Budget 2015: Finance minister pushes for reforms of financial laws

  • HT Correspondent, Hindustan Times, New Delhi
  • Updated: Mar 01, 2015 00:28 IST

In the Budget 2015-16 announced on Saturday, finance minister Arun Jaitley gave an impetus to the much needed reforms process and unveiled a slew of measures to assure investors that India is committed to carrying out financial reforms and enhance the ease of doing business.

Capital Account Controls is a policy, rather than a regulatory matter. “I propose to amend, through the Finance Bill, Section 6 of the Foreign Exchange Management Act to clearly provide that control on capital flows as equity will be exercised by the government, in consultation with the RBI,” said Jaitley.

A properly functioning capital market also requires proper consumer protection. To ensure this, Jaitley has proposed to create a task force to establish a sector-neutral financial redressal agency that will address grievances against all financial service providers.

He informed the Lok Sabha that the work assigned to other task forces on the Financial Data Management Centre, the Financial Sector Appellate Tribunal, the Resolution Corporation and the Public Debt Management Agency was progressing satisfactorily. “We have received a large number of suggestions regarding the Indian Financial Code (IFC), which are being reviewed by the Justice Srikrishna Committee. I hope... to introduce the IFC in Parliament for consideration,” he said.

Jaitley has proposed bringing in a comprehensive Bankruptcy Code in fiscal 2015-16 that will meet global standards and provide necessary judicial capacity — the proposal comes as the Sick Industrial Companies Act and the Bureau for Industrial and Financial Reconstruction have failed in achieve the stated objectives.

Jaitley has proposed to merge the Forward Markets Commission with the Securities Exchange Board of India (Sebi) to strengthen the regulation of commodity forward markets and reduce wild speculation.

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