Economy
FSLRC recommends merger of SEBI, FMC, IRDA and PFRDA into single agency

Apart from an agency created by merging SEBI, FMC, IRDA and PFRDA, there should be six other agencies in the financial system including three new ones, suggests the FSLRC

 
The Financial Sector Legislative Reforms Commission (FSLRC) has recommended creating a unified financial authority (UFA) by merging the Securities and Exchange Board of India (SEBI), Forward Markets Commission (FMC), Insurance Regulatory and Development Authority (IRDA) and Pension Fund Regulatory and Development Authority (PFRDA). The recommendation of creating UFA looks revolutionary on paper, but is neither practical nor of any use. From the consumers’ perspective, the track record of these regulators is a huge disappointment. In fact, there is hardly an example about an investor or saver receiving satisfactory redressal of his grievances from these regulators.
 
The FSLRC has said, “The unified financial authority will implement the consumer protection provisions and micro-prudential provisions for the entire financial system, apart from banking and payments. This would yield benefits in terms of economies of scope and scale in the financial system. It would reduce the identification of the regulatory agency with one sector and it would help address the difficulties of finding the appropriate talent in government agencies.” 
 
The FSLRC was set up by the ministry of finance to review and rewrite the financial sector legislations to bring them in tune with the current / emerging requirements under the chairmanship of Justice BN Srikrishna.
 
“This proposed UFA would also take over the work on organised financial trading from the Reserve Bank of India (RBI) in the areas connected with the bond-currency-derivatives nexus, and from the FMC for commodity futures, thus giving a unification of all organised financial trading including equities, government securities, currencies, commodity futures, corporate bonds, and so on.”
 
“The unification of regulation and supervision of financial firms such as mutual funds, insurance companies and a diverse array of firms that are not banks or payment systems would yield consistent treatment in consumer protection and micro-prudential regulation across all of them,” the FSLRC said.
 
The FSLRC said financial regulatory architecture suitable for Indian conditions should consist of seven agencies, including the RBI and UFA. “RBI will only regulate and supervise banks and payment system and non-banking financial companies (NBFCs) and housing finance companies (HFCs) will be regulated and supervised by UFA,” it said.
 
The FSLRC said RBI will continue to exist, although with modified functions while the existing SEBI, FMC, IRDA, and PFRDA will be merged into a new UFA. The existing SAT will be subsumed into the FSAT and existing DICGC will be subsumed into the Resolution Corporation. A new FRA and PDMA will be created and the existing FSDC will become a full-fledged statutory agency, with modified functions. Here are the seven agencies proposed by the FSLRC…
 
RBI: The RBI will perform three functions—monetary policy regulation and supervision of banking in enforcing the proposed consumer protection provisions; the proposed micro-prudential provisions; and regulation and supervision of payment systems.
 
UFA (Unified Financial Authority): The Unified Financial Authority will implement the consumer protection provisions and micro-prudential provisions for the entire financial system, apart from banking and payments. 
 
FSAT (Financial Sector Appellate Tribunal): The present Securities Appellate Tribunal (SAT) will be subsumed in FSAT, which will hear appeals against RBI for its regulatory functions, the Unified Financial Authority, decisions of the Financial Redress Agency (FRA), against the central government in its capital control functions and some elements of the work of the Financial Stability and Development Council (FSDC) and the Resolution Corporation.
 
Resolution Corporation: The present Deposit Insurance and Credit Guarantee Corporation of India (DICGC) will be subsumed into the Resolution Corporation, which will work across the financial system.
 
FRA (Financial Redress Agency): The FRA is a new agency which will have to be created in implementing this financial regulatory architecture. It will set up a nationwide machinery to become a one-stop shop where consumers can carry complaints against all financial firms.
 
PDMA (Public Debt Management Agency): An independent Public Debt Management Agency (PDMA) is envisioned.
 
FSDC (Financial Stability and Development Council): The existing FSDC will become a statutory agency and have modified functions. 
 
 

User

COMMENTS

CA PRADEEP AGARWAL

4 years ago

I have a feeling that Action can be taken at any time if the report is there, we all have to weigh the pros and cons before deciding.The report is for merger, if merged cannot be demerged easily.

ABHA CHAWLA MOHANTY

4 years ago

,,,,,,,,,,,,RIPE TIME.....ACTIONABLE!

REPLY

CA PRADEEP AGARWAL

In Reply to ABHA CHAWLA MOHANTY 4 years ago

Further Dear Sir, what action in favour of merger or against

CA PRADEEP AGARWAL

4 years ago

I doubt it, will this govt. really work for consumers or trying to look as if they are worried about the economy which they have spoilt.

CA PRADEEP AGARWAL

4 years ago

They cannot control one Dept. thinking of creating a giant with very very heavy corruption on the cards.

Vinay Joshi

4 years ago

First & foremost the FSLRC was headed by B.N. Srikrishna; J; which submitted its report to FinMin last week, posted on its website on 28th.

Who will head the FSLRC? Russell’s Paradox.

In which manner the eleven financial sector laws, institutions by statute can be got under UFA?

