Union Budget 2023-2024 Reaction: Lalit Kumar, Partner, JSA

1 Feb 2023 , 12:48 PM

Financial Sector is amongst the seven priority sectors in Budget 2023. Year after year the Government has given impetus to the financial sector; and continuing with that commitment, big announcements are made in this year’s budget as well. Financial inclusion is again the focus this year. Big boost to MSME’s with credit guarantee revamp scheme from April 1, 2023, with the allocation of Rs. 9000 crore; resulting in the cost of the credit to reduce by 1%, a big relief in the current inflationary conditions.

Another key update is ‘Public Consultation’, for all financial sector regulations. need of the hour with various divergent regulations of several different regulators. This will ensure ease of compliance and business.

Derivative instruments will now become valid. Currently, under the Securities Contract Regulation Act, a contract in the derivative is a void contract. A big relief for mergers and acquisition transactions going forward. More powers to SEBI to award degrees, diplomas for courses in securities market law.