up a panel to examine the current regulatory framework for the financial sector and rewrite and harmonise the century old legislation governing the sector.
The Financial Sector Legislative Reforms Commission (FSLRC) will be headed by former Justice B N Srikrishna and include 10 bankers, regulators, economists and sectoral experts as members. The finance ministry has said that the committee will hold its first meeting on April 5. “The FSLRC will remove ambiguity, regulatory gaps and overlaps among the various legislations making them more coherent and dynamic and help cater to the requirements of a large and fast growing economy in tune with the changing financial landscape in an inter-connected financial world,” said an official release, adding that the committee would help usher the next generation of reforms.
Other members of the commission include former PFRDA chairman Dhirendra Swarup, former chairman of Axis Bank P J Nayak, PM’s Economic Advisory Council member M Govinda Rao and IIM professor Jayant Verma, among others. Finance minister Pranab Mukherjee had in Budget 2010-11 announced plans to set up a committee to rewrite and harmonise financial sector legislations.