Wednesday, 9 July 2014

Current Affairs-Indian Economic Survey-2013-14-Regulators Adopt Non-Legislative Aspects of FSLRC Report

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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