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FSDC will sort out all inter-regulatory issues: PFRDA

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 5:24 AM IST

Interim pension regulator PFRDA today exuded confidence that the proposed FSDC will resolve all inter-regulatory issues.

"We have to see how it (FSDC) functions, but I have absolutely no doubt that it will be able to sort out all the inter-regulatory issues," PFRDA chairman Yogesh Agarwal told reporters on the sidelines of a function organised by the PHD Chamber of Commerce here.

PFRDA is proposed to be one of the members of the Financial Stability and Development Council (FSDC) along with other financial sector regulators -- RBI, Sebi and IRDA.

The body, to be set up soon, will be headed by Finance Minister Pranab Mukherjee.

Earlier, RBI had expressed reservations that regulators autonomy may be breached by FSDC.

To allay the central bank's fears, the Finance Ministry had recently decided that the RBI governor will head a sub-committee of FSDC.

Recently, Finance Minister Pranab Mukherjee had also denied that FSDC would be a super-regulator.

"Let me say clearly that FSDC will not assume the role of super regulator. The existing regulators will enjoy the powers as vested by (respective) Acts," Mukherjee had said.

Noting that an air has been created that FSDC would take the role of a super regulator, he had said, "This is not so."

The purpose of setting up the FSDC, Mukherjee had explained, was to coordinate the work of various financial sector regulators-- RBI, SEBI, IRDA and PFRDA.

The Finance Ministry proposes to shortly announce the framework of FSDC, which will be headed by the Finance Minister.

Mukherjee had further said that such a council was necessary to resolve conflict among different regulators. "Certain things are necessary for smooth running of the system," he added.

The basic objective is to provide stability for a healthy development of the financial sector, he had said, adding the FSDC will have representatives from the concerned quarters.

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First Published: Oct 18 2010 | 3:51 PM IST

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