The Financial Sector Legislative Reforms Commission (FSLRC) under Justice (Retired) BN Srikrishna, mandated to harmonise financial sector legislations, rules and regulations, has come out with an approach paper that sets the ground for rewriting more than 60 laws to make them contemporary.
It has called for subsuming regulators such as SEBI, IRDA and PFRDA into a single agency, rekindling the debate on setting up a super regulator for the financial sector.
The paper, which was made public on Monday, underlines the need for equipping financial sector legislations that can deal with problems including consumer protection, micro-prudential regulation, resolution of failing financial arms, capital controls, systemic risk, development, monetary policy and debt management.
“For these functions to be appropriately performed, well-structured government agencies are required,” the paper said.
The FSLRC has proposed a unified consumer protection law, which would contain three components: an enumerated set of rights and protections for consumers, an enumerated set of powers, and principles that guide what power should be used under what circumstances.
The approach paper also deals with issues relating to regulators’ independence and accountability, capital controls, dispute resolution, and competition among others.
Justice (Retd.) Debi Prasad Pal PJ Nayak, KJ Udeshi, Yezdi H Malegam, JayantVarma, M Govinda Rao, and Dhirendra Swarup are the other members of the commission. It was set up in March 2011.