Regulators Adopt Non-Legislative Aspects of FSLRC Report
The Financial Sector Legislative Reforms Commission (FSLRC) in its
Report submitted on 24 March 2011 has given wide-ranging recommendations, both
legislative and non-legislative aspects, on the institutional, legal, and
regulatory framework, and operational changes in the Indian financial sector. The
Economic Survey mentions that in October 2013 regulators decided to adopt the
non-legislative aspects of FSLRC recommendations. These are broadly in the
nature of governance enhancing principles for enhanced consumer protection,
greater transparency in the functioning of financial sector regulators in terms
of their reporting system, greater clarity on their interface with the
regulated entities and greater transparency in the regulation making process by
means of mandatory public consultations, incorporation of cost benefit analysis
etc. Most households are as yet cut off from large parts of the financial
system. The survey says next wave of infrastructure financing will require a
capable bond market.
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