The Financial Sector Legislative Reforms Commission, headed by former justice B N Srikrishna, has also suggested setting up of a financial redressal agency (FRA) to address consumer complaints against companies across the financial sector.
The Approach Paper, on which the Commission will seek comments from the stakeholders, underlined the need for establishing an independent debt management office (DMO) and a financial sector appellate tribunal to hear appeals against regulators.
"These changes will alter the Indian financial landscape from eight financial regulatory agencies to seven," said the Paper which will form the basis of the report of the Commission which was set up in March 2011 to re-write the legislations affecting the financial markets in the country.
Under the existing architecture, the financial sector is regulated by eight agencies which are RBI, Sebi, IRDA, Pension Fund Regulatory and Development Authority (PFRDA) and Forward Markets Commission (FMC), Securities Appellate Tribunal (SAT), deposit insurance agency DICGC and Financial Sector Development Council (FSDC).
As per the proposal, there would be five new agencies besides Reserve Bank and FSDC. The new ones would be UFA, FSAT, FRA, DMO and Resolution Corporation. MORE