New Delhi: A government appointed panel today suggested a super regulator, merging oversight functions of market, commodity, insurance and pension regulators, while leaving the banking business regulation under the Reserve Bank.
The Unified Financial Agency (UFA), as suggested by the Financial Sector Legislative Reforms Commission (FSLRC), would subsume the functions of key agencies such as Sebi, IRDA, PFRDA and Forward Markets Commission (FMC).
Banking operations, monetary policy and payment system would continue to be regulated by the RBI. The FSLRC, headed by Justice B N Srikrishna, in its final report also suggested doing away with multiple agency architecture for scanning foreign capital inflows.
At present, FDI policy is framed by DIPP, while FDI proposals are cleared by FIPB after getting due clearances from various agencies like Enforcement Directorate, CBI and RBI. The report, which was submitted to Finance Minister P Chidambaram, also suggested setting up of a debt management office (DMO) for raising resources for government expenses.
Presently government raises funds by issuing bonds through Reserve Bank. The report, Chidambaram said, will be made public in 3-4 days. "I intend to brief the Prime Minister either today or tomorrow and in next 3-4 days in public domain," he said.
Once the recommendations of the panel are adopted the government will have to bring in legislative changes in 20-25 existing Acts to facilitate the new structure. Srikrishna said the final report is on the lines of the approach paper that the panel had come out with in October last year.
"Most of them are in line with the approach paper. But there are certain issues on which we have now more inputs. So they have been modified," he said, adding that the changes could be implemented over a period of time.