When the enabling amendments can be done? Enacting UFA!?
Without regulatory scatter, including SBI.

A good proposal to regulate coop Banks; micro prudential regulations. A must.

It is obvious that the Govt. `get a greater say in fixing monetary policy, the RBI domain.

Post budget, I had heard PC commenting on rate policy in an interview that ‘the advisory committee’ [of RBI] should advise the Guv; the appropriate steps initiated in the Fin.Bill’13. [meaning fiscal & CAD.]

Guv. D. Subbarao, an independent thinking a person [like his predecessors] was not directly addressed by PC.

However on March 26, his st. from Mauritius, ‘need to move towards MPC structure’.

When do we move towards ‘monetary policy committee structure’? & HOW?
Under FSLRC what is the norm?

Yes, it was also suggested by C.Rangarajan earlier, the committee he headed.
Nothing new in it. MPC welcome, as is the practice in many countries.

Why MPC should not have RBI members in majority? Why only the RBI Gu?
Yes the Guv; can override MPC in ‘exceptional circumstances’.

Who is the FinMin to set quantitative policy? This silent objective is yet taking ‘baby steps’ in other advanced economies since 90’s. They have controlled inflation, no clear results related to economic growth.

In UK, nine member MPC has four outside, US, quasi MPC, none.

Apart from independent RBI, can we practice fixed exchange rate like China with 1% variation?
The yuan is at 19yr high [6.2689/$].

Our CAD will further depreciate the INR, w/o resulting in exports growth.
RBI, precluded non-intervention forex mkt. policy, a great aspect.

The present Guv; is astutely handling it, irrespective of the FinMin, credible.
Last week reserves stand at $292.3B.

If EPFO gets into the ambit of FSLRC, it will guarantee the protection.

When GST will be there? When DTC will be there? Not FSLRC concern.

It is expected that at least FSLRC will define in policy similar to the Finance Bill.

Open in the public domain & accordingly enacted as law.

We wait & watch, tho’ rightful cast aspersions, in a way.

Regards,


REPLY

ABHA CHAWLA MOHANTY

In Reply to Vinay Joshi 4 years ago

WHAT BILLS AND LAW HAVE DONE TO FINANCE SECTOR??........THE POLICY MAKER NEED TO CLOSE, AND, COLOR MARKERS GREY ......

CA PRADEEP AGARWAL

In Reply to ABHA CHAWLA MOHANTY 4 years ago

But, will not because they are neck in deep, RBI could not be controlled so cutting its wings

CA PRADEEP AGARWAL

In Reply to Vinay Joshi 4 years ago

Well summed up
Regards

Nilesh KAMERKAR

4 years ago

Very much like Lego.

CA PRADEEP AGARWAL

4 years ago

Mr DSouza is correct, it is new wine in old bottle,
IN case the Govt. fixes time bound clearances if not, will be deemed to be cleared, you will find hell lot of change in the working and logging should be on line so that the date on which logged is not tampered with.

Ubaldo C DSouza

4 years ago

The first sentence says it all - new wine in old bottles. How can we do away with the "pillar to post" mentality? The various temples of authority can be juggled around but we must have them for different kinds of "pujas". The "One window" phrase seems to be the current infatuation but it can never be implemented.

CA PRADEEP AGARWAL

4 years ago

will it be able to stop the rot prevalent in stock market and other markets. Or it is a ploy to merge and then what has been done before next govt. will not be able to get previous information.

RTI reveals how Prasar Bharati board’s decision for DG’s post was changed

The board, on 15 March 2011, unanimously shortlisted five candidates for the post of DG of DD and AIR. However, within eight days, the board members were ‘asked’ by the I&B ministry to convey their order of 'preferences'

While the Union government always keep saying that Prasar Bharati, which controls All India Radio (AIR) and Doordarshan (DD), is an autonomous body, when it comes to appointments for the top post, the autonomy vanishes, reveals a reply received under the Right to Information (RTI) Act. 

 

The file-notings received through a RTI petition by Subhash Chandra Agrawal, reveals that eight out of nine members of Prasar Bharti Board including its chairperson, changed their decision made on 15 March 2011 for twin posts of Director Generals (DG) of DD and AIR. The preferences given by the board members were changed on 23rd March.

 

“Board's unanimous resolution passed on 15 March 2011 in this regard was signed by all the members during the meeting itself where file-notings clearly reveal that finalised short-listed names were according to preference of short-listed members. But there are no signatures of board members on the changed decision dated 23 March 2011, suggesting probability of fulfilling the formality of seeking ‘consent’ of members telephonically," Mr Agrawal alleged.

 

After the interviews held on 15 March 2011, the board short-listed three persons for DD and two persons for AIR for the post of DG. The names suggested after extensive interviews—in that order—were LD Mandloi, Tripurari Sharan (1985, IAS, Bihar), and Ramsubhag Singh (1987, IAS, Himachal Pradesh) for the post of DG, Doordarshan, while G Jayalal and LD Mandloi were short-listed for the post of DG, AIR.

User

Mumbai crime branch team gets reward for 26/11 probe, finally!

