JOIN USA government-appointed panel has proposed a super regulator for the financial sector which would subsume the functions of key agencies like Sebi, Irda, PFRDA and Forward Markets Commission (FMC).
The Approach Paper brought out by Financial Sector Legislative Reforms Commission, headed by former justice B N Srikrishna, has also suggested creation of a financial redressal agency (FRA) to address consumer complaints against companies across the financial sector.
The other important observations of the Commission, which was appointed by the government last year to recast and update financial sector legislations, include setting up of a separate debt management office (DMO) and financial sector appellate tribunal (FSAT). It will have to submit its report by March 2013.
As regards the Reserve Bank, the Commission said the central bank should focus on monetary policy, ensure consumer protection law in the fields of banking and payments.
“These changes will alter the Indian financial landscape from eight financial regulatory agencies to seven,” said the Approach Paper.