Enactment of Indian financial code necessary for better governance, accountability: FM

Finance Minister Arun Jaitley, in his maiden general budget speech, on Thursday advised financial sector regulators to take early steps for developing a vibrant, deep and liquid market.

Jaitley also proposed to extend a liberalized facility of five percent withholding tax to all bonds issued by Indian corporate abroad, extending validity up to 30/06/2017.

Commenting on the financial sector, Jaitley said there are some important recommendations for the sector i.e., enactment of the Indian Financial Code, which is considered necessary for better governance and accountability.

Jaitley in his budget address also announced much more liberal and ambitious Bharat Depository Receipt (BhDR) scheme. He also allowed international settlement of Indian debt securities and completely revamped the Indian Depository Receipt (IDR) scheme.

Jaitley said that the Indian capital market have been a source of risk capital for growing India and suggested introduction of uniform KYC norms with inter-usability of the KYC records across the entire financial sector. The Finance Minister also announced introduction of one single operating demat account to access and transact all financial assets through one account.

Jaitley also announced introduction of Warehouse Development and Regulatory Authority to improve post-harvest lending to farmers. Jaitley also proposed the adoption of new Indian Accounting Standards by the Indian companies from the financial year 2015-16.