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Financial regulators to be merged in single agency: FSLRC

The FSLRC has also proposed to set up a financial redressal agency to address consumer complaints against companies across the financial sector

October 03, 2012 4:41 IST | India Infoline News Service
The Financial Sector Legislative Reforms Commission (FSLRC)—a government-appointed panel—on 1st October said that major regulators in the country such as SEBI (Securities and Exchange Board of India), IRDA (Insurance Regulatory and Development Authority), Pension Fund Regulatory and Development Authority (PFRDA) and Forward Markets Commission (FMC) should be merged into a unified financial agency (UFA), according to media reports.

The FSLRC was constituted by Ministry of Finance in March, 2011. The setting up of the FSLRC was the result of a felt need that the legal and institutional structures of the financial sector in India need to be reviewed and recast in tune with the contemporary requirements of the sector.

The FSLRC has also proposed to set up a financial redressal agency (FRA) to address consumer complaints against companies across the financial sector. The Approach Paper, on which the Commission will seek comments from the stakeholders, underlined the need for establishing an independent debt management office (DMO) and a financial sector appellate tribunal to hear appeals against regulators, the reports added.

"These changes will alter the Indian financial landscape from eight financial regulatory agencies to seven," said the Approach Paper which will form the basis of the report of the Commission.

According to the current system, the financial sector is regulated by eight agencies. This includes RBI, SEBI, IRDA, PFRDA, FMC, Securities Appellate Tribunal (SAT), deposit insurance agency DICGC and Financial Sector Development Council (FSDC).
According to the proposal, there would be five new agencies besides RBI and FSDC. The new ones would be UFA, FSAT, FRA, DMO and Resolution Corporation, the reports said.





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