Panel to assess competitiveness of financial sector

The government has constituted a panel to assess global competitiveness of the Indian financial sector with regard to transaction costs as well as tax rates and suggest reforms

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The Standing Council of Experts, under the Economic Affairs Secretary and comprising government and private sector experts, “will examine various pecuniary and non-pecuniary transaction costs/burden of doing business in the Indian market and make recommendations for enhancing its competitiveness,” the Finance Ministry said in a statement.

It has also been asked “to examine related policy/operating frameworks and the performance of various segments of Indian capital/financial markets and make recommendations aimed at improving their competitiveness and efficiency, as also the completeness of these markets in terms of fully meeting client needs as per global standards through provision of requisite services and financial instruments”.

The statement said the Council will meet with a “frequency necessary for fulfilment of its objectives, with the approval of the Chairperson. An effort would be made to hold meetings at least once in two months”.

Setting up of the Council is in accordance with an announcement made by Finance Minister P Chidambaram in his Budget speech.

The panel will also examine “possibilities for and suggest reform measures” aimed at enhancing transparency, development and strengthening governance in the capital markets and financial sector while ensuring that risks are contained and investor interests are protected.

Members of the Council include Chief Economic Adviser (also Alternate Chair), Prithvi Haldea (Chairman, Prime Database), Nachiket Mor (Chairman, CARE India), (Ravi Narain, Vice Chairman, NSE), Shubhashis Gangopadhyay (Director, India Development Foundation) and Ravi Anshuman (IIM Bangalore).

Joint Secretary (Capital Markets) is the Convener - Member Secretary to the Council.
The Finance Ministry further said that the government would have the right to reconstitute or discontinue the Council at any time, without any notice or attribution of any reasons.