The 46-member team that probed the 26/11 Mumbai terror has been awarded a paltry sum of Rs6.58 lakh and that too after four years, by the Maharashtra government

The 46-member team of the Mumbai crime branch that probed the 26/11 terror attack has finally been awarded Rs6.58 lakh by the Maharashtra government. This is a paltry amount compared with rewards given in other cases, and these cops are also denied a one-step promotion, as well. This also took the state government more than four years to clear the hurdles of rules and regulations.

 

Rakesh Maria, the then joint commissioner of police (crime) and Deven Bharati, the then additional commissioner of police (crime) and Ashok Durafe, retired assistant commissioner of police, have been rewarded with just meritorious certificates.

 

Inspector Ramesh Mahale, who was the chief investigating officer and put together the 11,350-page charge-sheet received Rs1 lakh, the highest cash award given by the state government. There are five senior police inspectors (SrPIs), including Mahale, 11 PIs, 10 assistant PIs, one police sub-inspector and 16 constables. The Mumbai police had formed 11 teams for the probe.

 

As per the government guidelines, no employee should be paid a cash award more than his/her total monthly salary. However, in this case the rule was amended.

 

The reward amount is too low compared with other rewards given by the government. For example, the investigating team probing journalist J Dey murder case got an award of Rs10 lakh from the state home ministry.

 

In another such case, Iqbal Shaikh, the now retired ACP, and his team was awarded Rs10 lakh in 1993 for recovering 1,400 kg of RDX from Mumbra and Kausa areas near Thane. The irony is he received the cash award 18 years after the announcement.

 

Here are the names and designations of the members from the 26/11 investigating team...

 

Sr. No

Name, designation

Award

1

Rakesh Maria (IPS), Addnl DG, (ATS)

Certificate

2

Deven Bharati (IPS), Addnl DG, (Law & Order)

Certificate

3

Ashok Durafe, ACP (retired)

Certificate

4

Ramesh Mahale (SrPI)

Rs1 lakh

5

Arun Chavan (SrPI)

Rs20,000

6

Abdul Rauf Shaikh (SrPI)

Rs25,000

7

Damodar Chaudhari (SrPI)

Rs10,000

8

Vilasrao Wankhede (SrPI)

Rs5,000

9

Prashant Marde (PI)

Rs40,000

10

Dinesh Kadam (PI)

Rs20,000

11

Dattatray Bhargude (PI)

Rs20,000

12

Kundlik Nigade (PI)

Rs25,000

13

Keshav Shengle (PI)

Rs25,000

14

Shripad Kale (PI)

Rs25,000

15

Vilas Gangawane (PI)

Rs25,000

16

Ravindra Badgujar (PI)

Rs10,000

17

Nandkumar Gopale (PI)

Rs10,000

18

Ninad Sawant (PI)

Rs10,000

19

Smt Shalini Sharma (PI)

Rs10,000

20

Ashwanath Khedkar (API)

Rs15,000

21

Vijay Shinde (API-retired)

Rs10,000

22

Ajay Sawant (API)

Rs15,000

23

Dnyaneshwar Wagh (API)

Rs15,000

24

Pravin Kuyeskar (API)

Rs25,000

25

Vilas Datir (API)

Rs10,000

26

Vaibhav Dhumal (API)

Rs25,000

27

Yogesh Chavan (API)

Rs10,000

28

Padmakar Devre (API)

Rs10,000

29

Mahammad Ajam Patel (API)

Rs10,000

30

Pravin Prabhu (PSI)

Rs5,000

31

Yasin Shaikh (Hawaldar)

Rs7,000

32

Harishchandra Hake (Hawaldar)

Rs5,000

33

Rajendra Yadav (Hawaldar)

Rs10,000

34

Pralhad Madne (Hawaldar)

Rs7,000

35

Shivaji Sawant (Hawaldar)

Rs7,000

36

Vinod Kamble (Hawaldar)

Rs5,000

37

Santosh Desai (Police Naik)

Rs25,000

38

Girish Anerao (Police Naik)

Rs20,000

39

Subhash Ghosalkar (Police Naik)

Rs5,000

40

Chandrakant Raut (Police Naik)

Rs5,000

41

Sharad Shinde (Constable)

Rs7,000

42

Bhaskar Patole (Constable)

Rs5,000

43

Rahuk Kamble (Constable)

Rs5,000

44

Viresh Sawant (Constable)

Rs5,000

45

Asam Farukhi (Constable)

Rs5,000

46

Bhausaheb Gaikwad (Constable)

Rs5,000

 

Total

Rs6.58 lakh

 

User

COMMENTS

Vinita Deshmukh

4 years ago

Rakesh Maria, who co-ordinated the control room was a disaster and `To the last bullet' book has proved that there was complete failure in communication between the control room and officers on ground zero. Deven Bharati fled from the scene when he was asked to go to ground zero. Hence, both of them do not even deserve a certificate! No court martial against Deven Bharati for running away from duty. Lots of praises for Rakesh Maria in the two member Pradhan Committee report. Sad is the state of our governance.

Vaibhav Dhoka

4 years ago

Public should raise fund to reward these officers and their team.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)