Financial Sector Legislative Reforms Commission (FSLRC) and Financial Sector Regulation in India
Published By: ICRIER on eSS | Published Date: June , 2016The Financial Sector Reforms Commission (FSLRC) which was set up in 2011 by the
Ministry of Finance was mandated to study existing legislation and financial sector regulatory
practices in India and to propose improvements. The FSLRC submitted its report in 2013 and
four of its members recorded dissenting notes. This paper examines the changes in regulation
in four G7 countries post the financial sector breakdown of 2008 and suggestions made by
the Financial Stability Board with respect to e.g. capital adequacy, shadow banking and
accounting. The paper also reviews the current levels of development of the Indian banking,
capital markets, pensions and insurance sub-sectors and past episodes of egregious wrongdoing.
The last section of the paper examines and comments on the principal FSLRC
proposals to further develop India’s financial sector, regulate it better and protect consumers.
The dissenting notes of four FSLRC members are also covered in this section followed by
conclusions.
Author(s): Jaimini Bhagwati, M. Shuheb Khan, Ramakrishna Reddy Bogathi | Posted on: Jun 22, 2016 | Views() | Download (424)