The finance ministry on Thursday notified the constitution of the Financial Sector Legislative Reforms Commission (FSLRC) under justice (retired) BNSrikrishna, for rewriting and harmonising financial sector legislations, rules and regulations.
"This had become necessary as the institutional framework governing India's financial sector was built over a century," a finance ministry statement said.
It would rewrite and streamline financial sector rules and laws and bring them in harmony with the requirements of a modern financial sector. The commission will complete its work in 24 months.
There are over 60 Acts and multiple rules and regulations in the sector and many of them date back decades when the financial landscape was very different from that of today.
"Large number of amendments made in these Acts over time has increased the ambiguity and complexity of the system," the statement said.
This move is expected to remove ambiguity, regulatory gaps and overlaps among various legislations, making them more coherent and dynamic and help cater to the requirements of a large and fast-growing economy in tune with the changing financial landscape.
"In the long-term, it would help usher in the next generation of reforms, contribute to efficient financial intermediation and enhance the growth potential of the nation," the statement said
Justice (retd) Debi Prasad Pal, PJ Nayak, KJ Udeshi, Yezdi H Malegam, JayantVarma, M Govinda Rao, C Achutan and Dhirendra Swarup are the other members of the commission.